the auto makers' boards should take the courageous step of putting their companies into bankruptcy. Some creditors might make the case for liquidation, but given the diminished worth of the auto makers' assets, that's a pretty unattractive scenario. Instead, creditors would most likely opt for the government's stepping in as the debtor-in-possession financier supporting the reorganization.
Talk about a fresh start. For at least a decade, US auto makers have been chipping away incrementally at their massive legacy costs. But reorganization would finally open the door to meaningful structural change with the renegotiation of contracts with creditors, dealers and unions. And it would do so with a much improved chance of taxpayer return.
Once in Chapter 11, a merger would further galvanize fundamental change. Three companies are too cumbersome to unite, and Ford has a two-tiered, family-controlled structure, so we'll leave them out of this solution for now and propose that GM and Chrysler join forces. (via Put firms into bankruptcy, reorganize, merge - Corporate News - livemint.com)
Jack Welch sez ...
Chapter 11 ... Bush wants to leave this problem for Obama ... Obama is promising the moon ...
I say, do whatever you want .. but do it quickly!
Let Unca Sam buy out the current shareholders, sell to the new shareholders (Chinese may want US auto) or build it up again (like Jack Welch sez) !!
If you want American auto to survive - that is!!