Former United States Vice President recently disclosed that the GM bankruptcy has long been predicted and the Bush administration had to let it’s time pass before letting the car manufacturer declare a chapter 11.

General Motors has been staying afloat all this time because of financial backing from the federal government until it ultimately needed to file for a bankruptcy last week.

Cheney revealed the matter during an interview with Fox News and said that Bush just did not want to pull the plug on the automaker which has been one of the pillars of the U.S. car industry.

According to him the government knew about the struggle of GM and has foreseen that eventually the carmaker will need to go through bankruptcy and some restructuring and renegotiate their contracts in order to survive.

The former second in command disclosed that the Bush administration worked on putting a package so it can keep its head above the water until the new administration takes over. The plan included the original bailout fund of $17.4 billion which gave Barack Obama’s team to have some buffer before addressing the issue and the eventual bankruptcy of General Motors.

The new GM will be re-emerging in about three months with the government of the United States having a 60.8% stake. The car manufacturer will be facing a multi-billion consolidated debt but is in shallower waters compared to the liabilities if they have not declared chapter 11.

General Motors, GM, Government