Treasury Secretary could force General Motors and Chrysler LLC into bankruptcy

The U.S. Treasury Secretary is taking a tough stance on North American automakers General Motors and Chrysler LLC, and could force them into bankruptcy if they can’t show that they can survive without aid from the U.S. government.

According to Carl Levin, a Democrat from Michigan, Chrysler and GM will have to submit their viability plans by March 31; otherwise they could lose any further support from the government. The plan that the U.S. Treasury will come up with, will be much like the one that was passed by the U.S. House last week.

General Motors Corp. and Chrysler LLC are seeking $14 billion for their operating costs for the first quarter of 2009. Both automakers have said that without an injection of cash from the U.S. government, then they could be weeks away from insolvency.

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