Models—Human and Auto— Take Bailout Flak at Car Show

Some Republicans were ready to let GM, Chrysler die: Jonathan Cohn

(NEWSER) - Barack Obama reportedly plans to make the auto bailout a key part of his reelection campaign, and Jonathan Cohn of the New Republic thinks that’s a great idea. Chrysler and GM are in much better shape, he argues—GM in particular is “reporting big profits, it is winning design awards, and, most important of all, it is selling lots of cars.” More importantly, employment is creeping higher in states like Michigan with a heavy auto industry presence. More»

(NEWSER) - A spending bill passed by the House last night includes a provision to reopen hundreds of Chrysler dealerships and prevent the closing of over 2,000 more planned by GM, the Detroit News reports. The measure, opposed by the White House, will force the automakers to give dealers targeted for closing under bankruptcy agreements "a decent review process, a decent appeals process," said the head of the House Appropriations Committee. More»

Treasury pushes automaker toward Fiat deal or liquidation

(NEWSER) - The Obama administration has given a further $500 million to keep Chrysler afloat, but Washington signaled yesterday it increasingly believes Chrysler will not survive as an independent company. Treasury officials met yesterday with CEO Robert Nardelli, as well as the heads of the United Auto Workers and Italian automaker Fiat. If it fails to strike a deal with Fiat, Chrysler could file for bankruptcy or liquidation by next week. More»

Billions of dollars in concessions sought from banks, bondholders

(NEWSER) - The government is pushing hard to wring billions of dollars in concessions from the creditors of General Motors and Chrysler, the Wall Street Journal reports. Insiders say Treasury has pushed GM to offer bondholders only stock in return for debt after it judged as too generous a deal involving stock, new debt, and some cash. More»

(NEWSER) - Barack Obama gave GM and Chrysler some tough love yesterday. Too tough, or too much love? Here’s what the papers are saying:

• Obama “delivered a believable, sharp, and necessary ultimatum,” says the Washington Post. He rightly demanded union concessions, and put bankruptcy back on the table.
• But the Chicago Tribune thinks Obama should have gone straight to bankruptcy. “An ultimatum is more believable if you haven't just failed to follow through on a previous one.”