Flashback- Obama: Bankruptcy Plan Will Let GM 'Rise Again'

[steve2470]

http://www.npr.org/templates/story/story.php?storyId=104776786

June 01, 2009 7:24 AM

Declaring the government "a reluctant shareholder," President Obama said Monday that pushing General Motors Corp. into bankruptcy was a strategy designed to create a more viable company, rather than one that was a continued drain on taxpayers.

Hours after the automaker filed for Chapter 11 bankruptcy protection in New York, Obama embraced a company restructuring plan that includes closing or idling an additional 14 plants, producing more cars domestically and focusing on the production of fuel-efficient cars.

"Working with my auto task force, GM and its stakeholders have produced a viable, achievable plan that will give this iconic American company a chance to rise again," the president said at a White House news conference. "It's a plan tailored to the realities of today's auto market, a plan that positions GM to move toward profitability, even if it takes longer than expected for our economy to fully recover."

The plan calls for the U.S. government to increase its investment in GM by $30 billion, for a total of $50 billion in aid, giving the government a 60 percent stake in the company, Obama said. Still, he underscored that he has no interest in getting into the auto manufacturing industry.


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[steve2470]

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