Posted on 03/29/2009 9:31:09 PM PDT by skinkinthegrass
WASHINGTON — The White House says 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.
(Excerpt) Read more at chron.com ...
If the CEO of GM is forced to resigned, why not the UAW?
...too bad we can't force those culpable government agencies
(enforcing CAFE Std. / EPA et.al.) to do the same.
MARCH 30, 2009, 12:04 A.M. ET
Task Force Says GM Can Bounce Back With Changes
In its memo on the company, the task force also said that the majority of GM’s directors would be replaced and that Kent Kresa, a long-time director, would serve as interim chairman.
Despite the pessimistic view on GM’s restructuring plan, members of the task force said they are “confident that with a more fundamental restructuring, GM will emerge from this process as a stronger more competitive business.”
To help the GM, the Administration will provide it with working capital for 60 days to develop a more aggressive restructuring plan and a credible strategy to implement such a plan.”
http://online.wsj.com/article/SB123838449463268709.html?mod=googlenews_wsj
Who’s gonna pick the new CEO? Obama? Communism has arrived.
Good-bye U.S. auto industry. Control over production is almost complete. First the banks and now the cars then health. And Americans willingly voted for their own destruction.
Tell Obama to pound sand.
US to Guarantee GM, Chrysler Warranties Amid Restructuring
The Obama administration said it would guarantee warranties on General Motors Corp. and Chrysler LLC vehicles to help mitigate any drop in sales that could occur as they undergo the tough restructuring measures recommended by the government.
The fund that will be set up will cover 125% of the expected cost of future warranty repairs to ensure enough money is available for all repair claims. GM and Chrysler will contribute 15% of the amount required in cash, with government loans providing the rest.
http://online.wsj.com/article/SB123838536264268763.html?mod=googlenews_wsj
That's a rhetorical question, right? And, you ask it in the future tense. Rest assured, the successor has already been selected. Someone from GM will step up, temporarily. But, soon a permanent replacement will be made and you can't bet a month's pay they're an Obama donor.
So when do I get my tax money back from the first failed bailout?
The Obama administration, however, has decided not to require the automakers to immediately repay government loan money they previously received, since that would force both companies into Chapter 11 bankruptcy.
A senior administration official told FOX News, “calling in the loans would not be a productive exercise for the American taxpayer since the companies don’t have the money [to repay the loans] and it would simply put the companies into uncontrolled Chapter 11.”
Obama was set to make the announcement at 11 a.m. Monday in the White House’s foyer.
Instead, the administration has decided to give Chrysler 30 days to work out a deal with Fiat and GM 60 days to come up with a new restructuring plan. Both companies will be provided with “some working capital” during those time periods.
A senior official said, “bankruptcy is not the goal,” although there may be a “role for a court supervised process to effect the restructuring... different from Chapter 11.”
Two additional parts of the plan include the government standing behind both car companies’ warranties during the restructuring periods and the White House naming a Labor Department official to minimize the impact of restructuring on communities where auto plants are located, by coordinating support for workers and their families.
GM and Chrysler, which employ about 140,000 workers in the U.S., face a Tuesday deadline to submit completed restructuring plans, but neither company is expected to finish its work.
GM owes roughly $28 billion to bondholders. Chrysler owes about $7 billion in first- and second-term debt, mainly to banks. GM owes about $20 billion to its retiree health care trust, while Chrysler owes $10.6 billion.
ZerO is going to give them a lot more zeroes, plus a positive integer in front of the zeroes.
he has no interest in stopping this craziness.
"So this is how democracy dies--to thunderous applause. 
good prediction, right on the mark
Then anotehr and another.
Libs always want to subsidize loseers, mainly because they are people libs can relate to.
The Obama administration, however, has decided not to require the automakers to immediately repay government loan money they previously received, since that would force both companies into Chapter 11 bankruptcy.
I’m not a fan of the illegal-alien communist usurper Obama, but I can’t find anything to criticize in this auto industry decision.
And what plan did AIG submit to warrant a bailout 10 times the size of GMs?
GM and Chrysler were finished before Obama came around.
They got their first round of welfare under a Republican President.
And the losers produce what the market does not want but the libs will force you to own it anyway
Locked and loaded here
I guess Obama has other plans...
His alligator mouth is making guarantees his hummingbird butt can’t deliver.
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