GM files for bankruptcy; Obama outlines plans

(AP) - President Barack Obama pushed General MotorsCorp. into bankruptcy on Monday and said it was part of a "viableachievable plan that will give this iconic company a chance to riseagain." Obama said

News 12 Staff

Jun 1, 2009, 6:10 PM

Updated 5,532 days ago

Share:

(AP) - President Barack Obama pushed General MotorsCorp. into bankruptcy on Monday and said it was part of a "viableachievable plan that will give this iconic company a chance to riseagain."
Obama said he hoped the firm would emerge quickly frombankruptcy court, and said the government was ready to commit anadditional $30 billion to help the company get on its feet.
He said the government would own 60 percent of the new GM, andacknowledged that could prove controversial with some.
Seeking to ease those concerns, Obama said, "What I am notdoing, what I have no interest in doing, is running GM."
Speaking at the White House, the president said auto executives"will call the shots and make the decisions about turning thiscompany around." He said the government would refrain from playinga management role in all but the most critical areas.
"Our goal is to help GM get back on its feet ... and get outquickly," he said of the federal government.
Obama spoke as GM entered bankruptcy court at the same timeChrysler was looking to emerge after a two-month reorganization.Over the weekend, a bankruptcy judge gave the No. 3 automakerapproval to sell most of its assets to Italy's Fiat, part of a planunder which the U.S. government will own somewhat less than 10percent of the firm.
Ford Motor Co., the other large U.S. automaker, has said it canweather the current economic and industry crises on its own.
Under the GM plan envisioned by Obama's auto industry taskforce,the federal government will wind up with 60 percent ownership inthe one-time pillar of American capitalism.
That comes in addition to its smaller stake in Chrysler, as wellas significant interests in banks, insurance giant AIG and twomortgage industry giants, Fannie Mae and Freddie Mac.


More from News 12
1:36
Manchester police release 911 calls made by woman after boyfriend shoots her

Manchester police release 911 calls made by woman after boyfriend shoots her

2:30
STORM WATCH: Cloudy skies with sporadic showers for New Jersey

STORM WATCH: Cloudy skies with sporadic showers for New Jersey

2:13
Gov. Murphy facing time crunch in decision for Menendez replacement

Gov. Murphy facing time crunch in decision for Menendez replacement

0:20
U.S. attorney: British citizen pleads guilty to child porn possession, intent to engage in illicit sexual conduct

U.S. attorney: British citizen pleads guilty to child porn possession, intent to engage in illicit sexual conduct

1:50
Lead pipe replacements for thousands finally begins in Paterson

Lead pipe replacements for thousands finally begins in Paterson

0:15
Officials: Hudson County man gets 45 years in prison for 2018 homicide

Officials: Hudson County man gets 45 years in prison for 2018 homicide

1:13
Water main break shuts down two lanes eastbound on Route 37 in Toms River

Water main break shuts down two lanes eastbound on Route 37 in Toms River

1:15
The Dog Days of Summer

The Dog Days of Summer

1:39
Newark Liberty International Airport travelers still impacted by worldwide outage days later

Newark Liberty International Airport travelers still impacted by worldwide outage days later

0:34
Authorities identify driver killed in Route 3 truck crash and explosion in Clifton

Authorities identify driver killed in Route 3 truck crash and explosion in Clifton

0:56
Attorney General's Office: Driver was person who died in East Orange multivehicle crash

Attorney General's Office: Driver was person who died in East Orange multivehicle crash

2:06
Union City residents react to news Sen. Menendez is resigning

Union City residents react to news Sen. Menendez is resigning

0:18
NJ man faces up to 5 years in prison for stealing air conditioners from shopping center

NJ man faces up to 5 years in prison for stealing air conditioners from shopping center

1:26
Son finds his mom stabbed to death in their Edison home; suspect charged with murder

Son finds his mom stabbed to death in their Edison home; suspect charged with murder

2:10
July 24, 2024 drought details and comparison for New Jersey, New York

July 24, 2024 drought details and comparison for New Jersey, New York

0:31
Prosecutors: Palisades Park police officer arrested for assaulting woman multiple times, child endangerment

Prosecutors: Palisades Park police officer arrested for assaulting woman multiple times, child endangerment

1:46
Jersey Shore deli owner, infectious disease doctor explain how to keep safe from listeria amid outbreak

Jersey Shore deli owner, infectious disease doctor explain how to keep safe from listeria amid outbreak

0:28
Husband and wife sentenced for running fake medical practice in Old Bridge

Husband and wife sentenced for running fake medical practice in Old Bridge

0:35
Authorities: Mount Laurel man admits to possession of pipe bombs found in 2023 traffic stop

Authorities: Mount Laurel man admits to possession of pipe bombs found in 2023 traffic stop

0:20
Ewing woman sues Wawa after falling in open parking lot manhole

Ewing woman sues Wawa after falling in open parking lot manhole