Contrary to today’s story in the Wall Street Journal, GM has not changed its position on bankruptcy.
Restructuring the business out of court remains the best solution for
GM and its constituents. The company has established a clearly-defined
plan to restructure its business and restore GM to long-term viability,
and GM is aggressively executing that plan through a series of actions
outlined in its February 17 viability plan.
As a prudent
business measure, the company has analyzed various bankruptcy
scenarios. However, the company firmly believes an in-court
restructuring would carry with it tremendous costs and risks, the most
significant being a dramatic deterioration of revenue due to lost sales.