Obama rejects GM, Chrysler restructuring plans

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Source: CCTV.com | 03-31-2009 19:53

The restructuring plans of General Motors and Chrysler have failed to convince the Obama administration to give the green light for substantial new investments that they're requesting.

The restructuring plans of General Motors and Chrysler have failed to convince the Obama administration to give the green light for substantial new investments that they're requesting.

The US government says GM must present a more effective restructuring plan over the next 60 days, to ensure its own survival and global competitiveness.

Obama says the government has no intention of running GM. He added that the situation faced by Chrysler is more perilous, and the government will give the company just 30 days to overcome hurdles to a merger with Italian automaker Fiat.

Barack Obama said, "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. These companies and this industry must ultimately stand on their own, not as wards of the state."