DETROIT — General Motors Corp.’s new chief executive said Monday there’s a greater risk that the company will have to reorganize through bankruptcy because of greater demands from the Obama administration to get debt off its balance sheet.
Fritz Henderson told reporters on a conference call that the company would still prefer to restructure outside of court, but the various support mechanisms President Barack Obama outlined Monday would provide a better cushion for the company to reorganize under a court-order bankruptcy if necessary.
“We were encouraged. We talked to the auto task force about ultimately bringing the consumer back in the game,” he said.
Obama said he would give GM additional days to pre sent and make progress on restructuring plans that are expected to go further than what was submitted in February. He also introduced a program that would guarantee warranties of GM and Chrysler LLC vehicles going forward and would allow people purchasing new cars this year to write off the sales and excise taxes on the vehicles.
“We understand what the game plan is,” Henderson said. “Whether out of court or in court, either way, they’ll be there to support us.”
It was Henderson’s first day on the job after Rick Wagoner resigned at the government’s request.
Former board member Kent Kresa, the former chairman and chief executive of defense contractor Northrop Grumman Corp., was appointed as the interim chairman of the GM board.
