Obama: GM Restructuring Plan 'Full of Promise'
By Peter Whoriskey, Kendra Marr and William Branigin
General Motors filed for bankruptcy protection this morning in a move that President Obama said was necessary to restore the auto manufacturing giant to competitiveness and help ensure the survival of the domestic auto industry.
In a speech at the White House hours after GM filed for Chapter 11 bankruptcy protection in New York, Obama hailed GM's plan to emerge from its current woes as "credible" and "full of promise." But he also sought to reassure Americans skeptical about the plan's provisions to transfer a 60 percent ownership stake in the company to the U.S. government in return for an additional investment of about $30 billion during and after the bankruptcy process. The new infusion of cash will bring the total U.S. commitment to GM to about $50 billion.
"We are acting as reluctant shareholders, because that is the only way to help GM succeed," Obama said. "What we are not doing -- what I have no interest in doing -- is running GM."
Posted at 1:57 PM ET on Jun 1, 2009
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