The commander-in-chief is using the bully pulpit to wring out more restructuring concessions.
President Obama, in an appearance on CBS’ Face the Nation that was broadcast Sunday said automakers must do more to receive additional financial aid from the U.S. government. The show was taped last Friday, and it is not known what, if any, progress has been made since then.
The president is due to announce tomorrow morning his vision for the future shape of ailing Chrysler LLC and General Motors Corporation. The administration has not completely ruled out receivership as the restructuring plans at both companies have bogged down over union issues, as well the resistance of bondholders, who refuse to accept what will be a costly for them debt-to-equity stock swap.
“We’re trying to let them know that we want to have a successful U.S. auto industry. We think we can have a successful U.S. auto industry. 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,” Obama said.
“That’s going to mean a set of sacrifices from all parties involved — management, labor, shareholders, creditors, suppliers, dealers. Everybody’s going to have to come to the table and say it’s important for us to take serious restructuring steps now in order to preserve a brighter future down the road,” Obama said.
“We are anticipating an announcement soon from the Administration regarding the restructuring of the U.S. auto industry. We continue to work closely with members of the Task Force and it would not be appropriate for us to speculate on the content of any announcement,” General Motors said in a statement late Sunday afternoon.