From the “Things We All Saw Coming” department, Obama briefs Congress that his real homework assignment for GM and Chrysler was to read chapter 11:
While Obama two days ago gave GM 60 days to come up with deeper cost and debt reductions than the biggest U.S. automaker proposed in a viability plan submitted last month, the “quick and surgical” bankruptcy his administration described as an option appears to be inevitable, the people said. Obama personally signed off on asking GM Chief Executive Officer Rick Wagoner to step down, as he did on March 29, they said.
“Prepackaged bankruptcy” makes me think of really bad casserole, and probably tastes a lot like crow, I think. But before you get too emo for Chrysler and GM, you have to think that the least thrilled about this entire state of affairs is Ford, who chose not to take failout aid and will now find themselves at a competitive disadvantage to the leaner, meaner iterations of the revised companies. Do you really think the unions are going to give Ford the same cuts that come out of bankruptcy court, just for fun? On the upside, they may be able to grab some market share out of the confusion, but on the downside, they stay saddled with a lot of fail.