GM To Respond To US Government's Auto Actions Tuesday Morning
30 März 2009 - 6:15PM
Dow Jones News
General Motors Corp. (GM) is expected to hold a news conference
Tuesday morning to respond to the White House's rejection of the
auto maker's restructuring plan, a source familiar with the plans
said.
GM on Monday was scrambling to understand the implications of
President Barack Obama's assessment that the auto maker's efforts
to save itself are falling short and bankruptcy may be the
company's best option.
GM Chief Executive Rick Wagoner was ousted Sunday by the Obama
administration as a condition of giving GM another 60 days to craft
a plan the government feels will work.
The company is surviving on government loans is seeking as much
as $30 billion to avoid stay out of bankruptcy court.
Beyond a brief statement and a public letter from Wagoner, GM
has yet to respond publicly to the grim assessment released Sunday
by the White House. Administration officials said GM needs to do
much more to shrink its global operations, improve its product line
and slash debt if the auto maker is to have any hope of
survival.
Meantime, the group representing GM bondholders was reviewing
the White House documents and plans to make a formal response later
Monday, according to a person familiar with GM's talks with
bondholders. GM is in talks with the bondholders and the United
Auto Workers to reduce the auto maker's massive debt
obligations.