Obama says he has no interest in running General Motors

March 31st, 2009 - 5:28 pm ICT by ANI  

Barack Obama Washington, Mar. 31 (ANI): US President Barack Obama has clarified that his administration has “no intention” of running General Motors, even as the White House forced the automaker’s CEO to resign, and demanded it to come out with a “better business plan” so that the government can think of rescuing the company.

“Let me be clear. The United States Government has no interest in running GM. We have no intention of running GM. These companies and this industry must ultimately stand on their own, not as wards of the state,” Fox News quoted Obama, as saying.

Obama spoke after the White House forced GM CEO and Chairman Rick Wagoner to step down.

The move was not a “condemnation” of the chairman rather “recognition that it will take a new vision and new direction to create the GM of the future,” he said.

Obama said he was seeking “painful concessions” from GM and Chrysler, but neither company has submitted an acceptable restructuring plan, so he’s giving them additional time to come back with new proposals.

“We cannot, and must not, and we will not let our auto industry simply vanish. This industry is like no other, it’s an emblem of the American spirit. And we cannot continue to excuse poor decisions. And we cannot make the survival of our auto industry dependent on an unending flow of taxpayer dollars,” Obama said at White House.

Obama, however, warned that these plans wouldn’t prevent layoffs.

“There are jobs that won’t be saved, there are plants that may not reopen,” he said.

The companies may consider using US bankruptcy code for restructuring more efficiently, and Obama administration has vowed to support any such steps.

However, no automaker would be required to immediately repay government loan money they previously received, since that would force both companies into Chapter 11 bankruptcy.

In progress reports filed with the government in February, GM asked for 16.6 billion dollars more, while and Chrysler wanted 5 billion dollars more. (ANI)

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