GM, Chrysler Rescue Plans Come on Monday

The White House confirmed president Barack Obama's announcement regarding the measures the administration will take to help GM and Chrysler on Monday, Autonews reported.

A White House spokesman said the task force is on the verge of ending about six weeks of closed-doors meetings with the automotive industry’s executives, auto suppliers and analysts.

"They are winding down the decisions that have to be made and putting in place a plan that the president will announce on Monday," White House spokesman Robert Gibbs was quoted as saying by the aforementioned source.

"The president, I think, will outline what he thinks is the best way forward to achieve viability for the companies in both the short term and the longer term," Gibbs added, confirming the president's position on the subject.

The plans that will be revealed on Monday will most surely grant the two struggling manufacturers if not all the aid they require, at least a good part of it. Still, president Obama warned the new package will require new sacrifices.

"Everybody is going to have to give a little bit -- shareholders, workers, creditors, suppliers, dealers -- everybody is going to have to recognize that the current model, economic model, of the U.S. auto industry is unsustainable. A lot of it's going to depend on their willingness to make some pretty drastic changes. And some of those are still going to be painful," Obama said.

The painful part of the process has already begun, with GM starting its massive 47,000 job cutback early last week. The company is still trying to reach an agreement with its union regarding the latter’s health care claim.

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About the author: Daniel Patrascu
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Daniel loves writing (or so he claims), and he uses this skill to offer readers a "behind the scenes" look at the automotive industry. He also enjoys talking about space exploration and robots, because in his view the only way forward for humanity is away from this planet, in metal bodies.
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