Financial Times FT.com

Carmakers say bankruptcy more costly than bail-out

By Bernard Simon and John Reed

Published: February 18 2009 01:21 | Last updated: February 18 2009 01:21

Both General Motors and Chrysler insist that a series of cost-cutting measures will be sufficient to keep them out of bankruptcy protection, provided they receive billions more dollars in aid from the US government.

GM now says that it will need up to $30bn in government funds, more than double the amount it has received so far. But it said bankruptcy would be riskier and more costly than a bail-out.

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