New GM CEO Fritz Henderson says he's open to bankruptcy
DETROIT -- General Motors CEO Frederick "Fritz" Henderson said Tuesday that GM will do whatever it takes to meet the government's restructuring goals, even if it means a Chapter 11 bankruptcy filing.
Wagoner's Feb. 17 plan called for closing five more plants in the United States than previously announced, bringing total plant closures over the next three years to 14, eliminating 47,000 jobs worldwide this year and shedding 20,000 in the U.S. by 2012.
Wagoner, ousted over the weekend by President Obama's automotive task force, had long opposed filing for bankruptcy protection as a strategy for cutting GM's debt load and forcing more competitive labor contracts on union workers. He feared a bankruptcy filing would dry up GM's customer base if people fearing the company was going out of business avoided buying its vehicles.
Obama's plan, laid out Monday, calls for the government to backstop GM and Chrysler warranties, which might allay buyer concern. The companies have gotten a combined $17.4 billion in federal loans, which have kept them afloat during the sales collapse, and have asked for $21.6 billion more.
The auto task force judged the automakers' plans to become viable inadequate, however, and Obama on Monday gave GM 60 days to meet more rigorous targets before it could qualify. Chrysler, judged not able to stand alone, got 30 days to complete its proposed partnership with Fiat.
Some GM watchers doubt Henderson, a Detroit native who worked so closely with Wagoner he said he knew what Wagoner was thinking after a few words, can make the changes.
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