President-elect Barack Obama was complimentary of the Bush Administration’s decision to provide $17.4 billion in low-interest loans General Motors and Chrysler and he agreed with other politicians who have said that the automakers need to stop “bad management practices.” Earlier today, President George W. Bush pledged the low-interest loans to GM and Chrysler as long as they meet certain requirements by the end of March.
“Today’s actions are a necessary step to help avoid a collapse in our auto industry that would have devastating consequences for our economy and our workers. With the short-term assistance provided by this package, the auto companies must bring all their stakeholders together – including labor, dealers, creditors and suppliers – to make the hard choices necessary to achieve long-term viability,” Obama said in a statement released by his Chicago office.
“The auto companies must not squander this chance to reform bad management practices and begin the long-term restructuring that is absolutely required to save this critical industry and the millions of American jobs that depend on it,” the statement continued.
Obama and his advisers will essentially have free reign over the automakers’ restructuring plans, which must be filed by February 17. They will be able to rewrite the loans or add additional money after the President-elect takes office on January 20.
