Bloomberg's report today that there is indeed legislation ready to bailout automakers carried a bigger incentive for cooperation than was previously reported.
The 'car czar' will have the ability to force GM and Chrysler LLC into Chapter 11 bankruptcy if the companies don't come up with a restructuring plan by March 31. Critics of the proposed legislation have worried that the 'czar,' as a political appointee, will lack the gravitas needed to force the companies into behavior that will kick-start the flow of revenue and profits. GM and Chrysler have stated that they need a minimum of $14 billion in combined aid to continue their operations through the end of March.
In other developments, it appears that the bailout measure is missing enough support to pass in the Senate. As a result, look for amendments to the bill.