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"In the midst of a deep recession and financial crisis, the collapse of the auto industry would have caused enormous damage to our economy," Obama told an enthusiastic crowd of auto workers.

"So we intervened for one simple and compelling reason: your survival and the success of our economy depended on it."

The president added that his "belief was that if GM retooled and reinvented itself for the 21st century, it would be good for American workers, good for American manufacturing, and good for America's economy. I'm pleased to report that's exactly what's begun to happen at this plant and at others. And I'll tell you what: I will double down on the American people and all of you any day of the week."
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The Obama Administration Tuesday urged the Supreme Court to drop the stay which temporarily halted the sale of Chrysler.

WASHINGTON (CNN) - The Obama Administration Tuesday urged the Supreme Court to drop the stay which temporarily halted the sale of Chrysler, arguing Fiat alter the deal or walk away if it isn't approved by next week.

"If the sale is not consummated by June 15, there is a substantial possibility that Fiat will abandon the transaction or insist on materially different terms as a condition of its participation," Justice Department lawyers said in a brief filed with the Justices.

"It is also undisputed that Chrysler's condition worsens each day it remains in bankruptcy and that Fiat is aware of that situation," the government said.

"While Chrysler remains in bankruptcy with no confirmed alternative to liquidation, its situation deteriorates," the government argued.

Supreme Court Justice Ruth Bader Ginsburg granted a stay to opponents of the sale who stand to suffer major investment losses if the transaction with Fiat is approved.

(CNN) – A trio of mayors whose cities have been hit hard by the troubles of General Motors said Sunday that they were happy the federal government had intervened. But they also faulted politicians in Washington for the partisan bickering over supporting the struggling auto industry.

“Well, certainly somebody had to do something,” Mayor Michael Brown of Flint, Michigan told CNN’s John King.

“This isn’t just about the auto industry,” added Brown, “the credit markets dried up. We’ve got a housing industry in crisis and certainly the federal government had to do something here ... Obviously, we want GM to be running their own business as we go forward but I think there was no alternative at this point in time as far as I’m concerned.”

Wilmington, Delaware Mayor James Baker agreed with Brown but took issue with the constant fighting in Washington over helping the auto industry.

“What we’re seeing is just a stack of cards or a domino effect where things have just gone awry,” Baker said Sunday on CNN’s State of the Union. “And we’re all suffering, we’re all trying to deal with loss of revenues. I mean, it was just like our revenues went off the cliff.”

“I know there’s people that don’t want to see the government involved,” Baker continued. “And you get the dumb argument down there in Washington about the conservatives and the liberals. Who needs it? We need the country working together on our problems.”

“I’ve got to agree with both my colleagues here,” Mayor Michael Dinwiddie of Spring Hill, Tennessee told King. “I don’t think this is a Republican issue or a Democrat issue . I think the worst thing that we could possibly do is turn this into a political battle. This is an American issue. . . . This is a nationwide issue. I think that we need to do everything possible to come together and solve these issues now.”

All three men run cities who have been adversely impacted by the closure or possible closure of GM manufacturing plants as the once-great auto giant restructures in bankruptcy with substantial assistance from the Obama administration.

He praised the struggling automaker, which filed for bankruptcy Monday, for submitting a "viable, achievable plan that will give this iconic American company a chance to rise again."

The deal reached with GM's stakeholders, Obama said at the White House, is "tough, but fair."

Obama noted that GM will receive $30 billion in additional funding from taxpayers, giving the public a 60 percent share in the company.

The government agreed to become a "reluctant" shareholder, he said, because that is the only way GM can survive.

He said the federal government will refrain from exercising its shareholder rights in all but the most fundamental decisions.

At the same time, however, he announced that, under GM's restructuring plan, the company will begin to build a larger share of its cars in the United States.

Obama said that, from the beginning, he had made it clear he wouldn't "kick the can down the road" and let GM and Chrysler "become permanent wards of the state." At the same time, however, he also recognized the importance of the companies to the broader economy.

WASHINGTON (CNN) - President Obama issued the following statement Friday about the latest developments in Chrysler's bankruptcy case:

“The decision by Judge Gonzalez of the United States Bankruptcy Court for the Southern District of New York to approve the Chrysler sale transaction paves the way for the new Chrysler to successfully emerge from bankruptcy as a new, stronger, more competitive company for the future. Only a month ago, this great American company’s very future was in doubt. Now, as a result of a substantial commitment by the U.S. government, and tough sacrifices from all stakeholders involved, Chrysler has a new lease on life. We said this process would be completed quickly and efficiently, and that’s exactly what has been accomplished today. Tens of thousands of American jobs will be saved as a result of this extraordinary effort.”

Related on CNNMoney.com: Judge approves sale of Chrysler assets

The president also blasted a group of investment funds and hedge funds for holding out for an "unjustified taxpayer bailout."

