Source: CCTV.com

03-30-2009 18:01

A White House task force has rejected multi-billion dollar pleas from US automakers General Motors and Chrysler. Both had applied for more government aid, but the task force warned that the two companies could be put through bankruptcy to slash their debt. XXX has the details.

A bumper sticker showing support for the American auto industry is seen under the windshield wiper blade of a vehicle in Royal Oak, Michigan March 28, 2009. REUTERS/Rebecca Cook

The announcement by the White House autos panel marked a stunning reversal for management at both automakers, and for GM investors and creditors, who had bet on a softer line.

Instead of granting GM's request for up to 30 billion US dollars in loans, the administration pledged to fund GM's operations for just the next 60 days. In that time, the top US auto maker will develop an even more sweeping restructuring plan under new leadership. Chrysler was given 30 days to complete an alliance with Italy's Fiat or face a cut-off of its government funding that could force it into liquidation.

US President Barack Obama said on Sunday that GM and its smaller rival Chrysler had not done enough to save themselves since receiving a 17.4 billion dollar bailout in December. He said the two must to do more to receive additional financial aid from the government.

Barack Obama , US President, said, "They're not quite there yet. There's been some serious efforts to deal with a combination of longstanding problems in the auto industry and the current crisis, which has seen the market for new cars drop from 14 million to nine million."

Recession in the world's largest economy has slammed the brakes on US car sales, pushing GM and many of its suppliers and dealers to the brink of collapse. GM and Chrysler employ almost 160,000 U.S. workers and their parts suppliers many more. Analysts say allowing the automakers to fail would cause widespread hardship, likely deepening the U.S. downturn and causing more turmoil in troubled global credit markets.

 

Editor:Yang Jie