Tough love for GM

Tough something, anyway. Two good pieces from NPR Morning Edition making the case for Chapter 11. Go have a listen.

Bankruptcy Could Help Fix Automakers’ Problems

President-elect Barack Obama wants to give U.S. automakers federal funds. Critics say funding without conditions would be like pouring gas into a broken-down clunker. Paul Ingrassia, a former Detroit bureau chief for The Wall Street Journal, says bankrupty might be a better option. He tells Ari Shapiro that bankruptcy could open the door to badly needed changes.

Professor: GM Must Confront Financial Challenges

Advocates for the nation’s automakers are warning that the collapse of General Motors could set off a catastrophic chain reaction in the economy. Douglas Baird, a professor at the University of Chicago Law School, says in order to fix its financial problems, GM needs to confront its challenges head on. Baird tells Ari Shapiro that getting a bailout won’t solve the car companies’ problems.

Meanwhile, GM’s website offers me a great deal ($54,608.39) on a Hummer. Feed ’em to the sharks. And the Chevy Volt? Gimme a break. I like the underlying series-hybrid technology, but look, this is GM. Surely somebody else will come and do it right.

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No wonder GM expects to sell only 10,000 (at $40K a pop, it seems) … in 2010.

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