With the specter of bankruptcy looming over General Motors and Chrysler, President Obama’s auto team is in Detroit today as it considers whether to give the companies $22 billion more in bailout cash, the Wall Street Journal reports. The field trip will include visits to production and engineering facilities and a meeting with the United Auto Workers.
The auto team, which collectively has no past experience in the industry, faces a March 31 deadline to consider reorganization plans submitted by GM and Chrysler. Many have pressed both automakers to reorganize under bankruptcy protection, but the Obama administration may be reluctant to further shock the economy. GM won concessions from Canada’s auto union yesterday, a step toward $5 billion from that country.