Obama: Bankruptcy Solution the Best Option for GM, Chrysler

President Barack Obama has determined that a prepackaged bankruptcy is the best way for General Motors Corp (GM) to restructure and become a competitive automaker, people familiar with the matter said.

Obama also is prepared to let Chrysler LLC go bankrupt and be sold off piecemeal if the third-largest U.S. automaker can’t form an alliance with Fiat SpA, said members of Congress who have been briefed on the subject and two other people familiar with the administration’s deliberations. [via Bloomberg]

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