While GM’s Rick Wagoner has made clear his opposition to the company filing for Chapter 11 bankruptcy, members of the board may nevertheless feel that it is an option to be considered.
A story in the online edition of The Wall Street Journal, citing people familiar with the matter, said that GM’s board — which in the past has publicly offered Chairman and Chief Executive Officer Rick Wagoner its strong support — agrees that seeking government funding is the company’s top priority but isn’t willing to dismiss the possibility of a bankruptcy filing.
Wagoner told lawmakers in Washington last week that GM’s management thinks bankruptcy protection is not an option for the automaker and the company would focus on convincing Congress to provide financial support.
The Journal reported that in a statement on Friday, the company said its board had discussed bankruptcy but didn’t see that as a “viable solution to the company’s liquidity problems.” A GM spokesman, Tony Cervone, told the newspaper that management is considering doing everything in its power to avoid a filing.
There was some support for Wagoner’s line in a survey conducted by market researcher Morpace. The study shows that consumers who are currently likely to purchase a new vehicle from one of the Big Three are only half as likely to do so if the company goes bankrupt.