April 5th, 2009
10:30 AM ET
5 years ago

Stabenow: Bankruptcy should not be an option for auto industry

(CNN) - Bankruptcy for the nation's largest auto companies should not be an option, Michigan Sen. Debbie Stabenow told CNN Sunday.

In an interview with CNN's John King on State of The Union, the Michigan Democrat said she supports the Obama administration's commitment to the auto industry as it tries to formulate a viable business plan to move forward.

"I do not support bankruptcy, certainly as the first, second, or third options," Stabenow said. "I am still very concerned, because… there are 600,000 retirees whose pensions, by the way, would become a federal liability in the worst case scenario in a bankruptcy."

"There are tens of billions of dollars, I've heard upwards of $80 billion in federal requirements, federal dollars that would be needed potentially, if they went into bankruptcy," she continued. It certainly is not my first option. And I know that it's not the first option of the administration."

But Sen. Bob Corker, R-Tennessee, also appearing on CNN's State of the Union, said bankruptcy is a possibility for the beleaguered auto companies.

"I do disagree with the government just coming in and taking over a company like this. I think that was heavy-handed," Corker said in reference to the administration's request last week that former GM CEO Rick Wagoner resign his post. "I think that is something that we'll look back on in several years and be very concerned about but I hope they are successful."

In an interview that appeared on CNN's State of The Union earlier Sunday, GM's new CEO Fritz Henderson suggested bankruptcy remains a possibility for his struggling company.

"[Bankruptcy] may very well be the best solution for the company," he said.


Filed under: Bob Corker • Debbie Stabenow • State of the Union
newer posts »