TOP 100 RACING SITES
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| Obama Says He Will Speak On Auto Bailout Future President Obama said Thursday that he will have a statement regarding how much more financial support the U.S. government will extend to the auto industry—chiefly General Motors, Chrysler and the auto supplier industry—by Tuesday before he leaves on a European trip.The White House had set a March 31 deadline for his administration to assess restructuring plans set forth by General Motors and Chrysler, which have received billions in tax-payer loans and are asking for more.Though members of the White House task force have indicated in recent days that their work will not likely be finished by the deadline, Obama said today in an online town-hall meeting that he will have something to say about the ailing auto industry and what he intends to do to possibly keep the two companies from going into bankruptcy."I'm going to be making some announcements over the next several days about the auto industry," Obama told a "virtual" town hall meeting from the White House."What we're expecting is that the automakers are going to be working with us to restructure. We will provide them some help," he said in a session broadcast on the Internet where he answered questions from the public on the economy.What isn’t known yet is how definitive his announcement and plans will be. The companies have put forth extensive restructuring plans that include, for example, GM selling or closing its Saturn, Hummer and Saab brands. But GM, with much larger debt problems than Chrysler, has been at an impasse with the United Auto Workers and bond holders over a massive debt restructuring the White House is looking for as a condition of lending more money to the automaker.The union has not yet accepted a deal to take GM stock in place of more than $10 billion it is owed by GM to its healthcare trust fund. And bondholders have not yet accepted an offer to take 30 cents on the dollar for the billions in debt they hold.Members of the White House task force have said in interviews that forcing GM and Chrysler into Chapter 11 bankruptcy is not a desirable option. The group--made up of labor, auto industry and financial experts—have been exploring more creative options to help the companies resize and preserve manufacturing jobs, while minimizing the exposure of the taxpayer to loans that won’t get paid back if the companies are forced into liquidation.In the virtual town hall meeting, Obama said additional government aid for the automakers is "not popular." "If they're not willing to make the changes and the restructurings that are necessary, then I'm not willing to have taxpayer money chase after bad money," he said.GM and Chrysler received $17.4 billion in taxpayer assistance in December after saying they could not survive without it. They are aksing for $22 billion more. Auto suppliers, meantime, have gotten $5 billion in Federal guarantees to keep hundreds of companies from having to file Chapter 11 or liquidate. Ford Motor Co. has not sought a bailout loan.The U.S. auto industry was already undergoing extensive restructuring last year. And the automakers and suppliers were in a fragile financial state. But the precipitous drop in auto sales since last summer has forced the companies into dire financial straits. Sales in March are running about 40% below the same period a year ago, continuing a trend that began in September.Meantime, the White House also said it will announce on Friday a combined car and light truck fuel economy standard for the 2011 model year of 27.3 miles per gallon, a first step in a much broader re-working of the federal fuel economy rules that will continue later this year. rss.businessweek.com |
Tracy, Foyt no odd couple for IndyCar visit to Milwaukee At first glance it's easy to believe A.J. Foyt hired Paul Tracy just for Sunday's IndyCar Series race at the Milwaukee Mile. ... rssfeeds.usatoday.com |
Rain wipes out qualifying, puts Stewart on pole at Pocono Sprint Cup points leader Tony Stewart says it's no big deal that he'll start on the pole in Sunday's Sunoco Red Cross Pennsylvania ... rssfeeds.usatoday.com |
NASCAR to phase in new Nationwide model in 2010 The NASCAR Nationwide Series will phase in a new car in four races on the 2010 schedule, with the cars expected to be used full ... rssfeeds.usatoday.com |
Spies secures stunning debut title American Ben Spies is set to challenge Casey Stoner and Valentino Rossi on the 2010 world MotoGP circuit after claiming the world Superbike title in a stunning debut season. foxsports.com.au |