May 27th, 2009
01:42 PM ET

Down to the wire...

Program Note: Tune in tonight to hear more from Ali Velshi on AC360° at 10 p.m. ET.

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Ali Velshi | Bio
CNN Chief Business Correspondent

It's down to the wire for GM.

The nation's biggest auto maker has until Monday to come up with a viable plan to save itself, or the government will force it into bankruptcy like it did Chrysler.

But the time probably doesn't matter.

GM's bond holders (the people who lent the company money) refused a deal to swap their debt for part ownership in the ailing company.

GM paid its hourly staff today, instead of Friday, and word is many suppliers have also been paid, paving the way for the company to file for Chapter 11 bankruptcy protection before this week is out.

I'm on my way to a bar, ironically called "bamboozled" across from a GM plant in the Detroit suburb on Warren, to talk to workers about the fact that the end of their careers may be near.

Sadly, I have made this trip to Michigan too many times. I'm rarely here for good news.

The irony is that this trip WASN'T for the GM story; it was to go for a ride around the test track with Ford CEO Alan Mulally about his (somewhat successful) efforts to turn that company around. Right now, he's a bit of a shining light in Detroit.

We'll bring you parts of that discussion later this week.

Filed under: 360° Radar • Ali Velshi • auto bailout
soundoff (6 Responses)
  1. Carol Hines

    Do the so called experts have any common sense? I can't help wondering how obvious it is that GM doesn't need trucks and SUVs in Chevrolet, GMC, and Cadillac. That is a "no brainer" way to cut back, regroup or whatever you want to call it. I can't believe no one has ever mentioned this.

    July 10, 2009 at 8:09 pm |
  2. Karen

    Look how well that bail-out served Chrysler and General Motors.

    No amount of money can bail-out these companies. It's over. Give it up.

    If they go bankrupt. It's not the end of the world. Don't believe Bush, Obama and the rest of the cronies in Washington. Once they go to bankruptcy courts they can break all contracts, including the UNION contracts once and for all.

    I'm amazed how the Unions are now willing to talk when they see their own company on it's death bed. TOO LATE!!!!

    May 27, 2009 at 4:55 pm |
  3. JC- Los Angeles

    It has become quite apparent that America doesn't produce anything that people want to buy.

    Our nation was artificially kept afloat by egregious rate cuts, convoluted financial scamsand pure uncut mortgage fraud.

    It's now up to Timothy Geithner to create another financial scam to right our sinking ship.

    May 27, 2009 at 4:53 pm |
  4. Brandi - bottom of the boot

    Bamboozled? Definitely ironic, and not good news. I'm so sorry for the workers.

    May 27, 2009 at 3:48 pm |
  5. Mike, Syracuse, NY

    Ali, those workers you feel sorry for did this to themselves. The unions created an environment that could not compete. Bankruptcy will allow GM to break the onerous contracts and start over. I bet if the posted all the jobs they wanted to keep with benefits matching the Toyota and Honda plants in the south, they'd find people willing to work for those wages. Perhaps not the same people, but that's the law of supply and demand.

    May 27, 2009 at 2:30 pm |
  6. Isabel

    I read a news that Fiat would also be interested in GM, but his condition was also staying with the GM's operations in Brazil, which is the second most profitable in the world. Is this fact?

    May 27, 2009 at 1:57 pm |

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