President Obama on the Future of General Motors and Chrysler
President Obama announced this morning that the government will offer struggling auto companies GM and Chrysler a limited period of time to fundamentally restructure in a way that would justify an investment of additional taxpayer dollars. "While Chrysler and GM are very different companies with very different paths forward," the President said, "both need a fresh start to implement the restructuring plans they develop." The President also emphasized that:
We cannot, and must not, and we will not let our auto industry simply vanish. This industry is like no other -- it's an emblem of the American spirit; a once and future symbol of America’s success. It's what helped build the middle class and sustained it throughout the 20th century. It's a source of deep pride for the generations of American workers whose hard work and imagination led to some of the finest cars the world has ever known. It's a pillar of our economy that has held up the dreams of millions of our people. And we cannot continue to excuse poor decisions. We cannot make the survival of our auto industry dependent on an unending flow of taxpayer dollars. These companies -- and this industry -- must ultimately stand on their own, not as wards of the state.
The President spoke at length about the situations surrounding both companies. He said that while GM has made a good faith effort to restructure over the past several months, "the plan that they've put forward is, in its current form, not strong enough." As an initial step, GM announced today that CEO Rick Wagoner will be stepping down. The Obama administration will offer General Motors adequate working capital to continue operations for the next 60 days, during which time the administration will work closely with GM to produce a better business plan. The President added:
Let me be clear: The United States government has no interest in running GM. We have no intention of running GM. What we are interested in is giving GM an opportunity to finally make those much-needed changes that will let them emerge from this crisis a stronger and more competitive company.
In the case of Chrysler, the President explained that the situation was more challenging, and the determination had been made that Chrysler will need a partner to remain viable. To that end, the administration is providing Chrysler 30 days to finalize a potential deal with the international car company Fiat.
Finally, the President said:
Now, let there be no doubt, it will take an unprecedented effort on all our parts -- from the halls of Congress to the boardroom, from the union hall to the factory floor -- to see the auto industry through these difficult times. And I want every American to know that the path I'm laying out today is our best chance to make sure that the cars of the future are Buy Cialis built where they've always been built -- in Detroit and across the Midwest -- to make America's auto industry in the 21st century what it was in the 20th century -- unsurpassed around the world.