Obama to announce plans for GM and Chrysler on Monday

The White House said yesterday that President Barack Obama will announce his plans to help General Motors and Chrysler on Monday. GM CEO Rick Wagoner was in Washington on Friday to meet with the auto task force’s Steve Rattner as the panel completed six-weeks of ‘closed-door’ meetings with auto industry executives.

“The president’s autos task force is meeting today. I think they are winding down the decisions that have to be made and putting in place a plan that the president will announce on Monday,” White House spokesman Robert Gibbs told Reuters.

GM shares jumped 6 percent since officials have hinted they will not push for bankruptcy for the two Detroit automakers (for those of you wondering, Chrysler is privately held).

On Thursday, Obama said that his administration is prepared to help the U.S. automakers and is willing to provide additional aid as long as they accept to face tougher conditions and thorough restructuring.

– By: Omar Rana

Source: Reuters