In a move that "caught Detroit and Washington by surprise," the Obama administration asked GM CEO Rick Wagoner to resign. Edmunds.com CEO Jeremy Anwyl tells Bloomberg News, "The bailout loans aren’t hugely popular and that’s creating an issue for Obama. One way to make the loans more palatable is to be able to say the person responsible is no longer with GM." GM, which had losses of nearly $31 billion last year, received $13.4 billion last year and wants another $16.6 billion. Chrysler, which hopes for another $5 billion of aid, was told it must complete an alliance with Italian automaker Fiat in the next 30 days. The Wall Street Journal explains, "After over a month of analysis, the administration's auto task force determined that neither company had put forward viable plans to restructure and survive." With this news, stock futures have fallen over worries about auto industry bankruptcies.
White House Forces Out GM CEO
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