David Shepardson / Detroit News Washington BureauWASHINGTON -- President Barack Obama will provide General Motors Corp. with short-term "working capital" as it conducts additional restructuring, while providing short-term aid to Chrysler LLC as it works to complete a tie-up with Fiat SpA.
Obama told four key Michigan members of Congress during a Sunday night conference call that he would grant unspecified additional aid to GM for 60 days and Chrysler for 30 days, according to a person familiar with the call.
Obama said GM Chief Operating Officer Fritz Henderson would take over the automaker on an interim basis and that no management changes at Chrysler were forthcoming.
The White House demanded and received GM Chairman and CEO Rick Wagoner's resignation as part of the aid request.
The call included Sen. Carl Levin, D-Detroit, and Sen. Debbie Stabenow, D-Lansing as well as Rep. Sander Levin, D-Royal Oak, and Rep. John Dingell, D-Dearborn.
UPDATE: Early reports indicate that Chrysler will receive $6 billion in federal aid and over the course of the 30 days, Chrysler will likely give up a 35% stake to Fiat.
Source (via autoblog.com);
http://www.detnews.com/article/20090329/AUTO01/903290337/1148/rss25
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