That isn't what I took from Obama's statement.
What I take away from this is the administration will pay FIAT to take over Chrysler and if that deal can't be worked out it's possible he'll say go to hell to Chrysler. Maybe. The timetable gives FIAT a lot of leverage. FIAT can effectively rewrite Chrysler's labor contracts however they please. GM will be continued on life support but only after the UAW has been completely crushed.
Billions for the ruling class and salaries that are untouchable but peanuts for the working class provided they agree to more pay cuts. Destroying the UAW is change you can believe in.
---Quoting Obama--- "While GM has made a good-faith effort to restructure over the past several months, the plan they have put forward is, in its current form, not strong enough. However, after broad consultations with a range of industry experts and financial advisors, I'm confident that GM can rise again, provided that it undergoes a fundamental restructuring." "My administration will offer General Motors adequate working capital over the next 60 days. During this time, my team will be working closely with GM to produce a better business plan."
"The situation at Chrysler is more challenging. It is with deep reluctance but also a clear-eyed recognition of the facts that we have determined, after a careful review, that Chrysler needs a partner to remain viable. Recently, Chrysler reached out and found what could be a potential partner - the international car company Fiat, where the current management team has executed an impressive turnaround. Fiat is prepared to transfer its cutting-edge technology to Chrysler and, after working closely with my team, has committed to building new fuel-efficient cars and engines here in America." "Still, such a deal would require an additional investment of tax dollars, and there are a number of hurdles that must be overcome to make it work. I am committed to doing all I can to see if a deal can be struck in a way that upholds the interests of American taxpayers." "That is why we will give Chrysler and Fiat 30 days to overcome these hurdles and reach a final agreement - and we will provide Chrysler with adequate capital to continue operating during that time.''
"If they are able to come to a sound agreement that protects American taxpayers, we will consider lending up to $6 billion to help their plan succeed. But if they and their stakeholders are unable to reach such an agreement, and in the absence of any other viable partnership, we will not be able to justify investing additional tax dollar to keep Chrysler in business.'' ---End Quote---
John Thornton