Automakers Being Encouraged To File Bankruptcy

According to an article at FREEP.com, Thomas Donohue, the head of the U.S. Chamber of Commerce is encouraging U.S. automakers (Ford, GM and Chrysler) to file bankruptcy.

Donohue said:

“If it were me, I would play that card…(referring to bankruptcy) I said it because maybe they can’t say it. If all else fails, they are not going to have a choice.”

We all know that bankruptcy can help individuals recover from financial blows; but the automakers took taxpayer money with the promise that they could become viable and save American jobs. Already they have broken one of those promises, laying off thousands of workers who will now face risk of bankruptcy and foreclosures because of no income.

But all of that aside, what would a bankruptcy for just one of the big three automakers look like for the American worker? Mass layoffs? More foreclosures? More personal bankruptcies? We know that the economy is not creating the jobs needed to replace often high-paid manufacturing positions found at these automakers. What will happen to these people?

By | 2017-12-13T02:03:52+00:00 February 15th, 2009|High-Profile Bankruptcies|Comments Off on Automakers Being Encouraged To File Bankruptcy