Monday, March 16, 2009

Auto Task Force: Not Looking to Bankruptcy

President Barack Obama's automotive task force is focused on solving the industry's problems outside of bankruptcy and will likely continue to provide funding long after a pending March 31 deadline, the group's lead adviser told the Detroit Free Press.

Bankruptcy is not our goal," Steven Rattner said in a the newspaper inteview published Monday. "I've been in and around bankruptcy for 26 years as part of my private-sector work. It is never a good outcome for any company, and it's never a first choice."

Rattner also said the panel was committed to meeting the March 31 deadlines specified in loan deals with General Motors(GM Quote - Cramer on GM - Stock Picks) and Chrysler, but decisions on further aid could come later.

"It's entirely possible, in fact I think it's more than likely, that what you will see is not a single announcement at a point in time that's the beginning of the end of our policy efforts for the auto industry, but rather a series of actions over perhaps a reasonably long period of time to solve this problem," he said.

Additionally, Rattner said the task force is seeking ways to help auto- company suppliers survive....More

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