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Obama extends short federal lifeline to GM, Chrysler
President Obama announced Monday that struggling automotive giants General Motors and Chrysler will be given a "limited" period of time to "restructure in a way that would justify an investment of additional taxpayer dollars."President Obama announced his plans for troubled U.S. automakers on Monday.
President Obama announced his plans for troubled U.S. automakers on Monday.
The federal government will give GM "adequate working capital" over the next 60 days to work in conjunction with the administration in developing a better recovery plan, he said.
Chrysler will be given adequate capital to continue operations for 30 days while completing a merger with automaker Fiat.
The president said that if Chrysler can come up with a "sound agreement that protects American taxpayers, we will consider lending up to $6 billion to help their plan succeed."
Obama also indicated that both GM and Chrysler might need to file for bankruptcy in the process of successfully restructuring, which will involve working with creditors, unions and other stakeholders.
"While Chrysler and GM are very different companies with very different paths forward, both need a fresh start to implement the restructuring plans they develop. That may mean using our bankruptcy code as a mechanism to help them restructure quickly and emerge stronger," Obama said in remarks delivered at the White House.
To help bolster consumer confidence during the companies' potential bankruptcies, the president promised that the federal government will immediately begin backing their warrantees.
The administration gave GM and Chrysler failing grades Monday for their turnaround efforts so far. The restructuring plans submitted by the two automakers do not go far enough to warrant the substantial new federal support, Obama said.
But, he added, "We cannot, we must not, and we will not let our auto industry simply vanish.
"This industry is, like no other, an emblem of the American spirit; a once and future symbol of America's success."
The president also warned, however, that the automakers cannot depend on federal assistance indefinitely.
"We cannot make the survival of our auto industry dependent on an unending flow of tax dollars. These companies - and this industry - must ultimately stand on their own, not as wards of the state."
Senate Majority Leader Harry Reid said in a statement Monday that he shares Obama's "commitment to these objectives, and commend his Administration for showing a firm resolve in its negotiations with GM and Chrysler."
"We will not give these companies a blank check. As we have maintained since the earliest days of this crisis, if these companies do not develop strong plans to remain viable in the long term, they will lose our support," he said.
Some of Michigan's congressional delegation weighed in after the announcement, laying out the stark reality the automakers that call their state home are now facing.
"The road ahead is going to be very difficult and painful, although, as the president said, there is potential for both companies to emerge from restructuring as stronger, more competitive companies," said Rep. John Dingell, D-Michigan. "I stand ready to roll up my sleeves and get to work."
Rep. Sander Levin, D-Michigan, said he is confident the companies will meet Obama's demands.
"We can do no less because the domestic automotive sector is the heart of the U.S. industrial base, and as the President said, 'it is a pillar of our economy,'" he said in a press release Monday.
But not all politicians see the plan as fair.
Rep. Brad Sherman, D-California, said Monday that it's not time to "hollow out our manufacturing sector" while providing taxpayer dollars to AIG, which faced public backlash over multimillion-dollar bonuses.
"All of the creditors of General Motors are losing substantial amounts -- even people who worked their whole lives expecting retirement benefits and health benefits when they retire," Sherman said. "What about the rich and powerful that AIG was owed money to? They are getting paid every penny. They demand it, and it comes from the American taxpayer."
GM's restructuring began early Monday when CEO Rick Wagoner announced his resignation, which he said came at the request of the Obama administration.
"On Friday I was in Washington for a meeting with Administration officials. In the course of that meeting, they requested that I 'step aside' as CEO of GM, and so I have," Wagoner said in a statement posted to the GM Web site.
He is being replaced by Fritz Henderson, GM's president and CEO. Kent Kresa will serve as interim chairman.
"Having worked closely with Fritz for many years, I know that he is the ideal person to lead the company through the completion of our restructuring efforts. His knowledge of the global industry and the company are exceptional, and he has the intellect, energy, and support among GM'ers worldwide to succeed," Wagoner said. taken from CNN.com
Lights go out across planet for Earth Hour
Lights went off across the world Saturday as millions of homes and businesses went dark for one hour in a symbolic gesture highlighting concerns over climate change.
The lights go off Saturday at the Houses of Parliament and the Big Ben clock tower in central London.
The lights go off Saturday at the Houses of Parliament and the Big Ben clock tower in central London.
Organizers expected more than 2,800 cities and towns worldwide to dim their lights at 8:30 p.m. local time for the third annual Earth Hour -- a day-long energy-saving marathon spanning 83 countries and 24 time zones.
Major cities in the United States, Asia, the Middle East and Europe had already gone dark for the event by Saturday night on the U.S. East Coast.
In Washington, the lights went out at the Capitol dome at 8:30 p.m.ET; the same time the Empire State Building, Central Park and the George Washington Bridge in New York went dark.
The Philippines topped this year's participation for Asia, with more than 650 communities taking part in the event, according to Earth Hour's Web site.
The light illuminating the face of the landmark Big Ben clock tower in London, England, went out at 8:30 p.m. (4:30 p.m. ET).
In Dubai, iReporter Sharad Agarwal turned out the lights and sat down to a candlelit dinner with his family.
"I personally believe in going green and everything that goes with it," Agarwal told CNN.
In Australia, floodlights of the Sydney Opera House were extinguished as the city's iconic harbor kicked off events for Earth Hour. The event's Web site reported that hundreds of people lined the harbor for a glimpse of the dimming skyline at 8:30 pm.
Sydney became the birthplace of the Earth Hour campaign in 2007 when 2.2 million turned off their lights, igniting a grass-roots movement that has become a global phenomenon.
In China, illuminations at major buildings including the "Bird's Nest" Olympic Stadium and the Water Cube were extinguished as 20 cities joined in, according to the official Xinhua news agency.
Other landmarks around the world expected to join the World Wildlife Fund-sponsored event were the Egyptian pyramids, Vatican, Niagara Falls, the Eiffel Tower, the Empire State Building, the Acropolis in Athens and the Las Vegas casino strip.
CNN iReporter Marie Sager of Los Angeles, California, said she planned to hike up to the Griffith Observatory to experience the massive lights-out event.
"A good portion of the city is participating. We'll see the Capital Records sign go out. A lot of these places haven't turned out their lights in awhile," Sager said.
Event sponsors hoped participating U.S. cities would set an example for the rest of the world. Video Watch actor Edward Norton and Carter Roberts of the World Wildlife Fund discuss event »
"We think we are going to have 100 million people around the world sending a message that climate change is real, and we need to take action now," World Wildlife Fund CEO Carter Roberts told CNN.
"The world is watching to see what America is going to do," he said, "because if America acts on climate change, the world will follow."
Earth Hour events got off to an unofficial start in the remote Chatham Islands in the southern Pacific Ocean where locals switched off their diesel generators, organizers said. Shortly afterward, 44 New Zealand cities and town joined in the event. taken from cnn news
EARTH HOUR IN 28TH MARCH
THIS SATURDAY 28 MARCH AT 8.30PM YOU CAN VOTE EARTH BY SWITCHING OFF YOUR LIGHTS FOR ONE HOUR - EARTH HOUR.We need the world to take action on Global Warming. And you can start here. Use Earth Connect to share your thoughts about Global Warming. In the lead up to Copenhagen, your words will be more important than ever before.
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