Lutz says bankruptcy not in the cards for GM

In a press briefing at the North American International Auto Show today, GM's outspoken vice chairman Bob Lutz flatly stated, "There is no plan for GM to become bankrupt."

Lutz's denial of bankruptcy plans came on the heels of similar statements by CEO Rick Wagoner on Sunday, and were reinforced by Goldman Sachs analyst Robert Barry today.

GM's stock responded nicely to the positive news (or maybe it was the Camaro concept) to end the day up nearly 8 percent.

Lutz, always good for a quote, recalled his experiences at the other members of the Big Three, saying, "You talk about near bankruptcy. I've seen bankruptcy situations. And this ain't one of them."

Regardless of the optimism at the top, GM's supertanker will take a long time to make the turn to growth and profitability. 2006 will be tough.

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