The White House first pushed out GM's Chairman and CEO Rick Wagoner, than said neither GM nor Chrysler have submitted acceptable plans to receive more bailout money, setting up what could be the end of the line for the two auto giants.
The two automakers have already received $17.4 billion in aid and they had asked for $21.6 billion more.
The Obama administration's auto industry task force issued a report on Sunday night that said Chrysler would get no more aid from the federak government unless it can finalize a merger / acquisition with the Fiat by April 30. It must also reduce its debt and health-care obligations.
If such a deal is reached, the administration would consider another loan of $6 billion to Chrysler.
Meanwhile, the administration is giving G.M. 60 days to present a cost-cutting plan and will provide a lifeline in the form of taxpayer funds to keep it afloat during that time.
General Motors announced Wagoner's departure on Monday, and said the following:
“The Board has recognized for some time that the Company’s restructuring will likely cause a significant change in the stockholders of the Company and create the need for new directors with additional skills and experience. The Board intends to work to nominate a slate of directors for the next annual meeting that will include a majority of new directors taking into account the addition of new directors, retirement, and decisions by individual directors not to stand for re-election, although the specific individuals who will be nominated or choose not to run or leave the board are not yet known.”
GM and Chrysler employ about 140,000 workers in the U.S. Ford has eschewed the need for bailout funds.
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