White House Strives to Revamp Auto Sector

With General Motors warning that it's possible to file for bankruptcy even with financial support sourced from the US government, White House officials today said Obama's administration is working "around the clock" to find a solution for the economic recession-hit auto sector. Citing a White House spokesman, Autonews today wrote that the "task force" formed by Obama's administration is to meet shareholders today to determine the best approach to the collapsing economy.

"The administration is very mindful of the challenges in the auto sector," the spokeswoman was quoted as saying by the aforementioned source."Our team is working around the clock to develop the most thoughtful approach possible to the situation."

As said, General Motors today mentioned in the annual report filled with the US Securities and Exchange Commission that it may not survive outside Chapter 11.

“If we fail to do so for any reason, we would not be able to continue as a going concern and could potentially be forced to seek relief through a filing under the U.S. Bankruptcy Code,” said the auto maker in the report.

"Consequently, we are not in default of our covenants. If we conclude that there is substantial doubt about our ability to continue as a going concern for the year ending December 31, 2009, we will have to seek similar amendments or waivers at that time."

However, the White House administration isn't surprised at all and explains that officials have been expected this announcement since a few weeks ago.

"This meets the expectation we have had for weeks. There is a high level of recognition of the urgency of the situation which is why we're in the process of working through restructuring plans with the companies," the White House official said.