Auto Task Force Could Present Plan for Chrysler, GM Next Week

Joshua Duval
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Two Michigan Representatives said in separate interviews yesterday that President Obama's automotive task force may be ready to present frameworks for plans to restructure Chrysler and GM by as early as next week.

Democrat Sander Levin and Republican Candice Miller said lawmakers were told after a meeting with the task force on Tuesday that the panel could have a report ready by next week. The report will not be a detailed plan, but will instead outline the basic recommendations of the task force.

"It won't be the final step, but something significant," Levin said. He also said that the panel expects GM bondholders to "step up to the plate" before the end of March to help the automaker in its plan to reduce its $27 billion in debt. GM's bondholders have so far been resistant to making concessions.

According to Miller, Chrysler and GM may not be getting the same treatment.

"They said they are two different companies and have different sets of circumstances, so they would have a different set of recommendations," she said of the task force members' decisions.

This could mean that one of the companies might be allowed to go into a "pre-packed bankruptcy" - likely Chrysler, which is much smaller than GM and seen as being less viable because of its product lineup. However, if the administration allows even one of the automakers to fail, the $5 billion loan program for suppliers may have been in vain, as the supplier chain would likely collapse if one of the Detroit automakers filed for bankruptcy.

The task force was originally required to make a decision about the two automakers by March 31, but advisors to the team have said that while the members of the panel are working diligently to come up with a plan, they will not be held to artificial timelines.

Source: Automotive News

thesmartalex
the fact is GM is so inefficient it is scary. SOOOO many brands that have 0-1% market share in their respective markets is no way to run a company, GM still hasnt figured that out yet.because of their mismanagement and over-extension of their company they actually had to kill the successful Oldsmobile brand. the only reason this brand died is because it was starved of good product while other less profitable and smaller divisions recieved attention,money, vehicles. now those very divisions that caused oldsmobiles demise must be cut loose.Saturn-Saab-Hummer all must be shut down by 2011. these need to be taken out of the market place competition to allow gm and other companies to prosper. a sale of these brands wouldnt net much money for GM and would give their competitors entry to U.S. markets and large dealer-networks. not a good idea by any stretch.further the company could streamline by taking Buick truly international. the company wants to align Opel and Buick. Opel/Vauxhall as a division are in trouble, take three brands and severely cut costs by folding those brands into the BUICK brand name, creating an international powerhouse and drastically reducing overhead, advertising expense and duplicative services and management.Lets also apply that theory to the Pontiac division. in coming months and years it will become closely aligned with the australian GM division of Holden. lets take the similar brands of Holden,Pontiac,Daewoo which sell similar products and consolidate them into Pontiac to create a global full line sporty brand with simplified management structure,branding, and cost saving synnergies.this restructuring takes 12 brands and makes them 5 strong powerhouse brands with simplified structure and better able to compete both nationally and internationally. wake up and pay attention GM

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