You would think that having a survival plan would be the first order of business for most management teams, but apparently not GM’s. Only now that it has been provisionally stiffed by the US taxpayer and ordered to come up with such a plan is GM finally assembling one.
WSJ: General Motors Corp. management on Sunday was racing to finalise a viability plan to take to Congress, with a boardroom hellbent on securing a federal rescue loan.
At the same time, directors — unlike chief executive Rick Wagoner — are also insisting that all options stay on the table, including a Chapter 11 bankruptcy filing, if a bailout doesn’t come through…
In recent days, dealers, union officials, and other key constituents have traveled to the company’s headquarters in Detroit to help management find new ways to cut costs, people involved in the meetings said. (Please see related article.)
“Everything is on the table,” according to one person familiar with the board’s thinking. Following Mr. Wagoner’s poor performance in Washington last month, the board began meeting more and taking more seriously its obligation to investigate other options.
Mr. Wagoner has said that a filing for Chapter 11 bankruptcy protection isn’t a viable option, insisting the auto maker would collapse because consumers won’t buy from a car from a company in bankruptcy and obtaining financing would be nearly impossible.
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