LyrArc Article Gist
GE's Jack Welch on a preplanned bankruptcy with government financial, and debtor in posession financing including finacially backing all car warranties, as the best solution to the GM and Chrysler crisis. Will it be tough? Jack Welch says this task would be at the outer limit of difficulty and leaders may balk at leading such painful change, but it is necessary. He says for the sake of self-respect, national defense, and jobs, the country needs to keep the auto industry, and even after the loss in market share during the transformation ahead GM and Chrysler could still have 25% of the market. This is the first time a seasoned veteran of American industry of the stature of Welch, who is known for tackling such problems with realism, gives his approach to the auto companies problems. He sees the problem with a bailout with strings attached as simply letting the Big Three heave along basically as they are on life support, because a bailout simply won't enable the transformative change required.