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WORLD> America
Make-or-break week for GM as deadline nears
(Agencies)
Updated: 2009-05-26 21:27

Make-or-break week for GM as deadline nears
New General Motors vehicles sit in a lot in Michigan. [Agencies]
Among other unresolved matters for the automaker:

? The question of its European unit Opel: On Monday German Chancellor Angela Merkel said the country hopes to loosen Opel's ties with General Motors before a possible bankruptcy filing. Merkel's government is looking at three bids and expects a decision on Opel's future midweek.

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Make-or-break week for GM as deadline nears GM dealers expect word on shop cut plan
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? It's still not clear what will happen with the Saturn, Hummer and Saab brands. GM has said it plans to phase those brands out or sell them.

President Barack Obama said in an interview broadcast Saturday on C-SPAN he had hope for the ailing GM and Chrysler LLC, which is restructuring under Chapter 11 bankruptcy protection. He said the administration could not let either company simply shutter, which is why it had to intervene.

The president said he had faith in GM's efforts and it would "be a strong company, and we are going to be pulling out as soon as the economy recovers and they've completed their restructuring."

But first, the company has to get through this week, said Tom Libby, an independent Detroit-area auto industry analyst. It's not likely the deadline will be extended, he said.

"This is the make-or-break week," he said. "It appears Mr. Obama's sort of modus operandi is to not keep postponing and postponing."

 

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