Granholm: Without Bailout in Dec., 'Game Over' For GM

Michigan Gov. Jennifer Granholm (D) said that General Motors needs a government loan this month to survive.

Granholm, on CBS on Monday, noted GM's willingness to accept any of Congress's terms on a rescue deal, pointing to the company's full-page ad in the Wall Street Journal seeking help.

"But if General Motors doesn't get this loan by the end of this month, it is game over," she said.

Granholm said that GM's collapse would set the country back in its quest to become energy independent. She also dismissed the notion that bankruptcy or the dismissal of GM executive Rick Wagoner would be enough to save the company. Consumers won't purchase a car from a bankrupt auto company, she said.

"They're not going to trust that they will have access to parts, to warranty, et cetera," said Granholm.

And the fall of the U.S. car industry would lead to more lost jobs in other sectors, she added.

"This is 3 million jobs," she said. "This is more than just the auto industry. It's those suppliers who feed into that industry all across the nation. It's the steel industry, it's the textile industry, it's the plastics industry, it's the micro chip industry, it's the railroad industry. This is the backbone of manufacturing."

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