As most of you are aware by now, President Barack Obama and his automotive task force today flunked General Motors’ and Chrysler’s viability plans that were submitted on Feb 17.
“Neither goes far enough to warrant the substantial new investments that these companies are requesting,” Obama said. “They must produce plans that would give the American people confidence in their long-term prospects for success.”
While Obama is winning applause from frustrated U.S. taxpayers, analysts and critics called his decision to fire GM’s CEO and pushing Chrysler to merge with Fiat a “heavy-handed power grab.” Obama has also threatened to let both automakers go into bankruptcy. The government will fund GM’s operations for 60-days until the company comes up with a better restructuring plan. Chrysler has 30 days to decide to partner with Fiat after which they will receive $6 billion to support the partnership.
According to Reuters experts called Obama’s decisions today the “most significant presidential intervention in the private sector since Harry Truman tried to seize the steel industry during the Korean War in 1952.”
So do you support Obama and the government’s intervention with the auto industry? Let us know by participating in the poll below. If you have something more to say, drop a line or two in our comments section after the jump.
– By: Omar Rana