Bankruptcy protection for General Motors Corp is “more probable,” the company’s new chief executive officer said yesterday, as the pressure begins to mount on debt holders and the United Auto Workers union to reach agreements that will help save the teetering auto maker.
“If we’re not successful doing it out of court, we’ll do it in court,” Fritz Henderson said in his first news conference after taking over on Monday from Rick Wagoner, who was asked by the U.S. government to step aside after the Obama administration rejected a restructuring plan the company submitted in February.
“By no later than June 1, if we’re not able to accomplish this outside bankruptcy, we’ll be in bankruptcy. It’s pretty clear. The government was unequivocal,” he said…
One might think it odd that Mr Henderson is at the same time going so easy on the CAW:
General Motors’ new chief says worker concessions in Canada already make the teetering automaker competitive despite government calls for more labour cost cuts in exchange for public aid.
Fritz Henderson, who replaced Rick Wagoner as chief execeutive officer, said yesterday the company will consider requests made by federal and Ontario politicians but added that the concessions meet their needs [agreeing with “Dr No“! – MC].
“What we need is to understand exactly what the Canadian government would like us to achieve, further beyond what’s been achieved,” he told reporters in Detroit…
A couple of possible explanations: he expects either government pressure on the Union, or the bankruptcy process itself, to do the job for GM. Or maybe he’s basically already written off the company’s increasingly limited Canadian operations:
Henderson said U.S. demands in exchange for more aid will mean GM will close more plants and offer additional employee buyouts.
GM operates two major assembly plants in Oshawa, a parts complex in St.Catharines and a transmission operation in Windsor. It is closing one Oshawa plant next month and the Windsor operation next year…
GM–20% in Canada: I don’t get it