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November 25th, 2008
03:41 PM ET

Sync, and Swim Together

Daniel Kahneman and Andrew M. Rosenfield
The New York Times

THE chief executive of General Motors recently said bankruptcy is not an option and that even talking about it hurts business. He is probably right.

Bankruptcy has worked well for troubled companies in many industries — by providing a way for them to adjust their contractual arrangements with investors, employees, suppliers, distributors, dealers and others. But it is not well suited to automakers because cars are durable goods that buyers hold and use for many years. Indeed, 8 in 10 consumers say they would not buy or lease a car from a manufacturer that files for bankruptcy.

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soundoff (One Response)
  1. Bruce Brungard

    I am a GM retiree who had 30 yrs of faithful service. During those 30 yrs I saw a lot of GM workers driving foreign as well as other domestic autos. I wonder how those workers feel about their previous purchases. Even having a used vehicle from another company is bad advertising for your employer. Maybe those employees should ask the foreign companies if they have any extra cash to support their pensions!!

    December 5, 2008 at 3:11 pm |

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