General Motors and Chrysler may be forced into Chapter 11

| 9 February 2009 15:17

It seems that the Obama Administration is playing hardball with GM and Chrysler. They may force the companies into bankruptcy to protect American taxpayers from having to pony up yet more money for the beleaguered automakers.

I see this as a positive development — although a pre-packaged Chapter 11 solution is the way this should end (a messy bankruptcy could trigger some Lehman-like fallout. The automakers should be handled with care.).

Meanwhile, in Europe, France is bailing out their automakers. “This is not a gift. It is not a subsidy. It is a loan offered at an interest rate of 6%,” French President Nicolas Sarkozy said. Right.

Source
French carmakers get 6.5bn euros – BBC News

avatar About Edward Harrison

Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty years of business experience. He is also a regular economic and financial commentator on BBC World News, CNBC Television, Business News Network, CBC, Fox Television and RT Television. He speaks six languages, a skill he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.

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