More GM plants could close, new CEO says
DETROIT -- General Motors' chief executive said Tuesday that more of the automaker's plants could close as part of GM's effort to meet new, tougher requirements for government aid.
In his first press conference as CEO, Fritz Henderson said he expects the company would "need to take further measures" in terms of plant closures. That's beyond the five plants the company said it would shutter when it submitted a restructuring plan to the government last month.
GM is also likely to offer another buyout program to workers as it looks to cut labor costs, Henderson said.
President Obama said Monday that GM's plan didn't go far enough. The company has 60 days to make more cuts and get more concessions from bondholders and unions or it faces bankruptcy.
Henderson said that although an in-court bankruptcy filing is not preferred, it is "certainly more probable" as he looked at what the company needed to do.
He also said on the fate of GM's Hummer brand will come in the next few weeks.
Henderson took over as CEO of GM Monday, after the Obama administration asked former CEO Rick Wagoner to resign.
In an effort to increase sales, GM launched its "Total Confidence" program which will make car payments for customers who lose their jobs through no fault of their own.
Ford Motor also announced a similar program Tuesday.
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