U.S. Moves to Revamp Ailing Carmakers

Breaking News Alert
The New York Times
Monday, March 30, 2009 — 12:00 AM ET

 

The White House on Sunday pushed out the chairman of General
Motors and instructed Chrysler to form a partnership with the
Italian automaker Fiat within 30 days as conditions for
receiving another much-needed round of government aid.

The decision to ask G.M.’s chairman and chief executive, Rick
Wagoner, to resign caught Detroit and Washington by surprise,
and it underscored the Obama administration’s determination
to take a hands-on role in the companies it is bailing out –
a level of government involvement in business not seen since
the Great Depression.

President Obama is scheduled to announce details of the auto
package at the White House on Monday, but two senior
officials, offering a preview on condition of anonymity, made
clear that some form of bankruptcy – a quick,
court-supervised restructuring, as they described it – could
still be an option for one or both companies.

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