Time is up for GM, Chrysler to file restructuring plans
General Motors (GM) and Chrysler must file restructuring plans with the government Tuesday that will determine whether the two struggling automakers get billions more in government loans that could keep them alive.
The plans will include discussions of bankruptcy because the government said they must. The car companies insist this is not a realistic option.
When the government agreed late last year to lend GM $13.4 billion and Chrysler $4 billion to keep operating, they were told to come back now with plans showing major cost cuts and ongoing restructuring so the taxpayers’ money would not be wasted on companies that would go broke.
The government Tuesday will hand over to GM the final $4 billion of that $13.4 billion commitment. Whether the automakers get any more depends on their restructuring plans, to be filed electronically Tuesday, without a formal presentation.