GM, Chrysler: Bailout Is Bad, but Bankruptcy Is Worse

By John Johnson,  Newser Staff
Posted Feb 17, 2009 9:23 PM CST
GM, Chrysler: Bailout Is Bad, but Bankruptcy Is Worse
Chrysler and GM say bailing them out makes more sense than letting them go bankrupt.   (AP Photos/Paul Sancya)

The restructuring plans unveiled by GM and Chrysler make one thing clear: the cost of bailing out the companies has jumped $14 billion to a total of $39 billion. But as the White House begins to pick through the plans, the companies say it would be far more expensive if they go bankrupt, the Wall Street Journal reports. GM says it would require $100 billion in financing for a "risky" bankruptcy, while Chrysler says it would need an additional $24 billion. Both tried to play down even the possibility of such a move.

Among the odds and ends:

  • Saturn and Hummer could be history by 2011.
  • Chrysler will scrap the Aspen, Dodge Durango, and PT Cruiser.
  • GM will keep just four brands: Chevrolet, Cadillac, GMC, and Buick.
  • GM will cut 20,000 US jobs and close 14 US plants by 2012.
  • Chrysler will cut 3,000 jobs this year.
(More General Motors stories.)

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