Monday
Jun012009
Obama: With Bankruptcy, General Motors Will Emerge Stronger
By Michael Combier-Talk Radio News Service
Two months after laying his plan with his Auto Task Force to keep struggling U.S. auto giants from collapsing, President Barack Obama announced today that General Motors has filed for Chapter 11 bankruptcy.
“Working with my Auto Task Force, GM and its stakeholders have produced a viable, achievable plan that will give this iconic American company a chance to rise again. It’s a plan tailored to the realties of today’s auto market - a plan that positions GM to move toward profitability, even if it takes longer for our economy to fully recover; and it’s a plan that builds on GM’s recent progress in making better cars,” Obama said.
Also today, Fritz Henderson, GM President and CEO, said that: "The economic crisis has caused enormous disruption in the auto industry, but with it has come the opportunity for us to reinvent our business. We are going to do it once and do it right. The court-supervised process we are pursuing provides us with powerful tools to accelerate and complete our reinvention, as well as strong safeguards for our customers and our business. We are focused on the job at hand, for the benefit of our customers, employees, dealers, suppliers, retirees, taxpayers, investors and other stakeholders."
Obama said that GM will build a larger share of its cars in the U.S. and will be more committed to building more fuel-efficient cars.
In addition to the $19 billion already given to the company with federal loans, Obama said that the federal government is investing about $30 billion in GM which will “entitle American taxpayers to ownership of about 60 percent” in the auto company. Obama said his administration was doing this to protect jobs and “that is the only way to help GM succeed.”
The Obama Administration has no interest in running GM or making decisions for the auto company in the future, Obama said.
“GM will be run by a private board of directors and management team (that) will call the shots and make the decisions about how to turn this company around,” said Obama. “The federal government will refrain from exercising its rights as a shareholder in all but the most fundamental corporate decisions.”
But “building a leaner GM will come at a cost. It will take a painful toll on many Americans who have relied on General Motors throughout the generations... More jobs will be lost. More plants will be close. More dealerships will shut their doors, and so will many parts suppliers,” said President Obama.
Two months after laying his plan with his Auto Task Force to keep struggling U.S. auto giants from collapsing, President Barack Obama announced today that General Motors has filed for Chapter 11 bankruptcy.
“Working with my Auto Task Force, GM and its stakeholders have produced a viable, achievable plan that will give this iconic American company a chance to rise again. It’s a plan tailored to the realties of today’s auto market - a plan that positions GM to move toward profitability, even if it takes longer for our economy to fully recover; and it’s a plan that builds on GM’s recent progress in making better cars,” Obama said.
Also today, Fritz Henderson, GM President and CEO, said that: "The economic crisis has caused enormous disruption in the auto industry, but with it has come the opportunity for us to reinvent our business. We are going to do it once and do it right. The court-supervised process we are pursuing provides us with powerful tools to accelerate and complete our reinvention, as well as strong safeguards for our customers and our business. We are focused on the job at hand, for the benefit of our customers, employees, dealers, suppliers, retirees, taxpayers, investors and other stakeholders."
Obama said that GM will build a larger share of its cars in the U.S. and will be more committed to building more fuel-efficient cars.
In addition to the $19 billion already given to the company with federal loans, Obama said that the federal government is investing about $30 billion in GM which will “entitle American taxpayers to ownership of about 60 percent” in the auto company. Obama said his administration was doing this to protect jobs and “that is the only way to help GM succeed.”
The Obama Administration has no interest in running GM or making decisions for the auto company in the future, Obama said.
“GM will be run by a private board of directors and management team (that) will call the shots and make the decisions about how to turn this company around,” said Obama. “The federal government will refrain from exercising its rights as a shareholder in all but the most fundamental corporate decisions.”
But “building a leaner GM will come at a cost. It will take a painful toll on many Americans who have relied on General Motors throughout the generations... More jobs will be lost. More plants will be close. More dealerships will shut their doors, and so will many parts suppliers,” said President Obama.
Cheney Won’t Budge On National Security
Former Vice President Dick Cheney reiterated his support for the Bush administration’s national security approach today during an address to the Gerald Ford Foundation's annual journalism awards ceremony at the National Press Club.
When questioned about President Barack Obama’s decision to close the Guantanamo Bay detention facility by the end of the year, Cheney said that the administration had erred by ordering to discontinue use of the facility without a plan for the distribution of the prisoners.
“If you don’t have a place to hold these people, the only other solution is to kill them, and we don’t operate that way. We capture people in combat, we hold them as prisoners, we treat them as prisoners of war and are to be held till the end of the conflict,” Cheney said.
Since January, Obama has signed two presidential orders to close the facility within a year.
Cheney recently asked Obama to declassify the CIA’s interrogation documents related to water-boarding so as to prove that the Bush administration was not responsible for what is considered as the widespread condoning of torture by U.S. government officials under the Bush administration.
“[Obama] could with the stroke of a pen, declassify those documents that I’ve asked for,” Cheney said, adding,“The president has the authority to declassify whatever he wants, he is the ultimate classification authority of the federal government.”
When asked if he still believed there was a link between Saddam Hussein and al-Qaida, “The fact that he was a state sponsor of terror, provided sanctuary and safe harbor and resources to terrorists is I think without question, a fact,” adding, “That’s not something I made up. That’s not something I thought of. That’s something the director of Central Intelligence was telling us,” Cheney answered.
Since leaving office in January, Cheney has emerged as a frequent critic of Obama’s national security policies. He accused Obama of making the U.S. less safe during a CNN appearance in March and then again during a speech to the American Enterprise Institute late May. He has also given numerous television interviews conveying the same theme.