Videocrux - Obama criticizes automakers' restructuring plans

#Videocrux - Obama criticizes automakers' restructuring plans Obama criticizes automakers' restructuring plans
Barack Obama criticized the restructuring plans developed by General Motors and Chrysler on Monday. He demanded that the two automakers present more viable solutions with the understanding that bankruptcy is a real possibility if they fail. The White House is displeased with the auto industry, and Detroit is feeling the heat. On Sunday at President Obama’s insistence, Rick Wagoner stepped down as the CEO of General Motors. This was the beginning of the administration’s stern response to the company’s failure to develop a viable recovery plan quickly, after receiving huge amounts of federal assistance. On Monday the administration presented its own solution to US automakers. GM’s new leaders have 60 days to present the administration with a fresh restructuring plan. And Chrysler has 30 days to finalize an agreement with the Italian automaker FIAT, a partnership that should allow the company to overhaul a large portion of its line of cars. While Obama promised that the American auto industry won’t disappear on his watch, he also stressed accountability. OBAMA, “My administration will offer GM and Chrysler a limited additional period of time to work with creditors, unions and other stakeholder to fundamentally restructure in a way that would justify an investment of additional tax payers dollars. There are quite a lot of taxpayer dollars involved: GM and Chrysler already received 17 billion in December, and now are asking for 20 billion more. They now have new rules to play by, though, and Obama has issued a warning: if GM and Chrysler don’t comply, bankruptcy will become inevitable, and with it a loss of American jobs.
Obama displeased with auto industries
The White House is displeased with the auto industry, and Detroit is feeling the heat. On Sunday at President Obama’s insistence, Rick Wagoner stepped down as the CEO of General Motors. This was the beginning of the administration’s stern response to the company’s failure to develop a viable recovery plan quickly, after receiving huge amounts of federal assistance. On Monday the administration presented its own solution to US automakers.
Obama to stresses on accountability
GM’s new leaders have 60 days to present the administration with a fresh restructuring plan. And Chrysler has 30 days to finalize an agreement with the Italian automaker FIAT, a partnership that should allow the company to overhaul a large portion of its line of cars. While Obama promised that the American auto industry won’t disappear on his watch, he also stressed accountability.
The president issues a warning
OBAMA, “My administration will offer GM and Chrysler a limited additional period of time to work with creditors, unions and other stakeholder to fundamentally restructure in a way that would justify an investment of additional tax payers dollars. There are quite a lot of taxpayer dollars involved: GM and Chrysler already received 17 billion in December, and now are asking for 20 billion more. They now have new rules to play by, though, and Obama has issued a warning: if GM and Chrysler don’t comply, bankruptcy will become inevitable, and with it a loss of American jobs.

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