Obama tells Chrysler and General Motors that their plans are not good enough:
WASHINGTON — President Barack Obama on Monday will reject requests for almost $22 billion in new taxpayer bailout money for General Motors Corp. and Chrysler, saying the car makers have failed to take steps to ensure their viability.
The government sought the departure of GM chief Rick Wagoner and said the company needed to be widely restructured if it had any hope of survival. It said it would provide the company with 60 days operating capital to give it time to undertake reforms.
The government will grant Chrysler 30 days operating funds, but said it must merge with another carmaker in order to remain viable. Talks with Italian carmaker Fiat are underway.
The president addressed the nation at 11am, explaining that GM and Chrysler have to come up with better plans or they will be forced into an orderly bankruptcy. He’s basically holding a gun to the heads of the creditors and unions, letting them know that they need to make more concessions. He’s also telling Chrysler that they have to partner up with Fiat in the next thirty days. You can read Obama’s full statement here.