GM files for bankruptcy; Obama outlines plans

(AP) - President Barack Obama pushed General MotorsCorp. into bankruptcy on Monday and said it was part of a "viableachievable plan that will give this iconic company a chance to riseagain." Obama said

News 12 Staff

Jun 1, 2009, 11:10 PM

Updated 5,521 days ago

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(AP) - President Barack Obama pushed General MotorsCorp. into bankruptcy on Monday and said it was part of a "viableachievable plan that will give this iconic company a chance to riseagain."
Obama said he hoped the firm would emerge quickly frombankruptcy court, and said the government was ready to commit anadditional $30 billion to help the company get on its feet.
He said the government would own 60 percent of the new GM, andacknowledged that could prove controversial with some.
Seeking to ease those concerns, Obama said, "What I am notdoing, what I have no interest in doing, is running GM."
Speaking at the White House, the president said auto executives"will call the shots and make the decisions about turning thiscompany around." He said the government would refrain from playinga management role in all but the most critical areas.
"Our goal is to help GM get back on its feet ... and get outquickly," he said of the federal government.
Obama spoke as GM entered bankruptcy court at the same timeChrysler was looking to emerge after a two-month reorganization.Over the weekend, a bankruptcy judge gave the No. 3 automakerapproval to sell most of its assets to Italy's Fiat, part of a planunder which the U.S. government will own somewhat less than 10percent of the firm.
Ford Motor Co., the other large U.S. automaker, has said it canweather the current economic and industry crises on its own.
Under the GM plan envisioned by Obama's auto industry taskforce,the federal government will wind up with 60 percent ownership inthe one-time pillar of American capitalism.
That comes in addition to its smaller stake in Chrysler, as wellas significant interests in banks, insurance giant AIG and twomortgage industry giants, Fannie Mae and Freddie Mac.


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