Community | March 30, 2009 | 7 comments

Obama unveils new plan for autos industry

source: http://www.msnbc.msn.com/id/29944834/

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WASHINGTON - President Barack Obama unveiled a new plan to help the U.S. autos industry Monday, saying the failure of the industry is not the fault of its workers but a “failure of leadership” in Washington and Detroit.

In a White House speech, Obama said the companies — and the auto industry — must stand on their own, not as “wards of the state” supported by tax dollars.

GM will get 60 days worth of financing to restructure, while Chrysler is getting up to $6 billion and 30 days to complete a deal with Italian automaker Fiat. The Obama administration also replaced GM CEO Rick Wagoner with the company’s chief operating officer, Fritz Henderson.

If the companies fall short, Obama raised the specter of using bankruptcy laws to force their restructuring.

Obama sent a blunt message to Detroit automakers: To survive — and win more government help — they must remake themselves top to bottom. Driving home the point, the White House ousted the General Motors chairman as it rejected GM and Chrysler’s restructuring plans.

Over the weekend, the White House said neither GM nor Chrysler submitted acceptable plans to receive more bailout money, setting the stage for a crisis in Detroit and putting in motion what could be the final two months of two American auto giants.

End of Excerpt

Source: MSNBC

For full text of Obama's Speech go here
http://www.nytimes.com/2009/03/30/us/politics/30obama-text.html
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7 comments // Obama unveils new plan for autos industry

  • Johnll
    • 0
      Johnll  

    • I believe that Obama should let GM and Chrysler declare bankruptcy, look at Ford they are not receiving any bailout money. And they seem to be doing just fine. Let the auto makers change jobs,and learn something new like the rest of us. ( Enough bail-outs, already! and be patient with the prez.)

    • 3 years ago
  • csmonut
    • 0
      csmonut  

    • If they hadn't been in bed with the oil companies for so many years, they'd be in business and producing the products people want. Rather they spent billions on advertising gas hogs, convincing people that that everybody was driving a Suburban, etc.
      I know people should be a bit wiser about what they buy, but billions have been spent learning how to get the public convinced that everybody is doing it. And it works.

    • 3 years ago
  • pjacobs51
  • Johnll
  • sickinjersey
  • pjacobs51
  • neocongo
    • 0
      neocongo  

    • I'm good with this. We're shedding 650,000 jobs per month and badly need to keep our big industries alive, but at the same time, they need to produce, and they need to produce useful products.

      While it feels good to bitch, the average Joe (or Jan) is clueless as to the result of letting the financial and banking sector collapse as well.

      America would become one big tent city.

    • 3 years ago
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