The Obama Administration is rejecting the viability plans GM and Chrysler were required to submit by March 31, 2009. They are giving Chrysler 30 days to arrange a merger with Fiat. GM is getting 60 days to do a complete restructuring. GM CEO Rick Wagoner has resigned at the request of the Obama Administration. There does not seem to be any criticism of the UAW from the Obama Administration. The UAW was a strong supporter of Obama during last years Presidential election. There was a requirement for the UAW to accept wages and benefits comparable to the transplant auto factories. So far, little progress has been made on that issue. Due to the intransigence of the UAW, bondholders have balked at writing off large portions of GM’s debt.
GM, Chrysler have no ‘viable’ plans: US task force
General Motors and Chrysler have failed to lay out viable plans for their ailing companies, the White House said Monday, in a tough review which could shake up the nation’s key auto industry.
In two separate reports, a task force set up by President Barack Obama analyzed the future prospects for both companies and warned they had failed to comply with the terms of a 17.4 billion dollar government bailout.
Obama is due to unveil his plan for the future of the key industry at 11:00 am (1500 GMT) Monday with both companies seeking an additional 21.6 billion dollars to survive the economic downturn which has sent global car sales plunging.
The task force concluded both companies had failed to meet the conditions for the bailouts by a March 31 deadline, and as a result neither company had “satisified the terms of its loan agreement.” (excerpt) read more at breitbart.com
via: bluegrasspundit
