General Motors and Chrysler have both failed in the administration’s review in their efforts to turn things around and, because of which, the administration promised serious changes and restructuring in both companies – a clear testament of which was the request for GM CEO Richard Wagoner to step down.
The government will have funds allocated to help US automakers out but will be watching companies closely over the next weeks to make sure that the money is well spent on restructuring.
The US auto industry has already received $17.4 billion and more has been earmarked for suppliers.
In a statement, President Obama declared “We cannot, we must not, and we will not let our auto industry simply vanish. This industry is, like no other, an emblem of the American spirit; a once and future symbol of America’s success.”
Chrysler needs to do sweeping changes as well in order to gain financial independence. Portion of Chrysler has been bought by Italian automaker Fiat.
Ford is doing way better than their two other companies comprising the Detroit Big Three and is currently projecting better days ahead.
Source: CNN Money
