Mar 30 2009
GM and Chrysler Still Facing Bankruptcy
The U.S. government has now forced GM’s CEO Rick Wagoner, to step down from his job and said bankruptcy is an option for both Chrysler and GM as it steps in to overhaul the auto makers.
An investigation by a government task force has determined that neither company has come up with a viable plan for survival. President Obama described the possibility of using bankruptcy as an option to help the auto makers survive.
President Obama said Monday that, the automakers can’t depend on an “unending” stream of taxpayer dollars, “we will not let our auto industry simply vanish.” The president will hold off granting Chrysler and GM the $21.6 billion in loans they requested last month.
Chrysler has announced this morning that they have a tentative deal with the Italian car company FIAT. If this deal takes place, Chrysler may get an additional $6 billion in funding from the U.S. government.
GM is expected to hold a news conference on Tuesday morning to respond to the White House’s rejection of the auto maker’s restructuring plan.