Several financial institutions, led by J.P. Morgan, agreed to reduce Chrysler's loan repayment obligations by as much as two-thirds, Obama said.

But "a group of investment firms and hedge funds decided to hold out for the prospect of an unjustified taxpayer-funded bailout" Obama said. "They were hoping that everybody else would make sacrifices and they would have to make none."

Some investors "demanded twice the return that other lenders were getting," Obama noted.

"I don't stand with them. I stand with Chrysler's employees and their families and communities. I stand with Chrysler's management, its dealers, and its suppliers. I stand with the millions of Americans who own and want to buy Chrysler cars. I don't stand with those who held out while everybody else made sacrifices."

Chrylser's bankruptcy won't affect consumers, Obama promised. Chrysler's warrantees have been guaranteed by the federal government.

"Every dime of taxpayer money will be repaid" before Fiat takes a majority stake in Chrysler, Obama added.

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WASHINGTON (CNN) - Chrysler plans to file for bankruptcy, an Obama administration official said Thursday.

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Chrysler, in talks to merge with Fiat, had an April 30 deadline to come up with a viability plan.

(CNN) - The United Auto Workers union announced Sunday it had reached an agreement with Chrysler, Fiat and the U.S. government that meets the requirements of the Treasury Department for loans to the auto giant.

In a statement, the UAW said the deal was still subject to ratification by union members at Chrysler.

The "painful" concessionary agreement, the UAW said, "includes modifications to the union's 2007 collective bargaining agreement and the Voluntary Employee Beneficiary Association (VEBA) trust."

Union members must approve the deal by Wednesday, the statement said.

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The public used to think that the automakers were too big to fail, but not any longer.

(CNN) – Three-quarters of all Americans think that the federal government should let General Motors or Chrysler go bankrupt rather than pumping more money into the struggling automakers, according to a new CNN/Opinion Research Corporation poll - and most now say that the economy would not face major problems if those companies went into bankruptcy.

The public used to think that the automakers were too big to fail, but not any longer. In December, two-thirds say auto bankruptcies would create major problems or a crisis for the U.S. economy. Now most say that would only cause minor problems or no problems at all.

And Americans don't see any effect on their own lives if the automakers fail: 55 percent say they would face no problems at all if the auto companies went bankrupt. Only 37 percent say they would buy a car from a bankrupt company. But that number rises to 57 percent if the federal government stands behind the warranty on those cars.

The survey includes telephone interviews with 1,023 adult Americans. It was conducted April 3-5, 2009, and has a margin of error of plus or minus 3 percentage points.

(Full results after the jump)

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CNN has learned that the Obama administration asked GM CEO Rick Wagoner to resign. (Photo Credit: Getty Images/File)

WASHINGTON (CNN) - General Motors Chief Executive Rick Wagoner will resign as part of the federal government's plan to bail out the struggling automaker, White House and GM sources told CNN Sunday.

Wagoner's departure comes the day before President Barack Obama is expected to announce the latest details of the government's assistance plan for GM and Chrysler LLC.

A GM spokesman declined to comment, but a statement from the company said, "We are anticipating an announcement soon from the administration regarding the restructuring of the U.S. auto industry."

The two automakers face a Tuesday deadline to prove to the Treasury Department that they can be viable in the long term. Without such a finding, the government can recall the $13.4 billion it has already lent to GM and the $4 billion it loaned to Chrysler.

A 32-year company veteran, Wagoner has been CEO of GM since 2000.

Updated: 6:21 p.m.

–CNN's Kate Bolduan and John King contributed to this report.

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Gov. Granholm begged the Obama administration to help the manufacturing sector, which she called the backbone of the middle class in this country.

WASHINGTON (CNN) – Michigan Gov. Jennifer Granholm told President Barack Obama to ignore persistent Republican criticism that he is trying to do too much in a time of economic crisis and, instead, urged the new president to tackle the nation’s health care costs as part of a larger effort to get the economy back on track.

Watch: Granholm has some advice for Obama

“I think he should do it,” Granholm said when asked whether Obama should forge ahead with health care reform even if doing so meant more taxes or more deficit spending in the current tough economic times.

“It is part of the economy. If you look at the manufacturing sector, one of the huge costs on that sector is health care,” the governor said, noting the impact that health care costs are having on her state’s automotive industry. “It is part of the economic malaise that this country is feeling. So they need to fix that.”

In the wake of Obama’s efforts late last week to tamp down growing controversy over $165 milllion in bonuses paid to AIG employees, Granholm also highlighted a growing sense of a double standard in Michigan.

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Representatives of the Obama administration visited Detroit Monday to test drive the Chevy Volt, pictured here in a file photo.

NEW YORK (CNNMoney.com) – The Obama administration's top auto advisors were in the Detroit area Monday to meet with officials from General Motors and Chrysler, test drive a new electric car and try to chart a course for the industry's rescue.

