GM and Chrysler 'consider bankruptcy'

Thursday 4th December 2008

General Motors and Chrysler are reported to be considering accepting a pre-arranged bankruptcy in a bid to receive a multi billion dollar government bailout.

Bloomberg claims that in response to car manufacturers calls for a bailout, staff for members of the US Congress have consulted experts about whether the bankruptcy could be used to reorganise the sector without liquidation.

Both General Motor and Chrysler have not commented on the claims.

Along with Ford Motor, the car manufacturers have urged Congress to authorise a $34 billion (£23.37 billion) bailout, pledging to restructure and cut jobs to remain viable.

In the UK, it was announced on Thursday that sales of new cars fell in November by 36.8 per cent on the previous year.

Figures form the Society of Motor Manufacturers and Traders (SMMT) showed year-to-date sales were also down by 10.7 per cent at 2,023,104. ADNFCR-1783-ID-18911684-ADNFCR

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