The Los Angeles Times and Wall Street Journal banner, while USA Today, the New York Times, and the Washington Post lead
with, news that the Obama administration forced the head of General
Motors to resign and has put both GM and Chrysler on notice that they
won't get another round of federal aid unless they come up with a more aggressive restructuring plan.
President Obama is set to announce today that the restructuring plans
presented by GM and Chrysler earlier this year didn't go far enough to
dig the companies out of their current mess, and he will give them more
time, coupled with stricter conditions, to come up with more realistic
plans. Administration officials emphasized they're prepared to let the
companies fall into bankruptcy. The NYT declares that the decision amounts to "a level of government involvement in business perhaps not seen since the Great Depression" while the WSJ points out
that it indicates the Treasury Department "intends to wade more deeply
than most observers expected into the affairs of the country's largest
and oldest car company." The White House will give GM 60 days to come
up with a new restructuring plan, while Chrysler will have 30 days to
work out an alliance agreement with Italian automaker Fiat. The
government will give both companies just enough money to survive that
period. If Chrysler and Fiat reach an agreement, the government would
be willing to lend Chrysler another $6 billion. To continue reading, click here.