White House: We have no desire to run GM or any auto company

Following the launch of General Motors more aggressive and revised restructuring plan, the White House said today that the government does not want to run the struggling automaker. In its updated restructuring plan, GM said today that it would give the U.S. Treasury 51 percent of the company.

“This administration and this government have no desire to run an auto company on a day-to-day basis,” White House spokesman Robert Gibbs said. “It is not our desire to own or run one of the auto companies.”

GM CEO Fritz Henderson said today that Obama’s auto task forced has been pushing the company to do whatever it takes to move forward with its goals. He said that the government has asked GM to “develop a plan, to execute the plan, to run the business, to be successful, to be viable, and to take care of the taxpayer so the taxpayer gets a return on their funds.

GM has until the end of May to get 90 percent of bondholders that hold $27 billion in GM debt to make concessions. If it fails to do so, Henderson said that GM would file for bankruptcy where the U.S. government would purchase most of GM’s assets.

– By: The Daily Auto Editor

Source: Free Press