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| Obama gives car firms deadlines | Obama gives car firms deadlines |
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| President Barack Obama has given US carmakers General Motors and Chrysler strict deadlines to restructure before receiving more state aid. | President Barack Obama has given US carmakers General Motors and Chrysler strict deadlines to restructure before receiving more state aid. |
| General Motors will be given 60 days and Chrysler just 30 days to submit new plans for recovery. | General Motors will be given 60 days and Chrysler just 30 days to submit new plans for recovery. |
| Soon after ordering the resignation of GM chief Rick Wagoner, Mr Obama said bankruptcy protection could speed up the restructuring process. | Soon after ordering the resignation of GM chief Rick Wagoner, Mr Obama said bankruptcy protection could speed up the restructuring process. |
| But he also offered conditional assurances about the industry's future. | But he also offered conditional assurances about the industry's future. |
| "We cannot, we must not and we will not let our auto industry simply vanish," said Mr Obama. | "We cannot, we must not and we will not let our auto industry simply vanish," said Mr Obama. |
| "But our auto industry is not moving in the right direction fast enough to succeed." | "But our auto industry is not moving in the right direction fast enough to succeed." |
| He said the car firms had run into trouble because of a "failure of leadership - from Washington to Detroit". | He said the car firms had run into trouble because of a "failure of leadership - from Washington to Detroit". |
| He also suggested that seeking bankruptcy protection may be the best way forward for both companies. | He also suggested that seeking bankruptcy protection may be the best way forward for both companies. |
| Restructuring plans may "mean using our bankruptcy code as a mechanism to help them restructure quickly and emerge stronger," he said. | Restructuring plans may "mean using our bankruptcy code as a mechanism to help them restructure quickly and emerge stronger," he said. |
| This could make it easier for the firms to "quickly clear away their old debts that are weighing them down so they can get back on their feet and onto a path of success." | This could make it easier for the firms to "quickly clear away their old debts that are weighing them down so they can get back on their feet and onto a path of success." |
| Mr Obama said this would not have to involve breaking the companies up. | Mr Obama said this would not have to involve breaking the companies up. |
| He also addressed concerns that potential customers may have about after-sales support. | |
| "If you buy a car from Chrysler or GM, you will be able to get your car serviced and repaired. Your warrantee will be safe. | |
| "Because starting today, the US government will stand behind your warrantee." | |
| We have determined that neither goes far enough to warrant the substantial new investments that these companies are requesting President Barack Obama Wagoner ousted by Obama End of the road for Rick Wagoner | We have determined that neither goes far enough to warrant the substantial new investments that these companies are requesting President Barack Obama Wagoner ousted by Obama End of the road for Rick Wagoner |
| Talking of the restructuring plans already submitted by the carmakers, which are looking for more than $20bn of government aid, Mr Obama said: "After careful analysis, we have determined that neither goes far enough to warrant the substantial new investments that these companies are requesting. | Talking of the restructuring plans already submitted by the carmakers, which are looking for more than $20bn of government aid, Mr Obama said: "After careful analysis, we have determined that neither goes far enough to warrant the substantial new investments that these companies are requesting. |
| "My administration will offer GM and Chrysler a limited period of time with creditors, unions, and other stakeholders to fundamentally restructure in a way that would justify an investment of additional tax dollars." | "My administration will offer GM and Chrysler a limited period of time with creditors, unions, and other stakeholders to fundamentally restructure in a way that would justify an investment of additional tax dollars." |
| The president also said he would work with Congress on a programme to encourage consumers to replace old, less fuel efficient cars with newer, cleaner vehicles. | The president also said he would work with Congress on a programme to encourage consumers to replace old, less fuel efficient cars with newer, cleaner vehicles. |
| Germany and others have adopted such schemes, thus boosting vehicle sales. | Germany and others have adopted such schemes, thus boosting vehicle sales. |
| '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. |
| 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 |
| The auto task force set up by the US administration to oversee the government bail-out of the carmakers said in a written report that GM "could be a viable business with a more aggressive restructuring plan". | The auto task force set up by the US administration to oversee the government bail-out of the carmakers said in a written report that GM "could be a viable business with a more aggressive restructuring plan". |
| The carmaker 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. | The carmaker 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 questioned whether the company could survive alone 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 questioned whether the company could survive alone and demanded a merger with Italy's Fiat - the two firms created a strategic alliance earlier this year - or another carmaker. |
| The firm's "fundamentally disadvantaged operating structure and a limited set of desirable products make stand-alone viability for the business highly challenging," it said. | The firm's "fundamentally disadvantaged operating structure and a limited set of desirable products make stand-alone viability for the business highly challenging," it said. |
| The US government would provide working capital for a further 30 days while a merger was discussed, it added. | The US government would provide working capital for a further 30 days while a merger was discussed, it added. |
| If a merger is successful, then the government "will consider investing up to the additional $6bn requested by Chrysler", the task force said. | If a merger is successful, then the government "will consider investing up to the additional $6bn requested by Chrysler", the task force 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 ordered the resignation of GM's chairman and chief executive Rick Wagoner. | |
| Kent Kresa will take over as interim chairman, while Fritz Henderson will serve as chief executive. | |
| GM also announced that a number of new directors will be appointed to the board. | |
| 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 |