DETROIT — General Motors Corp.’s new chief executive said Tuesday that more of the automaker’s plants could close and that bankruptcy is “more probable” as GM works to meet new, tougher requirements for government aid.
In his first news conference as CEO, Fritz Henderson said he expects the company will “need to take further measures” beyond the five plants the company said it would shutter when it submitted a restructuring plan to the government last month.
GM also is likely to offer another buyout program to workers as it looks to cut labor costs, Henderson said.
President Barack Obama said Monday that GM’s initial plans to become viable didn’t go far enough. He gave the company 60 days to make more cuts and get more concessions from bondholders and unions or it won’t get any more government help.
The Obama administration also asked former CEO Rick Wagoner to resign, and Henderson took over as CEO on Monday.
Henderson said that although GM would prefer not to use bankruptcy protection to save itself, it is “certainly more probable” than in the past.
The company, he said, has until June 1 to accomplish changes sought by the government, or it will be in bankruptcy. The 60-day deadline should be enough time, but if the changes can’t be made by the deadline, GM could go into court sooner, Henderson said.
“It doesn’t have to take 60 days. If it’s quite clear that we’re not able to accomplish what we need to do in terms of operational restructuring, reduction of debt on the balance sheet and what we need to do . . . this will be a management judgment” reviewed by the Obama administration’s auto task force, he said.
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