Granholm: No Bankruptcy, No Housecleaning DEARBORN, MICH. (Michigan Radio) - Many economists in recent days have said General Motors could emerge a stronger company if it files for bankruptcy than if it takes a government bailout.

But Governor Granholm today took issue with that viewpoint. She says the entire industry would crumble if GM entered Chapter 11 protection.

"If GM is not buying from suppliers, those suppliers are supplying to the rest of the industry too," she said. "It is a ripple effect throughout the industry if we allow General Motors to declare bankruptcy, number one. Number two, people will not buy cars from a bankrupt automaker. They just will not."

Granholm also dismissed suggestions that Detroit's Big Three should have to get rid of their leadership in exchange for a federal bailout. She says all three have taken major steps to reorganize their companies.

Contact Sarah Hulett at sarahhu@umich.edu
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