February 17th, 2009
10:25 AM ET
5 years ago

Automakers look to Obama administration for additional help

President Obama arrives at the White House on Monday after a weekend in Chicago, llinois.
President Obama arrives at the White House on Monday after a weekend in Chicago, llinois.

WASHINGTON (CNN) - General Motors Corp. and Chrysler will submit detailed restructuring plans Tuesday, while the White House is expected to decide on whether to free up billions more in bailout dollars.

President Obama will release $4 billion more in loans to keep GM afloat, an Obama official and a company official confirm. But the automaker already was expecting that money as part of a commitment the Bush administration made in December.

The more important question is whether GM and Chrysler can deliver viability plans to the Obama administration and convince it that they can survive long term and deserve more government cash down the road.

Ford Motor Co. said in December that it had more cash on hand and that it should be able to avoid tapping into federal dollars unless weak auto sales continue longer than expected in 2009.

On Monday night, GM officials were locked in eleventh-hour talks with their bondholders as well as their union to try to win some last-minute concessions and make the company more viable.

Obama, meanwhile, is creating a task force to oversee the restructuring of the auto industry, a senior administration official said Monday.

Full story


Filed under: Auto Bailout • Economy • President Obama
soundoff (33 Responses)
  1. Matthew, Detroit

    All those that say give poor Barry a chance he inherited this.

    Well Barry needs to stop whining. He wanted the job. He campaigned for the job. Stop whining and do your job.

    Another thing.
    Republicans do not hate their country.

    Barack hates the country. His racist wife Michelle hates and only became proud of her country as of late. It is too bad that these people hate America so much. They are lucky they were born here and not Kenya, Somalia, Rwanda, etc...

    February 17, 2009 02:58 pm at 2:58 pm |
  2. Sniffit

    [Insert nonsensical GOPer hate and regurgitated rhetoric here]

    February 17, 2009 03:02 pm at 3:02 pm |
  3. Louis

    THESE ARROGANT AUTOMAKERS DESERVE TO FAIL!! With a bad business model and incompetent management, they should go bankrupt and then well-run auto companies (and there are many) can take them over. That is how the free market works. Using money from hard-working taxpayers to bail out incompetent companies (auto and banking) is the height of stupidity. America is truly on a downward course.

    February 17, 2009 03:04 pm at 3:04 pm |
  4. SD

    Why on earth are they giving 4 billion more dollars to GM?

    THEY DESERVE TO BE PERMANENTLY SHUT DOWN!

    Caterpillar laid off 20+ thousand and never asked for a penny!
    How about the poor schmucks who work for 5 dollars an hour?

    Sorry, President Obama, but I'm disappointed by this move.

    Let GM go. They'll find jobs working for Toyota or Hyundai. Really.

    And they're not stupid enough to give free health care and wages after being laid off like GM for life. By the way, where can I get that deal?

    February 17, 2009 03:06 pm at 3:06 pm |
  5. Steve (the real one)

    I didn't realize that government bailouts was apart of an MBA program

    February 17, 2009 03:06 pm at 3:06 pm |
  6. A little sad

    @Obama Victim February 17th, 2009 2:25 pm ET

    why not…..this loser gives money to every other loser………….what a country!!

    **************

    Feel free to leave.

    February 17, 2009 03:07 pm at 3:07 pm |
  7. barack obama is still just B.O.

    US can't print money fast enough to support the debt BO is creating through his spending package for repayment of special favors, a.k.a. his stimulus plan. Took Bush 8 years to get us to where BO is getting us in less than a month. Never saw so many hands out for money. What a legacy to leave.

    Even with everything in his favor for this election, his victory was not a mandate and he will be a 1 and done president leaving us in the worse possible shape for the future. But like Clinton, who cares about future generations, just how did the country do while he was president, not the disaster that he left for future presidents.

    Thank you Bill for the banking disaster.
    Thank you Barack for the spending disaster.

    February 17, 2009 03:18 pm at 3:18 pm |
  8. Obama Cares

    the car companies need to face reality and start from the bottom, this time if they will not give their selves millon dollar salaries, they can make it.

    February 17, 2009 03:25 pm at 3:25 pm |
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