The long wait for financial assistance for General Motors seems to be forcing the car manufacturing giant to consider the worst case solution, bankruptcy as continuous decline in sales has left them with no viable alternative. Although GM chief executive Rick Wagoner has pointed to it as a non-viable alternative, it seems like such an option is likely to occur.

GM, in a statement to the newspaper, said the board has discussed bankruptcy, but said the board did not view it as a “viable solution to the company’s liquidity problems.”

A GM spokesman told the paper that management is doing everything it can to avoid a bankruptcy filing.

Source

It is no secret that the senate has held off disbursing funds for GM due to the number of constraints which include the transition of the US government to the Obama cabinet. But while that may be excusable, large scale auto manufacturers simply cannot wait for January to make a decision.

If ever they do decide to file for bankruptcy, the impact is expected to not only affect the U.S. but the entire world as well.

[tags]liquidity_problems, bankruptcy_filing, rick_wagoner, auto_manufacturers, financial_assistance, general_motors, gm, large_scale, us_government, chief_executive[/tags]

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