Michigan leaders are responding to President Barack Obama’s announcement today regarding the potential for future auto industry bailouts.

The White House found that restructuring plans submitted in Feb. by both Chrysler and General Motors (NYSE:GM) did not live up to expectations and as a result, the White House is withholding future payments until the two companies submit programs the Obama administration believes are viable restructuring plans.  

In a press conference this morning, Obama specifically supported a plan to merge Chrysler with Fiat. He also announced the formation of The Automotive Task Force.

Michigan politicians were quick to respond.

From Freshman Congressman Mark Schauer, (D-Battle Creek):

“Auto workers, their families, and the communities that depend on this vital industry have been devastated by the ongoing economic crisis. Today’s report is another reminder that we still have a long way to go to put these companies back on the path to viability and turn Michigan’s economy around.

Regardless of how we got here, I’m less concerned about what happens in the board rooms of these companies than what happens to the workers at the GM Delta Township plant and the parts suppliers across the state.

Whatever we do, there is simply too much at stake to let the American auto industry fail.

That’s why I’m willing to do whatever it takes to revive the industry and help its workers make the transition to produce clean energy vehicles and compete in the 21st Century economy.”

Lt. Governor John Cherry, who is also preparing for a gubernatorial run in 2010, said:

“It appears that the federal verdict on the future of General Motors and Chrysler is still out. The Automotive Task Force has established some pretty tough preconditions for the automakers to meet before the federal government provides additional assistance to keep GM and Chrysler afloat. I understand that it will take tough medicine to undo years of economic neglect of the nation’s industrial base.

“However, I hope the preconditions were not designed to force bankruptcy by any name. It is important to understand that bankruptcy of American automakers is one step removed from putting the nation’s entire industrial base into bankruptcy.

“I am also very concerned for the people of Michigan. This announcement is the economic equivalent of a hurricane warning. It does not matter whose fault all of this is. It does not matter who is putting forth a solution. The bottom line is that thousands of families in Michigan and the Midwest are economically devastated. As this process unfolds, I will be encouraging our federal officials – elected and appointed – to aggressively join us in helping our citizens and businesses to weather this storm and to invest in Michigan’s future economy.”

From U.S. Sen. Debbie Stabenow:

“Today’s announcement is further evidence that the administration is taking seriously the need for a viable domestic auto industry to save the manufacturing base of this country and preserve jobs here at home. The actions that President Obama announced will provide the bridge loans our companies need to continue combating the credit crisis that is devastating companies and families around the world.

“Many of the essential measures necessary for long term viability are already in motion. Labor has come to the table again to negotiate, and today Rick Wagoner, who has devoted his entire career to General Motors, demonstrated his commitment to the preservation of GM by agreeing to step down. I certainly appreciate these efforts.

“I will continue working with the administration to ensure that all of the necessary steps are being taken to spur demand and ensure that hard-working Americans who want to purchase cars have access to the credit to do so.”

U.S. Congressman Mike Rogers (R-Brighton) put out the following statement on the announcements:

“Only a month ago, in his State of the Union address, President Obama said he would not leave our auto industry behind. Today, he said he actually will leave GM autoworkers and retirees behind, ordering them to wait another 60 days to learn if they will continue to have jobs or if their company will face the worst possible outcome, bankruptcy. Michigan and our auto workers face a crisis of major proportions and we need decisive and immediate help, not being told to go sit in the corner and wait quietly until the President decides what he is going to do about our future.

“After meeting with the auto task force many times over several weeks, the President’s decision to not move forward with bridge loans was unexpected. We thought the task force was proceeding in good faith even though its members lack auto manufacturing experience. Instead of moving to help the auto industry begin a turnaround and build a future for American auto workers, the announcement is official today that millions of auto workers may be abandoned. That is disheartening and more than worrisome.”

As a result of the announcements, Gov. Jennifer Granholm will be making the rounds on the national news outlets tonight to discuss the impacts.