Obama's ultimatum
Reports indicate that President Obama will order GM to restructure and Chrysler to reach a deal with Fiat, or face the prospect of losing their bailout funds.
General Motors could very well be given 60 days to "completely restructure themselves" or face the consequences of losing their bailout funding and having to file for bankruptcy.
Chrysler on the other hand, was deemed by the Obama administration to be incapable of standing alone. As Fiat has expressed interest in them, Chrysler is to be given 30 days by the US government to reach a deal with the Italian giant.
US President Barack Obama is expected to announce that should Chrysler and Fiat finalize an agreement, his administration will provide up to $6 billion in loans to ensure a smooth deal. Failure to reach an agreement however, might see all funding to Chrysler cut off.
Earlier this year, GM and Chrysler submitted their "viability plans", which were both deemed inadequate. A further effort to convince the Obama administration that they were were saving also failed.
Credits: JRC
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