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From Senator Richard Shelby (senior Republican on Banking Committee): "I don't think they (automakers) have immediate plans to change their model, which is a model of failure”. “I believe their best option would be some type of Chapter 11 bankruptcy". "These leaders have been failures and they need to go."
Representative Barney Frank (Democrat from Massachusetts) pointed out that choosing the bankruptcy option would likely mean abrogation of labor contracts. "We already have too much union busting,"
The leaders of the auto industry insist that bankruptcy is not an option. Serious reorganization is painful, but that is the way we are headed. The U.S. auto industry is not going to just disappear, but it could be smaller and look very different a few months from now.
Related Article:
Why a Big Three Bailout is Driven to Fail


