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WORLD> America
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GM chief expresses optimism after Senate hearing
(Agencies)
Updated: 2008-12-05 11:42 WASHINGTON -- General Motors Corp. chief Rick Wagoner emerged Thursday from a six-hour hearing before the Senate Banking Committee optimistic that a deal can be reached in Congress to help his company survive a critical cash shortage.
In an interview with The Associated Press, the GM chairman and chief executive officer said many of the questions and suggestions from committee members were compatible with the viability plan GM submitted to Congress this week in an effort to obtain up to $18 billion in federal loans. "It's certainly early for me to guess how this might come out and what specific conditions might be attached, but our own plan suggested that conditions be attached because we thought that was going to be necessary to get everything done," Wagoner said. He also was encouraged by statements from Democratic committee Chairm an Christopher Dodd, who expressed an interest in staying in Washington until a rescue plan can be put together. Dodd also said doing nothing "plays Russian roulette with the entire economy of the United States." Wagoner said he hopes a compromise can be formed from GM's plan and from the options suggested by committee members such as granting GM a portion of the loan and giving it a deadline to negotiate down its bond debt and get further concessions from the United Auto Workers union. "From our perspective, the direction was not uncomfortable for us because I thought it was kind of like, hey, that's the direction that we had assumed might be the kind of thing that would work for people," Wagoner said. "I hope it gets some momentum." Wagoner, joined by his counterparts Robert Nardelli, CEO of Chrysler LLC, and Alan Mulally, CEO of Ford Motor Co., went to Washington in an effort to get $34 billion in loans for all three companies. Chrysler and GM are dangerously close to the minimum amount of cash required to run their companies, leading UAW President Ron Gettelfinger to predict during the hearing that GM will not make it through December without government help. Wagoner said most of GM's parts suppliers have been working with the company during its cash problems, but some have not been as cooperative. "Broadly speaking our suppliers have stuck with us very, very well, and I appreciate that," he said. "I would say there are a couple situations we are managing." Wagoner was dismissive of a so-called "prepackaged" bankruptcy for GM, in which they would negotiate with creditors in advance and downsize, and then file for bankruptcy protection in hopes of emerging quickly as stronger companies. Wagoner said "for just being responsible and doing their fiduciary duty, management and the board has to be aware of all the options." But he called a prearranged bankruptcy "an option that we are trying to do everything we can to avoid." "If we can ... get the equivalent kind of financial restructuring and enactment of the plan that we have laid out in a process that avoids it, I think that's a good way to go for everyone involved," he said. He also would not speculate on suggestions from some in Congress that members of GM's leadership team should step down as part of any rescue package. "I'm doing what I do because it adds a lot of value to the company," Wagoner said. "It's not clear to me that experience in this industry should be viewed as a negative, but I'm going to do what's right for the company, and I'll do it in consultation with the (GM) board (of directors)." On their last visit in November, the CEOs were skewered by committee members for lacking specifics and for flying on separate private jets to beg for money. But this time, all three drove to Washington in hybrid vehicles after submitting detailed plans to justify their need. "We had very clear instructions and expectations this time as to what the committee was looking for, and our team worked very hard on what I think generally has been acknowledged as a quite complete plan, and so I think that set a tone that was somewhat different than last time," Wagoner said. He said that virtually all the questions from the committee were about the company's plan. "It seemed like a pretty constructive dialogue," he said. |
