Automaker Turnaround Plans Due Today; GM to Receive Additional $4 Billion - aftermarketNews

Automaker Turnaround Plans Due Today; GM to Receive Additional $4 Billion

Pelosi, Frank tell Automakers: Restructuring plan must demonstrate viability and protect taxpayer investments.

WASHINGTON  — On Friday, House Speaker Nancy Pelosi and Financial Services Chairman Barney Frank sent letters to Robert L. Nardelli, Chairman and CEO of Chrysler, and Rick Wagoner Jr., Chairman and CEO of General Motors, regarding their company restructuring plans, which are due today.

In the letters, Pelosi and Frank write: "We trust that your restructuring plan will demonstrate to the world that you are willing to make the tough decisions that modernize your operations, restructure your debt, enhance your competitive status in the global marketplace, and protect American jobs for the future."

According to recent reports from the Associated Press (AP), while they are making progress, it is unlikely that GM and Chrysler will be able to complete agreements with union workers and debtholders by today’s deadline. Both automakers have made headway in concession talks with the UAW, and GM in negotiations with the union last night and into this morning, according to the AP.

Automotive News has reported that the U.S. government will release the second portion of funds to GM as planned, giving the automaker an additional $4 billion in federal funds. This is in addition to the $13.4 billion it already received.

Chrysler has received $4 billion in federal aid and is seeking an additional $3 billion according to the Automotive News report.

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