GM might be down, but it’s not out. According to its new CEO bankruptcy might not be a foregone conclusion.
When asked on NBC's "Meet the Press" if bankruptcy was inevitable, Fritz Henderson, who replaced Rick Wagoner as CEO about a week ago, said it was not. He said he intended to meet the administration's demand to move more rapidly and to cut more deeply.
"We are planning to get the job done. Our preference would be to do it outside of the bankruptcy process," Henderson said.
However he also went on to say, "if it cannot be done outside a bankruptcy process, it will be done within it."
Advocates of bankruptcy claim bankruptcy does more for GM than solve financial problems; it allows the auto giant to become much more competitive with Toyota and other rivals.
That’s because a bankruptcy would probably involve splitting GM into 2 parts – a bad GM which would be liquidated - and a good GM made up of Chevrolet, Cadillac and other brands – which would emerge stronger.
However opponents of bankruptcy such David E. Cole, chairman of the Center for Automotive Research in Ann Arbor, Michigan say Americans view bankruptcy as a sign of failure – plain and simple.
On the websiteistockanalyst, he argues that the negative image attached to bankrupt companies would make it impossible for dealers to sell cars.
And that leads to our Fast Money Reader Poll.
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CNBC.com with wires