Ron Bloom, a senior adviser to the Obama administration’s auto task force, said that the group had no plans to pump more money into General Motors and Chrysler and that the public had a “reasonable probability” of getting their money back.
Bloom faced numerous questions by the Senate Banking, Housing and Urban Affairs Committee about the roughly $80 billion in federal aid given to the automotive industry . He said the Obama administration’s had given the two automakers “a chance to become viable, competitive businesses with bright futures.”
“We strongly believe this is the last money that GM will require. I cannot make a promise about the future but I can assure you that it has been a vigorously debated and thought about question,” Bloom said.
Bloom said that the White House is a “reluctant shareholder” of GM and will stay clear of business decisions. He said that the government had no say in the recent decisions of GM and Chrysler closing dealerships. He said that cutting dealers was one of the most “deep and painful sacrifices from all stakeholders,” including the UAW and bondholders.
– By: Omar Rana