See the full Face the Nation interview with President Obama above.
by Mark Silva
It probably will take another federal jump-start for General Motors and Chrysler to get back on the road, the Obama White House is inclined to say this week, but the president is warning the ailing automakers that radical new designs still are required.
"They're not there yet," Obama said of the automakers, in an interview taped Friday and aired this morning on CBS News Face the Nation.
"We think we can have a successful U.S. auto industry,'' the president said. "But it's got to be one that's realistically designed to weather this storm and to emerge -- at the other end -- much more lean, mean, and competitive than it currently is.''
GM and Chrysler already are riding on $17.4 billion in government loans, and probably will need more help to survive the worst downturn in the auto industry in three decades. GM is seeking $16.6 billion more, Chrysler $5 billion more.
The president's task force on the industry is expected to recommend Monday that more short-term aid is warranted - in return for major concessions to make the companies viable and avert bankruptcy. The announcement that Obama makes Monday is expected to include more money in exchange for concessions from union workers, bondholders and others.
The president said he will demand a "set of sacrifices from all parties involved, management, labor, shareholders, creditors, suppliers, dealers. Everybody's gonna have to come to the table and say it's important for us to take serious restructuring steps now in order to preserve a brighter future down the road."
GM and Chrysler face a Tuesday deadline to submit completed restructuring plans, but neither company was expected to finish their work. The administration hopes to accelerate that work with the aid that it announces on Monday.
Last month, GM said it intended to cut 47,000 jobs around the world, nearly 20 percent of its workforce, close hundreds of dealerships and focus on four core brands -- Chevrolet, Cadillac, GMC and Buick - sending Saturn the way of Ford's Edsel.
Chrysler presented two scenarios in its February plan: One as its own company, the second in alliance with Italian automaker Fiat, whose executives have spoken with the administration's task force about a proposal to take a 35 percent stake in Chrysler in exchange for small car technology, transmissions and other items that Chrysler has.
Chrysler said last month that it would cut 3,000 workers and eliminate three vehicle models: the Dodge Aspen, Dodge Durango and Chrysler PT Cruiser.
Wire services contributed.
Comments
More money? $21.6 billion more?
We went through this just a month ago. We were promised that the original money would be enough to do the job. We were promised wage concessions by the unions. We were promised that the auto companies would file restructuring plans.
All lies. Obama lied to us. Obama's still lying to us. Even after the $21.6 billion, the politicians, the unions, the companies will just demand more money and more money and more money from us few remaining taxpayers.
Posted by: Hope N. Change | March 29, 2009 4:20 PM
More money to the auto industry is a total waste as long as the industry is not completive to the foreign companies.
Posted by: Inky | March 29, 2009 4:59 PM
F*** the Democratic Party, F*** the Republican Party of course. But to see Obama of all people sell us out on the oil war profiteers AND to tell American labor to F*** off in the same week (72 hours)--well, now he's a combination of LBJ and Nixon.
First the "Vietnamization" of the war on Irafgakistan, and now the gutting of American labor.
It's the campaign cash, right? (those tricky little 'bundlers'). Turns everything to manure.
Which the Obamas can use on their organic garden--near the yuppie playground set.
Not bitter. Just sick of watching everything go to hell.
Why am I in this handbasket?
Not for long!
Instant Runoff Voting grows a green party without making it close enough for Repugs to steal.
WAKE UP OBAMA! CAN GEITHNER AND SUMMERS. YOU ARE GETTING BAD BAD BAD ADVICE!
Posted by: That said, I like Obama better than Inky and Hope N Change, tho. | March 29, 2009 10:09 PM
This is a great format for an interview.
None of the President's predecessors has been so available, with the exception of FDR who used to have reporters come into the OO almost daily.
Posted by: ornery | March 30, 2009 12:38 AM