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

Automakers look to Obama administration for additional help

[cnn-photo-caption image= http://i2.cdn.turner.com/cnn/2009/POLITICS/02/17/obama.ahead/art.obamaweek.gi.jpg caption="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. Cynthia; Bham

    Automakers looking to President Obama – what about those people who have car notes and are having trouble paying them? I guess they just get lost in the shuffle.

    February 17, 2009 01:50 pm at 1:50 pm |
  2. NY republican

    Why not just go ahead and use the word "NATIONALIZE" and stop calling it "bailouts" and "restructuring".

    February 17, 2009 01:53 pm at 1:53 pm |
  3. NY republican

    Why not stop beating around the bush and start calling it "nationalize" instead of "restructure"?

    February 17, 2009 01:55 pm at 1:55 pm |
  4. James

    Buy American people. Your going to pay for one either way.

    February 17, 2009 01:56 pm at 1:56 pm |
  5. john

    Fire GM CEO Rick Wagoner.!! He is a total failure.

    Its funny how a harvard business school grad took a super power named GM and ran it into the ground. It just goes to show you expensive ivy leage schools mean NOTHING.

    Why is he still there?? if any other CEO had year after year of losses they would be history.

    oh, and he killed the electric car! EV1

    February 17, 2009 01:56 pm at 1:56 pm |
  6. no corporate politics

    "task force to oversee the restructuring" = nothing
    $$$ Obama took from corporations = payback time

    Question Authority

    February 17, 2009 02:01 pm at 2:01 pm |
  7. Dutch/Hampton Roads, VA

    I hope the automakers have their ducks in a row. If not, bankruptcy may be the alternative.

    February 17, 2009 02:02 pm at 2:02 pm |
  8. Simpliticus

    It is obvious that the problems with the auto industry cannot go away without additional stimulus to it. The problems rest with their being ungainly and not being able to handle the numbing loss of non-additional sales by an unwinding economy! The oil industry acquired dollars last summer that should have gone to the auto industry in sales. But the Bush administration, being pro oil, allowed the gouging to occur undermining the auto industry and sales in other related industries as well. The Bush administration's cart-before-the-horse mentality failed to make any sense and this placed upon the housing bubble created an idiotic economic policy with failure as a result. Piecing the mess that was the Bush administration together only points to a lamenting situation of out-of-control madness or the dissembling of the American culture so as to undermine entitlements, ther is meaning in this madness!

    February 17, 2009 02:03 pm at 2:03 pm |
  9. the idiot

    They can't do it without concessions from the union and the union won't give anything. Just look at all the airlines and other companies unions have bankrupted. Jus let them go. The nations educations system is bankrupted by the teachers unions, let that go under and reorganize also.

    February 17, 2009 02:04 pm at 2:04 pm |
  10. Kevin in Ohio

    The best solution? Get the UAW OUT of this industry's hair once and for all. Is it any wonder that Saturn, Toyota, Honda now make up the REAL Auto Industry? I will NEVER by a Detroit car until that Union is gone forever, and Detroit automakers can compete.

    February 17, 2009 02:09 pm at 2:09 pm |
  11. S.M.R.

    Auto makers should down size now, If people aren't buying cars why keep up full production. when up to full capasity again, wages should be reduced, benefites reduced, no bonuses for now.

    February 17, 2009 02:10 pm at 2:10 pm |
  12. Matthew, Detroit

    No More Money. Chrysler is failing on its own. Let it go. The other two will have to make cuts, and the union will have to take cuts. Too many workers getting paid not to work. They get paid to put screws in doors and they dont even do that well.

    I call for bankruptcy and reorganization. Let the market fix itself.

    February 17, 2009 02:22 pm at 2:22 pm |
  13. Virginia

    Sure prez, give the rest of our money (from China) away while you can.

    February 17, 2009 02:22 pm at 2:22 pm |
  14. Patrick

    Everyone busy Bristol Palin bashing? Thought so.

    February 17, 2009 02:23 pm at 2:23 pm |
  15. Matthew, Detroit

    We need businessmen to run the country not politicians. Thel country needs to be treated more as a business.

    We are in effect bankrupt and asking CHINA for a stimulus bill/loan. Why dont we have Barney Frank, Dodd, and all the others take a pay cut and show us how they are going to reorganize.

    Maybe Barack should stop flying the jet everywhere and make VIDEO conference calls. CUT THE SPENDING.

    February 17, 2009 02:25 pm at 2:25 pm |
  16. Obama Victim

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

    February 17, 2009 02:25 pm at 2:25 pm |
  17. Jim

    Wait until all the pension funds start going bankrupt too. It will be bad for us – our kids are really screwed – they are going to live in cardboard boxes – if they can afford the cardboard. The lazy, the greedy and the stupid are going drag down those who played by the rules.

    February 17, 2009 02:30 pm at 2:30 pm |
  18. NavySearch&Rescue

    Seems that he IS turning out to be UNCLE TOM OBAMA.
    It is interesting how fast CNN shut off the comments for his denver trip. *less than 2 hours of comments.

    He says we can't wait.. this has to be done NOW. Now that it IS on his desk, he has time for a break?
    same old bs..
    Yes, USA, those of you that voted for him were duped.
    When will you get tired of the elite lining their pockets with your $$ while you are in the poor house?

    February 17, 2009 02:34 pm at 2:34 pm |
  19. C.S.A republicans

    Lets just sell alabama,tennessee,and kentucky to Japan to pay our bills.

    February 17, 2009 02:49 pm at 2:49 pm |
  20. S.S., MD

    Hey, maybe the United States of America, would place the islands of Hawaii on the market to be sold to China to pay what America owes to China, and pay-off all the DEBTS Bush, Cheney, and Wall Street have incurred during the REPUBLICAN Watch.

    February 17, 2009 02:51 pm at 2:51 pm |
  21. Kim

    I'm all for restructuring the auto industry, but no more money to keep GM afloat. It's not as if the auto makers woke up 6 mos. ago and realized they were in trouble. What about the average Americans who need help? What about giving us all an immediate huge influx of cash? Many people haven't had any kind of raise in 3-4 years and keeping up with the cost of living is getting us further and further begind. Thankfully I can still pay my mortgage and keep up with my bills if I juggle, but $13 a week extra in my paycheck is $689 annually more. Ridiculous.

    February 17, 2009 02:52 pm at 2:52 pm |
  22. yuri

    GM, and Chrysler have tons of homework to do. If they swallow all those billions and do not cough up not production of viable cars, the US auto industry will rapidly degenerate into a spent force, seeking its place in an abyss.

    February 17, 2009 02:53 pm at 2:53 pm |
  23. Bob in Pa

    Keeping them afloat does nothing ! You need to help the consumer Mr. President.

    February 17, 2009 02:54 pm at 2:54 pm |
  24. Louis

    THESE ARROGANT AUTOMAKERS DESERVE TO FAIL!!–a bad business model and incompetent management. There are many smart automakers that do not need bailouts. Let GM and Chrysler go under and then a properly run company can take them over. It's called the free-market Using money from hard-working taxpayers to bail out these companies is the height of stupidity. America in decline.

    February 17, 2009 02:56 pm at 2:56 pm |
  25. Louis

    THESE ARROGANT AUTOMAKERS DESERVE TO FAIL!!–a bad business model and incompetent management. There are many smart automakers that do not need bailouts. Let GM and Chrysler go under and then a properly run company can take them over. It's called the free-market Using money from hard-working taxpayers to bail out these companies is the height of stupidity. America in decline.

    February 17, 2009 02:56 pm at 2:56 pm |
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