Barack Obama’s auto task force is highly disappointed in GM and Chrysler and has given both automakers failing grades for their turnaround efforts. We’ll get more official details later today, but White House officials have said that President Barack Obama is willing to provide an additional $6 billion to Chrysler, only if it can wrap up its proposed alliance with Fiat S.p.A in 30 days.
If Chrysler fails to close a deal with Fiat and give it a 35 percent stake by the end of April, it will be forced to survive as a stand-alone business.
Government officials said that there is still a lot of work to do on the proposed partnership and that agreement terms would need to be modified.
Chrysler has so far declined to comment on the requirements set by the government. We’re scheduled to get an official statement later today after President Barack Obama’s announcement.
– By: Omar Rana
Source: Free Press