General Motors (GM) and Chrysler LLC are struggling mightily to stay out of bankruptcy court. With roughly $20 billion in loans from the U.S. and some very tight deadlines, they're scrambling to settle their broken promises to unions and bondholders before a bankruptcy judge does it for them. But their broken promises to customers and shareholders are the biggest threat to their long-term survival.
General Motors -- which just got $500 million more of our money on April 24th -- now has $15.4 billion in loans from the U.S.. It just announced that will kill the Pontiac brand by 2010 and will keep only Chevrolet, Buick, GMC and Cadillac. And it now wants $11.6 billion more in U.S. loans. While its February viability plan forecast 11.5 million to 12 million vehicles sold in the U.S. for 2009, it's now claiming that cutting Pontiac will let it break even on 10 million units.