The Auto Sector Must Make Sacrifices, Says White House Administration
The United States officials group in charge of restructuring the auto sector this weekend asked Rick Wagoner to step aside from the CEO and chairman positions in General Motors. Wagoner will be replaced by Fritz Henderson, who is believed to help the company remain in business.
In addition, Chrysler has been given a 30-day window to go further with Fiat negotiations and revise the restructuring plan. As part of the deal, Chrysler would be able to sell a number of European models in the United States while Fiat would get a 35 percent stake in the American company and use its dealership network to expand the market coverage in the region.
Here's the full statement issued today by Nancy Pelosi:
"I share President Obama's goal of a viable and competitive domestic automotive industry, which is an essential part of America's manufacturing base and our national security, and a critical source of green jobs for the future. We need a forward-looking and healthy automobile industry that prizes innovation and competitiveness.
"The future success of the domestic auto industry depends on the willingness of all parties to make sacrifices, but sacrifice must be shared and equitable. As the President said, we must protect taxpayers, promote energy independence, and preserve a viable auto industry, while protecting as many of our manufacturing jobs as possible. Continued government support will depend on the ability of the industry to become viable, innovative, and competitive.
"The automotive industry has long been part of our nation's economic strength, and it can be again. Congress is committed to working with the President to renew the auto industry so it can become a global, competitive, and innovative leader in fuel efficiency and in advanced energy-efficient technologies that reduce our dependence on oil and protect our environment."