Obama Speaks at Chrysler and GM in Detroit - Video

Obama was fired up, ready to go, giving car makers a boost today.
Speaking of which, I received my OFA call and I've noticed that people are starting to pay more attention now with the mid-term elections around the corner.

At the Chrysler plant, Obama said his first new car was a Jeep Grand Cherokee. It had that new car smell and everything, he said. Up until then, he said he owned beaters.

Obama reminded everyone that the just-say-no crowd said that bailing out the GM and Chrysler was the wrong move. To loud cheers, he said those people (republicans) were wrong.

At GM, Obama got to drive the Volt about 12 inches, he said. The Cadillac he rides in, The Beast, is made by GM, he said.

Obama at GM:

Transcript:

Chrysler Jefferson North Assembly Plant
Detroit, Michigan

12:16 P.M. EDT

THE PRESIDENT: Hello, Detroit! (Applause.)

Well, it is good to be here. Everybody, if you have a seat, have a seat. (Laughter.) It is good -- it’s good to be back.

AUDIENCE: Yeah!

THE PRESIDENT: It’s good to be back. First off, give it up -- give it up to Leah for that wonderful introduction. (Applause.)

We’ve got some special guests here that I want to acknowledge. First of all, your Secretary of Transportation, who has helped to make sure that we are guiding this process of rebuilding the American auto industry and is doing an outstanding job, from Peoria, Illinois, Secretary Ray Lahood. Give him a big round of applause. (Applause.)

Because of a funeral, she couldn’t be here, but I want everybody to give a huge round of applause to one of the best governors in very tough times that exists anywhere in the country, Jennifer Granholm. She’s doing a great job. (Applause.)

Your outstanding new mayor and close to my heart, NBA Hall of Famer, Dave Bing is in the house. (Applause.)

Two of the hardest working senators anywhere. And they are always thinking about Michigan and Michigan manufacturing, making stuff right here in the United States of America, Carl Levine and Debbie Stabenow. (Applause.)

Outstanding member of Congress, Representative Carolyn Cheeks Kilpatrick. (Applause.) UAW President Bob King is in the house. (Applause.) And Chrysler CEO Sergio Marchionne. (Applause.) Sergio is modest. He doesn’t stand up. (Laughter.) But he’s doing a great job.

So I just had a tour of this outstanding plant with Sergio and Pat Walsh, your plant manager; General Holiefield -- now, that's a name right there -- (Laughter.) General Holiefield, vice president of the UAW. (Applause.) Cynthia Holland, your local UAW president. (Applause.)

And it was great to see the work that you’re doing and the cars that you’re building. Especially when you consider the fact that just over a year ago, the future here seemed very much in doubt.

Now, before I make my remarks, I’ve got to disclose, I’m a little biased here because the first new car that I ever bought was a Grand Cherokee. (Applause.) First new car.

Up until that point I had had some old, beat up -- (laughter) -- used cars -- they were not state of the art. And I still remember walking into that showroom and driving out with that new car. It had that new car smell, and everything worked. (Laughter.)

I wasn’t used to that. Had all these -- everything was electronic, and I had -- all my -- I’d had to roll up my windows up until that point. So I’ve got some good memories of that car. But I’ve got to tell you when I sat in this car, this is a better car. This is a state-of-the-art car. This is a world-class car right here. (Applause.)

Now, I want everybody to think about where we were. We were in the midst when I took office of a deep and painful recession that cost our economy about 8 million jobs -- 8 million jobs -- and took a terrible toll on communities like this one.

Our economy was shrinking about 6 percent per quarter. Now, this morning we learned that our economy grew by 2.4 percent in the second quarter of the year, so that means it’s now been growing again for one full year. (Applause.) Read the rest here.

Failure of Leadership Yet Wagoner Gets $23 Million

This is the kind of thing that has to change.

MSNBC: When General Motors Chairman and CEO Rick Wagoner leaves the automaker, he'll take with him a financial package worth an estimated $23 million.

The terms of General Motors Corp.'s government loans prevent it from giving executives severance pay, but they don't affect earned pensions.

Obama tells auto workers: "I will fight for you. You're the reason I'm here today." Obama appointed Edward Montgomery, director of recovery for auto workers and communities, to cut through the red tape to use stimulus funding to create new manufacturing jobs. Here is the announcement that Chrysler and GM just aren't cutting it: 

White House's Auto Task Force findings:

Viability of Existing Plans: The plans submitted by GM and Chrysler on February 17, 2009 did
not establish a credible path to viability. In their current form, they are not sufficient to justify a
substantial new investment of taxpayer resources. Each will have a set period of time and an adequate amount of working capital to establish a new strategy for long-term economic viability.
• General Motors: While GM’s current plan is not viable, the Administration is confident that with a more fundamental restructuring, GM will emerge from this process as a stronger more competitive business. This process will include leadership changes at GM and an increased effort by the U.S.
Treasury and outside advisors to assist with the company’s restructuring effort. Rick Wagoner is
stepping aside as Chairman and CEO. In this context, the Administration will provide GM with working capital for 60 days to develop a more aggressive restructuring plan and a credible strategy to implement such a plan. The Administration will stand behind GM’s restructuring effort.
• Chrysler: After extensive consultation with financial and industry experts, the Administration has reluctantly concluded that Chrysler is not viable as a stand-alone company. However, Chrysler has reached an understanding with Fiat that could be the basis of a path to viability. Fiat is prepared to transfer valuable technology to Chrysler and, after extensive consultation with the Administration,
has committed to building new fuel efficient cars and engines in U.S. factories. At the same time, however, there are substantial hurdles to overcome before this deal can become a reality.
Therefore, the Administration will provide Chrysler with working capital for 30 days to conclude a definitive agreement with Fiat and secure the support of necessary stakeholders. If successful, the government will consider investing up to the additional $6 billion requested by Chrysler to help this
partnership succeed. If an agreement is not reached, the government will not invest any additional taxpayer funds in Chrysler.
• A Fresh Start to Implement Aggressive Restructurings: While Chrysler and GM are different companies with different paths forward, both have unsustainable liabilities and both need a fresh start. Their best chance at success may well require utilizing the bankruptcy code in a quick and surgical way. Unlike a liquidation, where a company is broken up and sold off, or a conventional bankruptcy, where a company can get mired in litigation for several years, a structured bankruptcy
process – if needed here – would be a tool to make it easier for General Motors and Chrysler to clear away old liabilities so they can get on a path to success while they keep making cars and
providing jobs in our economy. Read more here.

Read more about Chrysler and GM viability and warranties for those GMs and Chryslers you own here.
Americans say let 'em die. Those would be the Americans who don't live in Detroit.

GM Chief Is Outta There

Most excellent:

Politico: The Obama administration asked Rick Wagoner, the chairman and CEO of General Motors, to step down and he agreed, a White House official said.

On Monday, President Obama is to unveil his plans for the auto industry, including a response to a request for additional funds by GM and Chrysler.

Wagoner’s resignation was one of the remarkable strings attached to the new aid package the administration is offering GM, based on recommendations from the Presidential Task Force on the Auto Industry, headed by the Treasury Department.

The White House confirmed Wagoner was leaving at the government's behest after The Associated Press reported his immediate departure, without giving a reason.

The surprise announcement about the classically iconic American corporation is perhaps the most vivid sign yet of the tectonic change in the relationship between business and government in this era of subsidies and bailouts.

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