GM Plight: An Example of 'Day of Reckoning'
March 02, 2009
White House Chief of Staff Rahm Emanuel had some harsh words for General Motors on a Sunday news program, prompting questions about what the Obama administration has in mind for restructuring GM and Chrysler.
Emanuel told CBS' Face the Nation GM's situation is "a wakeup call to America" to increase energy independence and overhaul the nation's health care system. GM's plight is an example of "a day of reckoning," Emanuel said.
The former Democratic congressman blamed GM for pursuing a strategy of relying on "gas guzzlers" instead of investing in alternative energy vehicles, a strategy that left the automaker in a "very unfortunate position."
He also said GM continued with an outdated health care program that hurt the company's business and employees.
"It's an example in my view of what the president's saying for this country, we have a day of reckoning," Emanuel said. "That is the challenge we face as a country."
GM, which last week reported a $31-billion loss for 2008, is scrambling to execute a viability plan by March 31 that President Obama's automotive task force will approve.
Emanuel told Face the Nation that the panel led by Treasury Secretary Timothy Geithner and National Economic Council Director Lawrence Summers are scrutinizing the recently submitted viability plans by GM and Chrysler. Those plans must be approved for the automakers to keep the government loans they have already received and obtain more funds.
Executives from all three Detroit automakers, including Ford, which hasn't taken any government loans, met with the task force last week.
Posted by Michelle Krebs at 7:37 AM under Chrysler , Commentary , Ford , GM | Comments (1) | digg this | Seed Newsvine
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Posted by: shopa | March 02, 2009 at 6:28 PM