If GM joins Chrysler in bankruptcy, which is more likely to survive?

Updated

So, it appears that the Obama administration is not going to force General Motors (GM) into bankruptcy next week after all. We will now find out the results of the automaker's restructuring on June 1. That's several days later than the Washington Post had earlier reported. The plan is that the government would provide the company just short of $30 billion in new federal loans.

GM must demonstrate to the government task force that is overseeing both the GM and the Chrysler restructuring that it can be viable without the government's help or it will face bankruptcy. An Obama administration official said yesterday, "I think that in terms of the outlook, I'm not going to speculate on the bankruptcy question, but I will say that the administration is committed . . . to standing behind GM and is confident that the company will be able to restructure over a short period of time."

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