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no more bailout for automakers ?

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Obama denies bailout funds for automakers

White House says neither GM nor Chrysler submitted acceptable plans

updated 31 minutes ago

WASHINGTON - The White House says neither GM nor Chrysler submitted acceptable plans to receive more bailout money, setting the stage for a crisis in Detroit and putting in motion what could be the final two months of two American auto giants.

President Barack Obama and his top advisers have determined that neither company is viable and that taxpayers will not spend untold billions more to keep the pair of automakers open forever. In a last-ditch effort, the administration gave each company a brief deadline to try one last time to convince Washington it is worth saving, said senior administration officials who spoke on the condition of anonymity to more bluntly discuss the decision.

Obama was set to make the announcement at 11 a.m. (1500 GMT) Monday in the White House's foyer.

 

Fiat alliance?


Frustrated administration officials said Chrysler cannot function as an independent company under its current plan. They have given Chrysler a 30-day window to complete a proposed partnership with Italian automaker Fiat SpA, and will offer up to $6 billion to the companies if they can negotiate a deal before time runs out.

If a Chrysler-Fiat union cannot be completed, Washington plans to walk away, leave Chrysler destined for a complete sell-off. No other money is available.

For GM, the administration offered 60 days of operating money to restructure. A frantic top-to-bottom effort began Sunday after CEO Rick Wagoner resigned under pressure from the White House.One official said a majority of the GM board was expected to step down

Officials said GM had not made good on promises made in exchange for $13.4 billion in government loans, although there are no plans to call in those loans

http://www.msnbc.msn.com/id/29944834/

by on Mar. 30, 2009 at 8:16 AM
Replies (11-11):
blustar
by Member on Mar. 30, 2009 at 2:14 PM


Quoting Junebug926:

This is my huge concern as well. Not that think these companies have done anything to deserve a bailout, I'm just worried about the tragic fallout after they all fail. I really don't think many people are truly wrapping their brain around what will happen and just how BIG it is.

Quoting tgiamt:

The way people are treating the automakers really irritates the shit out of me. Yes they've made some bad decisions over the years. But how do you expect these companies to recover in a time like this. The banks (even though they've received billions to do so) are not loaning, people either have no jobs or if they have jobs are choosing to not spend because they are afraid. Do you even realize the magnitude of job loss, and foreclosure that the workers and retirees will be forced into if they fail? We should just sell the state of Michigan to Canada now, be cause they're will be almost nothing left.

These two companies are paying this money back, this is a loan. NOT a bailout! The banks who were just given BILLIONS of dollars, and are still throwing lavish parties, and giving out bonuses that could feed all of freak China.They have to pay nothing back. It was handed to them no questions asked. How is that right?

 


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