Released: November 19, 2008

Consumers to suffer if GM goes under

Source: Chris Isidore, CNNMoney.com

A bankruptcy of one of the Big Three automakers could hit American consumers hard, industry experts warn.

General Motors (GM, Fortune 500) said on Nov. 7 that it will run out of the cash it needs to operate late this year or early next year. On Tuesday, Chrysler LLC CEO Robert Nardelli told the Senate Banking Committee his firm is also at risk of running out of cash. He and the CEOs of GM and Ford Motor (F, Fortune 500) are seeking financial assistance from the federal government.

Executives at GM have repeatedly maintained that bankruptcy is not an option, and Nardelli said his firm also wants to avoid a filing. But there is enough opposition to a bailout to make a bankruptcy, or even outright failure, of two of the nation’s largest automakers a serious risk in the coming two months.

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