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| Obama gets tough with carmakers | Obama gets tough with carmakers |
| (10 minutes later) | |
| After ordering the resignation of General Motors chief Rick Wagoner, President Barack Obama is to reveal how he plans to save the auto industry. | After ordering the resignation of General Motors chief Rick Wagoner, President Barack Obama is to reveal how he plans to save the auto industry. |
| Long-awaited details of a government rescue package for carmakers General Motors and Chrysler will be revealed. | Long-awaited details of a government rescue package for carmakers General Motors and Chrysler will be revealed. |
| Mr Obama is expected to insist that more must be done by the firms. | |
| He will not automatically hand over billions of dollars more of government aid and has not ruled out bankruptcy for either one of the carmakers. | |
| The president's auto task force has ruled that the two carmakers have not met conditions on loans already made. | The president's auto task force has ruled that the two carmakers have not met conditions on loans already made. |
| The state will guarantee capital only for the next few weeks, it said. | The state will guarantee capital only for the next few weeks, it said. |
| 'Far too slow' | 'Far too slow' |
| GM has been told to come up with a new, more radical restructuring plan in order to qualify for further funds. | GM has been told to come up with a new, more radical restructuring plan in order to qualify for further funds. |
| We think we can have a successful US auto industry President Barack Obama Wagoner ousted by Obama End of the road for Rick Wagoner | We think we can have a successful US auto industry President Barack Obama Wagoner ousted by Obama End of the road for Rick Wagoner |
| The task force said in a written report that GM "could be a viable business with a more aggressive restructuring plan". | The task force said in a written report that GM "could be a viable business with a more aggressive restructuring plan". |
| GM has already announced tens of thousands of job cuts and a number of factory closures in order to cut costs that have spiralled out of control as sales have slumped during the economic downturn. | GM has already announced tens of thousands of job cuts and a number of factory closures in order to cut costs that have spiralled out of control as sales have slumped during the economic downturn. |
| But the task force criticised GM's progress on current restructuring efforts for being "far too slow". | But the task force criticised GM's progress on current restructuring efforts for being "far too slow". |
| The task force has given the company 60 days to come with the new plan and will provide financial assistance during that time. | The task force has given the company 60 days to come with the new plan and will provide financial assistance during that time. |
| In Chrysler's case, it said that the company was "not viable" in its current form and demanded a merger with Italy's Fiat - the two firms created a strategic alliance earlier this year - or another carmaker. | In Chrysler's case, it said that the company was "not viable" in its current form and demanded a merger with Italy's Fiat - the two firms created a strategic alliance earlier this year - or another carmaker. |
| In the meantime, it said the US government would provide working capital for a further 30 days only. | In the meantime, it said the US government would provide working capital for a further 30 days only. |
| Richard Lister, BBC News, Detroit The cold and grey in snowy Detroit is an accurate reflection of the mood here as people wake up to the idea that their industrial landscape has changed again. President Obama has swept aside one of the pillars of the car industry here. Mr Wagoner was a GM veteran, so on local talk shows his resignation was met with some incredulity that he could be forced out by Washington, with one caller insisting he was the victim of and not the creator of the global recession. Both in urban Detroit and surrounding rural Michigan there is a deep set conservatism that instinctively dislikes this level of government intervention. But there is mounting nervousness too. Mr Wagoner had already pledged to cut a fifth of GM's global workforce and close 14 factories. By forcing him to go, President Obama is clearly saying is, that's not enough. End of the road for Rick Wagoner | Richard Lister, BBC News, Detroit The cold and grey in snowy Detroit is an accurate reflection of the mood here as people wake up to the idea that their industrial landscape has changed again. President Obama has swept aside one of the pillars of the car industry here. Mr Wagoner was a GM veteran, so on local talk shows his resignation was met with some incredulity that he could be forced out by Washington, with one caller insisting he was the victim of and not the creator of the global recession. Both in urban Detroit and surrounding rural Michigan there is a deep set conservatism that instinctively dislikes this level of government intervention. But there is mounting nervousness too. Mr Wagoner had already pledged to cut a fifth of GM's global workforce and close 14 factories. By forcing him to go, President Obama is clearly saying is, that's not enough. End of the road for Rick Wagoner |
| In an interview with US broadcaster CBS, President Obama said the firms must do more to justify further aid, saying: "They're not there yet." | In an interview with US broadcaster CBS, President Obama said the firms must do more to justify further aid, saying: "They're not there yet." |
| "We think we can have a successful US auto industry," the president said. | "We think we can have a successful US auto industry," the president said. |
| "But it's got to be one that's realistically designed to weather this storm and to emerge at the other end much more lean, mean, and competitive than it currently is." | "But it's got to be one that's realistically designed to weather this storm and to emerge at the other end much more lean, mean, and competitive than it currently is." |
| Bankruptcy | Bankruptcy |
| The task force did not, however, rule out bankruptcy for either firm. | The task force did not, however, rule out bankruptcy for either firm. |
| "Their best chance at success may well require utilising the bankruptcy code in a quick and surgical way," it said. | "Their best chance at success may well require utilising the bankruptcy code in a quick and surgical way," it said. |
| The two carmakers have already received $17.4bn (£14.4bn) in bail-outs. Chrysler has requested a further $5bn, while GM says it needs $16.6bn more. | The two carmakers have already received $17.4bn (£14.4bn) in bail-outs. Chrysler has requested a further $5bn, while GM says it needs $16.6bn more. |
| President Obama also ordered the resignation of GM's chairman and chief executive Rick Wagoner. | President Obama also ordered the resignation of GM's chairman and chief executive Rick Wagoner. |
| Mr Wagoner will be replaced by Fritz Henderson, who is GM president and chief operating officer. | Mr Wagoner will be replaced by Fritz Henderson, who is GM president and chief operating officer. |
| Have you been affected by issues covered in this story? Do you work for GM? Send us your comments and experiences using the form below. | Have you been affected by issues covered in this story? Do you work for GM? Send us your comments and experiences using the form below. |
| The BBC may edit your comments and not all emails will be published. Your comments may be published on any BBC media worldwide. Terms & Conditions | The BBC may edit your comments and not all emails will be published. Your comments may be published on any BBC media worldwide. Terms & Conditions |