GM's new chairman says bankruptcy a 'possibility' - KWWL - Eastern Iowa Breaking News, Weather, Closings

GM's new chairman says bankruptcy a 'possibility'

WASHINGTON (AP) -- General Motors' interim board chairman says bankruptcy remains a "possibility."

Kent Kresa says he would not look forward to a bankruptcy filing, preferring a "more predictable process." But he says the company has not reached the cost-cutting agreements it needs and must work quickly with the United Auto Workers union and bondholders.

Kresa has been a GM board member since 2003. He was named interim chairman in a major shake up of the company engineered by the Obama administration over the weekend. The White House removed chief executive Rick Wagoner and rejected the company's restructuring plan, giving it 60 days to develop a more aggressive approach.

Kresa says the board "had been very positive" about the steps Wagoner was taking, but he says "the depths of the market decay" came as a surprise. He says, as GM chairman, he'll consult with the Obama administration as he finds new directors the automaker. But he expects to have "significant leeway" because he says the government isn't interested in running the process.

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