Posted on March 20, 2009 at 1:05 PM
Filed under: Detroit Breakdown | Divesting and Restructuring
Tagged: chrysler llc , general motors corp.

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Steven Rattner, leader of President Obama's auto industry task force, does not sound like a man about to push his charges into bankruptcy.

On Tuesday he said bankruptcy is not a "desirable outcome."

Friday, in an interview with Bloomberg TV (written up here), Rattner acknowledged that the automakers could need considerably more government aid than the $21.6 billion they've requested. He also has kind words for Rick Wagoner, CEO of General Motors Corp. (NYSE:GM) and Robert Nardelli, CEO of Chrysler LLC.

The most hawkish thing Rattner has to say in the Friday interview is a nudge to bondholders to make some concessions.

Thursday, the Treasury announced a $5 billion plan to support auto parts suppliers, which includes a guarantee that if they ship to GM and Chrysler, they'll get paid. That also makes it sound like the task force is leaning away from bankruptcy as a means to restructure the companies. - Kenneth Klee




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