Obama Says GM, Chrysler Have Last Chance to Survive

Article by John Hughes, Jeff Green, and Doron Levin
Posted by Kaitlin Lanier

President Barack Obama gave General Motors Corp. and Chrysler LLC deadlines to “fundamentally restructure” or lose government aid that has kept them alive.

Obama rejected the companies’ recovery plans and forced GM Chief Executive Officer Rick Wagoner to resign. He gave GM, the biggest U.S. automaker, 60 days to develop a new strategy. Obama said No. 3 Chrysler can’t survive on its own and gave it 30 days to complete a partnership with Italy’s Fiat SpA.

In a decision that surprised lawmakers and analysts with its toughness, Obama said at the White House today “we cannot continue to excuse poor decisions” and “cannot make the survival of our auto industry dependent on an unending flow of taxpayer dollars.” The administration may use bankruptcy to “help them restructure quickly and emerge stronger,” he said.

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