Thread: Can a gov't capital injection into GM, Ford, and Chrysler keep it afloat?

Or will it be a sunk cost if they file for bankruptcy.

no but putting out quality PRODUCTS will keep them afloat.

The plan is to give the auto makers money for retooling and research for the development of more fuel-efficient vehicles, so they can compete with foreign manufacturers. This will prevent the companies from having to file for bankruptcy. They can also file Chapter 11 bankruptcy, which allows them to reorganize and continue operating, as opposed to Chapter 7 bankruptcy, which is also called liquidation bankruptcy.

So, if the automakers do not have the capital to operate beyond the end of this year, they can file for Chapter 11 bankruptcy and basically stay afloat until the Obama administration approves a bail-out package for them.