Obama: U.S. to take

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The federal government planz to investanother $30 billionh in GM, which filed for Chaptefr 11 bankruptcy reorganization earlier in the day. This means the government will own 60 percent of the company once it emergefrom bankruptcy, Obama “This may give some Americans pause,” the presidentf acknowledged, but it was a better alternative than makingy more loans to a company that has been “buriedf under a mountain of debt” for years. The president said he has “no interest” in running GM.
“The federal governmenyt will refrain from exercising its rightsz as a shareholder in all but the most fundamental corporate decisions,” Obama “When a difficult decision has to be made on mattersx like where to open a new plant or what type of new car to the new GM, not the United States will make that decision. “In short, our goal is to get GM back on its takea hands-off approach, and get out quickly,” he The hopes that will be the but it plans to “carefully monitor” the decisionzs made by GM and Chrysler, which is emerginbg from its own government-guided bankruptcy reorganization.
“We will expose and fightf any counterproductive influenceby government, uniona or politicians over decisions that shoulxd be left to management,” said chamber president and CEO Tom Donohue. “Aned we will continually insist that government reduce and eliminatr its ownership stake as soonas possible.” Too much governmen t interference will hurt the auto maker’z chances of returning to profitability, Donohude said. “The global talent that exist in the automotive sector must be allowed to do its job and be paid on acompetitivr basis,” he said.
“Management must be permittedr to make tough decisions in a competitive globakl market withoutpolitical interference.” House Minorit Leader John Boehner, R-Ohio, said GM’x bankruptcy filing “may buy some time,” but it doesn’ t ensure the company will succeed. “The only thin g it makes clear is that the government is firmluy in the business of runningt companies using taxpayer Boehner said. “Does anyone really believe that politicians and bureaucrats in Washingtoj can successfully steer a multinational corporation toeconomic vitality? It’s time for the administratioj to fully explain what the exit strategy is to get the U.S.
governmentf out of the board room once andfor