It is a pity that what is probably the busiest the Executive Suite over at General Motors has been in the last twenty years is during its current preparation for a bankruptcy filing. And as tempting as it is to regard a filing for bankruptcy protection by the automaker as something of a triumph of rationality, it is, in fact, the reverse. It should be quite difficult not to be beyond pissed off at the billions of cash, taxpayer cash, that has been burned over the last many months, all for the sake of the PR gloss of calling the currency whirlpool a “going concern.” This also bodes rather poorly for the many financial institutions that would seem to be in similar condition, though perhaps with slightly less advanced pathology.
Of course, the news could be little more than the latest bit of leaked brinkmanship, but we think that ship has sailed.
General Motors Corp is in “intense” and “earnest” preparations for a possible bankruptcy filing, a source familiar with the company’s plans told Reuters on Tuesday.
A plan to split the company into a new company made up of the most successful units, and an ‘old company’ of its less-profitable units is gaining momentum and is seen as the company’s best configuration for the future, said another source familiar with the talks.
Don’t worry. Nothing is fucked. We are beyond certain that the current plan to mass produce wheelchairs with windscreens (note the wheelie wheels on the back!) in partnership with Segway (free colostomy bag with every purchase!) will pull the chestnuts out.
GM in “intense” bankruptcy preparations: source [Reuters]