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GM Generali

26.98
0.11 (0.41%)
18 Oct 2024 - Closed
Realtime Data
Share Name Share Symbol Market Type
Generali AQEU:GM Aquis Europe Ordinary Share
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.11 0.41% 26.98 27.01 27.02 27.015 26.74 26.81 173,747 16:50:22

UPDATE:White House:All Parties Must Help Ensure Auto Cos Viability

18/02/2009 2:01am

Dow Jones News


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The Obama administration reacted to requests for billions of dollars in additional aid to General Motors Corp. (GM) and Chrysler LLC with a sobering message.

"It is clear that going forward, more will be required from everyone involved - creditors, suppliers, dealers, labor and auto executives themselves - to ensure the viability of these companies going forward," White House Press Secretary Robert Gibbs said in a statement Tuesday evening.

Treasury Secretary Timothy Geithner said he and Lawrence Summers, a top economic adviser to the president, would convene the newly formed President's Task Force On Autos later this week. to analyze the plans The panel will "solicit the full range of input from across the administration on the restructuring necessary for these companies to achieve viability," Geithner said in a statement.

Separately, a Michigan congressman said restructuring plans submitted by General Motors and Chrysler on Tuesday justify additional government aid to the companies. But he cautioned that the process for receiving more public funds should be "painful" and joined a colleague in saying the private equity firm that owns Chrysler should be called to account by the government.

"I think this is a wholly fair plan that has none of the same kind of stink, if you will, that the Wall Street bailout did," said Rep. Mike Rogers, R-Mich. "They're trimming their white-collar structure very significantly, they're closing plants, they're converting plants. It looks very apparent they're going to get concessions on costs (from the union). All of those things are happening and at the same time they're getting ready to introduce very exciting, energy-efficient models coming out, which, by the way the government didn't pay for, all that research and development. There is a return on the investment to the taxpayer."

He said the government should require a "painful" restructuring of the companies to go along with the additional risk to the taxpayers. He added the administration should ask tough questions of Cerberus Capital Management LP, majority owner of Chrysler, including why, as Chrysler CEO Robert Nardelli testified in December, the company hasn't provided emergency assistance to the auto maker.

Earlier Tuesday, another congressman called on Cerberus to provide the government with financial information, and Rogers said he would support that notion. "We don't want to bail out someone who has the ability to do it themselves," Rogers said in a phone interview. "Certainly they should have to answer some fiduciary questions, I believe."

His comments came moments after GM and Chrysler submitted their restructuring plans to the Treasury Department.

House Speaker Nancy Pelosi, D-Calif., said in a statement the plans represent "the next step in what has been a difficult and disappointing chapter for the American economy, but I hope will become the transformation of our domestic automobile industry into a viable, technologically advanced and globally competitive manufacturing force."

House Majority Leader Steny Hoyer, D-Md., noted in a statement that the Obama administration will spend coming weeks reviewing the plans and added, "Congress is committed to holding the industry accountable for achieving real reform, and will also ensure that taxpayer money is protected."

Earlier Tuesday, a senior Republican senator said that no more taxpayer money should be given to Chrysler until its parent company, Cerberus, agrees to inject more funds into the firm.

"This is a private equity-owned company," said Sen. Judd Gregg, R-N.H. "I don't see how we put any more taxpayer money into it. (Cerberus) has enough money, if it wants to put up money it should do so."

-By Josh Mitchell, Dow Jones Newswires; 202-862-6601; josh.mitchell@dowjones.com

(Corey Boles contributed to this story)

 
 

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