Obama: No Bailout Funds for Automakers

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.

From the Associated Press:

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. Monday in the White House’s foyer.

In an interview with CBS’ “Face the Nation” broadcast Sunday, Obama said the companies must do more to receive additional financial aid from the government.

“We think we can have a successful U.S. auto industry. But it’s got to be one that’s realistically designed to weather this storm and to emerge—at the other end—much more lean, mean and competitive than it currently is,” Obama said.

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.

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One Comment on “Obama: No Bailout Funds for Automakers”

  1. Honeydog0629 Says:

    I personally would really hate to see our American
    Auto Manufacturers become “Extinct”, but they did dig their own Grave and I agree they should be made to get their SH*t together. Every Vehicle I’ve ever owned was made in the USA, I don’t like Foreign-made Cars that all look alike going down the Road (Unless of course it’s a Ferrari or something), and I don’t want to end-up being “forced” to purchase what I don’t like or want. With most everything we buy and use already being made in other Countries, this is a crucial point in our American Legacy, and there needs to be a massive clean-out of the “Big Whigs” responsible for driving it into the Ground. All the Money in the World isn’t going to fix the Problems and save our own beloved Chevys, Fords, Pontiacs,
    Plymouths, Chryslers, Dodges, Lincolns, Mercurys…. Only the right People whose Hands it’s in.

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