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GM, Chrysler Recovery Will Take Time, Rattner Says
Steven Rattner,the former head of the federal government’s auto task force, said a successful recovery for General Motors Co. and Chrysler Group LLC is “far from assured” and will take time.
The comments may add pressure on GM and Chrysler to redouble restructuring efforts after the companies emerged from bankruptcy. GM chose a new U.S. sales chief this month, and Chief Executive Fritz Henderson said GM was “on path” to reach its financial goals. Chrysler will unveil its plan Nov. 4.
For GM, “the over-arching question mark is whether without an infusion of new blood its management team can implement the massive cultural change that is needed,” Rattner said. Chrysler’s biggest challenge is its need to regenerate its product lineup and manage a “significantly leveraged” balance sheet, he said.
Rattner said it would also take time for the government to sell its stakes in both companies. He said the government has given GM and Chrysler the tools to be successful and provide good returns for their investors.
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Posted by card99012 on 2009-10-22 10:27:44 | Rating: | Views: 16
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