GM HEADS FOR THE REMODELING - AT 7:52 A.M. ET:  From The New York Times:

DETROIT — The Treasury Department is directing General Motors to lay the groundwork for a bankruptcy filing by a June 1 deadline, despite G.M.’s public contention that it could still reorganize outside court, people with knowledge of the plans said during the weekend.

Members of President Obama’s automotive task force spent last week in meetings and on conference calls with G.M. officials and its advisers in Detroit and Washington. Those talks are expected to continue this week.

The goal is to prepare for a fast “surgical” bankruptcy, the people who had been briefed on the plans said. G.M., which has been granted $13.4 billion in federal aid, insists that a quick restructuring is necessary so its image and sales are not damaged permanently.

COMMENT:  Not damaged permanently?  What do these boys think is happening right now?  The damage to GM's image is overwhelming.  It will take years to repair, if it can be repaired at all.  It will take financial backing, but it will also take great engineering and great cars.  The best thing would probably be for GM to get the bankruptcy behind it, and to try to break free of federal control.  Possible?  Maybe.  But maybe not.  This will be a struggle.

April 13, 2009