Auto Task Force: GM Plan Not Viable

By Kevin Spak,  Newser Staff
Posted Mar 30, 2009 6:28 AM CDT
In a Feb. 17, 2009 file photo General Motors Chief Operating Officer Fritz Henderson is seen during the company's restructuring plans news conference in Detroit.   (AP Photo/Carlos Osorio/file)
camera-icon View 3 more images

(Newser) – GM’s current restructuring plan isn’t going to cut the mustard, President Obama’s auto task force declared in its stinging assessment for the White House. The memo accuses GM of relying on rosy, unrealistic projections for sales, burning through too much cash, expecting too much from the rollout of the electric Chevy Volt, and giving itself until 2014 to reach many of its goals. The team will force out most of GM’s directors, on the heels of last night’s ouster of CEO Rick Wagoner.

But despite the grim assessment, the team “is confident that with a more fundamental restructuring, GM will emerge from this process as a stronger, more competitive business.” To that end, the White House will provide working capital for 60 more days, so the company can devise a more aggressive plan.