Obama: Bankruptcy Is 'New Lease On Life for Chrysler'
UPDATED at 12:40 P.M.:
Merging with Fiat and entering Chapter 11 bankruptcy will provide a "new lease on life for Chrysler," President Obama is saying right now.
"This is not a sign of weakness but one more step on a clearly marked path" to Chrysler's recovery," he said.
Obama said the tie-up with Fiat and the bankruptcy will save "30,000 jobs" at Chrysler and "tens of thousands" elsewhere in the auto industry.
One of the jobs saved will not be that of Chrysler chief executive Bob Nardelli, who will leave the company after it emerges from bankruptcy.
In an interview on CNBC that concluded moments ago, Nardelli said that Treasury did not ask him to step down.
Obama had tough words for the Chrysler creditors who refused to capitulate to bankruptcy.
"A group of investment firms and hedge funds decided to hold out for an unjustified taxpayer-funded bailout. Everybody else would have to make sacrifices and they would make none," Obama said, sternly. "I don't stand with them. I stand with Chrysler's employees."
Chrysler "papered over tough problems for years," Obama said.
The White House expects that under what it is calling a "surgical" bankruptcy, Chrysler came emerge from the reorganization within 30 to 60 days, a figure greeted with extreme skepticism by bankruptcy veterans.
Obama said that his team will continue to work with General Motors.
April 30, 2009; 12:40 PM ET
Categories: The Ticker | Tags: Chrysler, Obama, bankruptcy
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