AP reports that the Obama administration’s auto taskforce is preparing a plan for more federal aid to General Motors and Chrysler over the coming months, but that aid may also come with even stricter requirements for concessions and efforts to restructure:
The Obama administration was finishing work on a plan to give more financial aid to two Detroit automakers in return for tough cost-cutting measures that will ensure the companies’ survival.
President Barack Obama’s auto industry task force was expected to offer additional aid to General Motors Corp. and Chrysler LLC while setting firm deadlines for the companies to get concessions from their stakeholders.
An announcement from the White House is expected on Monday. The sticking point still appears to be restructuring debt for both companies. Bondholders have complained that they are expected to make deeper concessions than labor while the leader of the auto taskforce has criticized the bondholders as non-cooperative in negotiations.