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March 30, 2009

Obama Outlines Tough Terms For Auto Industry Aid
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US president raises possibility that car companies could go through form
of bankruptcy 
      President Barack Obama makes remarks about American automotive
industry, 30 Mar 2009U.S. President Barack Obama says the two U.S. auto
companies that have received billions of dollars in emergency loans have
not made enough changes to justify continued government assistance. He
asked the head of General Motors to resign, and gave the company 60 days
to come up with a better plan. The president said the third largest U.S.
automaker, Chrysler, is even weaker, and can not survive without forming
a corporate partnership. The President gave Chrysler 30 days to work out
such a deal with Fiat. Mr. Obama also raised the possibility that the
U.S. car companies could go through a form of bankruptcy that would
allow them to shed some of their debts, reorganize, and get back into
business. General Motors says former CEO Rick Wagoner will be replaced
by Fritz Henderson, GM's president and chief operating officer. GM
officials also say they will replace most of the company's board of!
  directors. Governor Jennifer Granholm of Michigan, the midwestern
state where the U.S. auto industry is based, said on NBC's "Today Show"
that Wagoner was GM's "sacrificial lamb," and that he agreed to step
aside for the good of the company and its workers. GM and Chrysler have
already received more than $17 billion in government loans and have
asked for another $21 billion. The third major American manufacturer,
Ford, has not asked for government help. Separately, France's biggest
automaker ousted its chief executive Sunday. Peugeot fired Christian
Streiff and said he will be replaced in June by Phillipe Varin,
currently the chief executive of steelmaker Corus. Peugeot lost more
than $450 million last year.

 

 Some information for this report was provided by AFP, AP and Reuters.


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