WASHINGTON (CNN) – The House's Republican leader said Sunday he did not support giving General Motors any more federal funds until the company can show it will be able to survive in the long-term and pay back the government, as two of his GOP colleagues in the Senate said it was time for the automaker to declare bankruptcy.
House Minority Leader John Boehner told CBS that if GM did not meet those requirements, the government would just be "throwing good money after bad," but said he hoped the company would not have to seek bankruptcy protection.
"It's an important institution in our country. It impacts hundreds of thousands of jobs. But they have to do the serious work that they've avoided doing over the last 30 years if they're going to survive," he said on Face the Nation.
Sen. Richard Shelby, who opposed the idea of a domestic auto bailout, told ABC's This Week that GM, Chrysler and Ford should only receive further federal funds as part of Chapter 11 reorganization: "Short of that, the UAW will run those companies and run them into the ground," he said.
Sen. John McCain agreed, telling Fox News Sunday that bankruptcy would be good for GM. "I think the best thing that could probably happen to General Motors, in my view, is they go into Chapter 11, they reorganize, they renegotiate...union management contracts and come out of it a stronger, better, leaner and more competitive automotive industry," he said.
Both GM and Chrysler agreed to get concessions from the United Auto Workers by the end of this month in order to receive more than $17 billion in federal money, and have asked for additional funds that would more than double that amount. Ford has not received emergency government funding, but has reached its own agreement with the union, which will be voted on by members this week.