March 31 is the stated deadline for the government to decide whether General Motors and Chrysler LLC, which have already received $17.4 billion in loans between them and have asked for up to $21.6 billion more in the coming weeks to help them avoid running out of money, deserve another bailout.

Steven Rattner and Ron Bloom, two former investment bankers brought in to advise the Treasury Department on the best course for saving the automakers, and Diana Farrell and Brian Deese, two members of the National Economic Council, made the visit to Detroit Monday.

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Under the terms of federal loans GM has already requested, the Obama administration must determine the struggling automaker's long term viability.

NEW YORK (CNNMoney.com) - General Motors Corp. said in a government filing Thursday that its accounting firm has found there is "substantial doubt" about the automaker's ability to survive.

The embattled automaker made the disclosure in a 480-page filing with the Securities & Exchange Commission.

GM has sustained large and continuing losses, while saying it needs additional federal loans to remain in business. Thursday's statement from the company's auditors presents another hurdle the automaker will have to clear as it makes the case that it deserve additional taxpayer support going forward.

The Obama administration, under the terms of the $13.4 billion in federal loans GM has already requested, must determine that the company's plans make it viable in the long run.

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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.

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Auto sales have plummeted in recent months.

WASHINGTON (CNN) – A new national poll suggests that a majority of Americans approve of recent loans to the big U.S. automakers, but fewer than three in ten would support any additional assistance if the domestic auto industry asked for such help.

Sixty-three percent of those questioned in a new CNN/Opinion Research Corporation survey support the roughly $13 billion loan package the White House is extending to American automakers to prevent them from going into bankruptcy, with 37 percent opposing the move.

In exchange for the loans, the deal calls for the auto companies to come up with plans by the end of March that show how they would change their business models to become viable in the future.

But if the auto companies should ask for more taxpayer assistance, the poll indicates that public opinion changes dramatically. Only 28 percent would approve of providing the automakers more money, with 70 percent saying let them go bankrupt.

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Was the auto bailout a good call?

(CNN) - President Bush announced this week that the federal government will provide $13.4 billion in loans to the nation's automakers.

How will this affect you? Do you work for Chrysler or GM?

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President Bush said Friday that automakers must show they can be profitable businesses by March 31.

(CNN) - The Bush Administration briefed President-elect Obama’s transition team over the last several days about options the Treasury was considering for U.S. automakers, according to a transition aide not authorized to speak publicly, though the administration did not ask for Obama or his staff's approval or opinion on the package or any of its specifics.

The aide pointed out that Obama urged President Bush, in their Oval Office meeting after the election, to grant a short term loan to the auto industry on the condition that significant changes we made toward long term viability.

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Bush announced an auto bailout plan Friday morning.

NEW YORK (CNNMoney.com) - President Bush announced a rescue plan for General Motors and Chrysler LLC Friday morning that will make $13.4 billion in federal loans available almost immediately.

A senior administration official briefing reporters said he expects that GM and Chrysler LLC will be signing the loan papers to access the cash later Friday morning.

The money will come from the $700 billion fund set aside to bailout Wall Street firms and banks in October.

With these loans, Treasury will have committed virtually all of the $350 billion of that fund that it can hand out without additional authorization from Congress. Once Congress releases the other $350 billion, the two automakers will be able to borrow an additional $4 billion.

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Dingell has served in Congress for more than five decades.

(CNN) - Michigan Rep. John Dingell blasted “some Southern Senators” Friday for the failure of the auto bailout plan.

“Last night, some Southern Senators kicked American workers in the gut,” Dingell said in a statement released by his office. “Let’s be clear about what happened in the Senate: Senators from states where the international automakers do considerable business unpatriotically blocked a bill that was supported by the White House, that passed the House with a bipartisan majority, and that had the support of 52 Senators.”

Dingell said that Republican critics of the proposal could have had “many reasons for blocking this bill and thwarting the will of a majority of Congress,” although he said they had not allowed their objections over pay and benefit provisions “to be resolved in the proper tradition.”

But, he added, “It could also be that a block of southern Senators saw an opportunity for their states to benefit from the losses of those of us in all parts of the country.

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The latest auto bailout plan failed last night.

In a statement released by the transition team Friday, President-elect Obama reacted to the failure of the auto bailout last night:

"I am disappointed that the Senate could not reach agreement on a short-term plan for the auto industry. I share the frustration of so many about the decades of mismanagement in this industry that has helped deliver the current crisis. Those bad practices cannot be rewarded or continued. But I also know that millions of American jobs rely directly or indirectly on a viable auto industry, and that the beginnings of reform are at hand.

"The revival of our economy as a whole should not be a partisan issue. So I commend those in Congress as well as the Administration who tried valiantly to forge a compromise. My hope is that the Administration and the Congress will still find a way to give the industry the temporary assistance it needs while demanding the long-term restructuring that is absolutely required."

Watch: Senate unable to reach a deal

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