Auto Plan Drives GOP in Different Directions

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) - GM and Chrysler got tough love from Barack Obama today, with the president declaring that they haven't made substantial enough changes to justify another federal bailout, and decrying the “failure of leadership” to come up with viable restructuring plans. Obama said the companies would have to regroup radically to survive on their own, not as “wards of the state.” GM will get 60 days worth of federal financing, and Chrysler 30; if they don't have a credible plan in place by then, the government may make them restructure through bankruptcy. More»

Americans will get back on board if auto giants prove they can make good cars again

(NEWSER) - With a $17.4 billion bailout in hand, Detroit must now turn toward restructuring and making the cars America needs, Mark Phelan writes in the Detroit Free Press. “To win back American buyers’ respect,” Phelan continues, “the automakers must show the aid package was a sound investment, not a handout.” That means smaller, fuel-efficient cars as good-looking as they are economical. More»

Historic offering will get government some money back

(AP) - General Motors says its common stock will sell for $33 per share when its initial public offering takes place tomorrow. The IPO, one of the largest in history, brings the US government closer to getting back part of the $50 billion it gave GM last year. The government will sell 412 million shares and get $13.6 billion, leaving it with about 500 million shares, or about 33% of GM. It would have to sell them for $53 a share, or $26.4 billion, for taxpayers to get back their $50 billion back. More»

Half of those that appealed will be allowed to stay open

(NEWSER) - About 600 GM dealerships are getting a second life. Of the 1,160 dealers who appealed orders to shut down as part of bankruptcy proceedings, approximately half will be allowed to stay open. But one dealer tells the Detroit News that it's no cause for celebration until the conditions are made clear, possibly as soon as today. More»