At a press briefing held at the White House today, President Barack Obama announced that his Auto Task Force had completed its evaluation of the viability of Chrysler and GM in light of their requests for federal assistance.
The Obama administration also agreed to give Chrysler 30 more days to come up with an alliance plan with Fiat SpA.
Unavoidable alliance
Mr. Obama admitted an alliance here is unavoidable. "It's with deep reluctance but also a clear-eyed recognition of the facts that we've determined, said Obama, that Chrysler needs a partner to remain viable."
In this partnership, Fiat would be prepared to transfer technology to Chrysler and to build cars and engines in the United States. The Obama administration has also secured an agreement that would ensure that Chrysler repays taxpayers for any new investments made before Fiat is allowed to take a majority ownership stake in Chrysler."
But more time and money are needed to come up with an agreement between Chrysler and Fiat, and Chrysler majority owner Cerberus Capital Management LP. An extra 30 days are given to overcome what is referred to "hurdles" in order to reach a final agreement.
During this period, Chrysler will receive adequate capital to continue operating during that time.
"If they are able to come to a sound agreement that protects American taxpayers, we will consider lending up to $6 billion to help their plan succeed", said Obama. "But if they and their stakeholders are unable to reach such an agreement, and in the absence of any other viable partnership, we will not be able to justify investing additional tax dollars to keep Chrysler in business."
Obama Administration's New Warrantee Commitment Program
To maintain a high confidence level with consumers who are in the process of buying a new vehicle, the Obama administration has decided to launch a New Warrantee Commitment Program.
The warranty program will cover all warranties on new vehicles purchased from participating auto manufacturers during the period in which those manufacturers are restructuring. Both General Motors and Chrysler have agreed to participate in the program.
According to the Obama administration, "The program will help provide much needed certainty to consumers, and a boost to the auto industry, during the restructuring period."
This seems as a necessary measure to help Nardelli hold up to the promise he made today, in a statement, to all of his customers, dealers, suppliers and employees that Chrysler would operate "business as usual" in 30 days!
Reaction for the press release:
A Chrysler-Fiat Alliance seems close
photo:Chrysler, Fiat
The Obama administration also agreed to give Chrysler 30 more days to come up with an alliance plan with Fiat SpA.
Unavoidable alliance
Mr. Obama admitted an alliance here is unavoidable. "It's with deep reluctance but also a clear-eyed recognition of the facts that we've determined, said Obama, that Chrysler needs a partner to remain viable."
In this partnership, Fiat would be prepared to transfer technology to Chrysler and to build cars and engines in the United States. The Obama administration has also secured an agreement that would ensure that Chrysler repays taxpayers for any new investments made before Fiat is allowed to take a majority ownership stake in Chrysler."
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But more time and money are needed to come up with an agreement between Chrysler and Fiat, and Chrysler majority owner Cerberus Capital Management LP. An extra 30 days are given to overcome what is referred to "hurdles" in order to reach a final agreement.
During this period, Chrysler will receive adequate capital to continue operating during that time.
"If they are able to come to a sound agreement that protects American taxpayers, we will consider lending up to $6 billion to help their plan succeed", said Obama. "But if they and their stakeholders are unable to reach such an agreement, and in the absence of any other viable partnership, we will not be able to justify investing additional tax dollars to keep Chrysler in business."
Obama Administration's New Warrantee Commitment Program
To maintain a high confidence level with consumers who are in the process of buying a new vehicle, the Obama administration has decided to launch a New Warrantee Commitment Program.
The warranty program will cover all warranties on new vehicles purchased from participating auto manufacturers during the period in which those manufacturers are restructuring. Both General Motors and Chrysler have agreed to participate in the program.
According to the Obama administration, "The program will help provide much needed certainty to consumers, and a boost to the auto industry, during the restructuring period."
This seems as a necessary measure to help Nardelli hold up to the promise he made today, in a statement, to all of his customers, dealers, suppliers and employees that Chrysler would operate "business as usual" in 30 days!
 |
Reaction for the press release:
A Chrysler-Fiat Alliance seems close
photo:Chrysler, Fiat