The Obama administration autos task force Monday rejected the turnaround plans of General Motors and Chrysler LLC and warned both could be put through bankruptcy to slash debts.
“We have unfortunately concluded that neither plan submitted by either company represents viability and therefore does not warrant the substantial additional investments that they requested,” said a senior administration official, who asked not to be named.
This on the heels of the news earlier this evening of GMs CEO Rick Wagoner departing….
On one level, congratulations… President Obama, I respect you for standing up to these companies and not settling for just any plan and sinking billions more into a failed business model.
On another level, if one or both of these companies go into any form of bankruptcy, it could mean tens of thousands of layoffs.
Do not doubt: This is a step, a difficult, necessary one, but a step indeed, in our ending our dependance on fossil fuel based personal vehicle transport.