National Press Release

SOUTHFIELD, Mich., Feb. 18 /PRNewswire/ -- The debate about the viability of the domestic automakers and their suppliers is about to be joined by a new voice: auditors.

According to Grant Thornton LLP's Corporate Advisory and Restructuring Service, it is possible that a number of publicly traded companies in the automotive industry could receive what is called a "going concern opinion" from their auditors -- a statement that there is substantial doubt about the entity's ability to continue as a going concern. But that doesn't necessarily mean the domestic auto industry can't be successfully restructured.

"It's important for the public, the supply base and all of the parties involved in restructuring the auto industry not to overreact if they start seeing 'going concern' opinions," said Kimberly Rodriguez, co-leader of Grant Thornton's global automotive team and a principal in the firm's restructuring practice. "We're in uncharted waters and auditors face extremely difficult decisions, but we believe the amount of direct government aid to the auto industry, the size of the economic stimulus package and the radical restructurings GM, Ford and Chrysler are undertaking will ultimately help salvage the industry."

The opinions will be included in Form 10-K annual reports, which must be filed with the Securities and Exchange Commission within 60 to 90 days of the end of a company's fiscal year, depending on its size and other factors. That means many companies will file their 10-Ks at the same time the government is considering the viability of Chrysler LLC and General Motors Corp.

"The country's automotive assets are capable of delivering tremendous value, and that will be readily apparent when demand recovers," Rodriguez said. "The automakers were making huge strides to improve their products and reduce their cost structures well before the credit markets froze and the recession intensified. The deeper restructuring that is now underway will position them to be successful even at very low industry volumes. All of this suggests that the best thing we can do in the 10-K season is keep a level head."

About Grant Thornton LLP Corporate Advisory and Restructuring Services

Grant Thornton's Corporate Advisory and Restructuring Services launched its U.S. practice in 2006 and has grown to include more than 85 professionals in eight offices, serving more than three dozen clients. The Corporate Advisory and Restructuring Services team works with underperforming and transitional companies and their stakeholders. They quickly evaluate the financial and operational issues adversely affecting performance, assess the strategic alternatives and develop and execute comprehensive plans to address the challenges. Grant Thornton's world class advisory team delivers in-depth evaluations and balanced insight through a comprehensive, holistic approach.

About Grant Thornton LLP

The people in the independent firms of Grant Thornton International Ltd provide personalized attention and the highest quality service to public and private clients in more than 100 countries. Grant Thornton LLP is the U.S. member firm of Grant Thornton International Ltd, one of the six global audit, tax and advisory organizations. Grant Thornton International Ltd and its member firms are not a worldwide partnership, as each member firm is a separate and distinct legal entity.

In the U.S., visit Grant Thornton LLP at www.GrantThornton.com

SOURCE Grant Thornton LLP