GM Prez to Step Down on Eve of Auto Bailout Plan
The questions are already out there as to whether there was an understanding between the Obama Administration and GM that more bailout $$’s were contingent on Wagoner’s resignation:
The move comes on the eve of President Obama unveiling his plan to reinvigorate the U.S. auto industry. Obama and other administration officials have said they would demand deeper restructuring from General Motors Corp. and Chrysler LLC before they would get any more government loans.
BREAKING NEWS UPDATE: According to the McClatchy News Group, President Obama will deny Chrysler and GM additional bailout funds because the companies have failed to take the required steps to come up with a workable survival plan, but will provide some additional operating funds and a warranty program to make consumers feel comfortable about buying Chrysler/GM products:
The government sought the departure of GM chief Rick Wagoner and said the company needed to be widely restructured if it had any hope of survival. It said it would provide the company with 60 days operating capital to give it time to undertake reforms.
The government will grant Chrysler 30 days operating funds, but said it must merge with another carmaker in order to remain viable. Talks with Italian carmaker Fiat are underway.
The administration also announced a warranty guarantee plan that administration officials hope will give consumers enough confidence that they will continue to buy the companies’ vehicles.
Tags: Bailouts
Chrysler isn’t a U.S. company….how does it qualify for government loans? Is Germany ponying up will matching funds?
More from the AP.
This says that Wagoner is gone as part of an agreement with the White House over automaker restructuring. And more management changes may be coming.
Isn’t it interesting that the auto companies are much more accountable than the banks.
And at least the Auto Industry hasn’t made the rest of the economy go in the dumper like the banks either