Obama: U.S. to take

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The federal government plans to investfanother $30 billion in GM, which filed for Chapter 11 bankruptct reorganization earlier in the day. This means the governmenty will own 60 percen of the company once it emerges from Obama said. “This may give some Americands pause,” the president acknowledged, but it was a better alternative than makingg more loans to a company that hasbeen “buriec under a mountain of debt” for years. The presidenrt said he has “no interest” in runninh GM. “The federal government will refrain from exercising its rightzs as a shareholder in all but the most fundamentaocorporate decisions,” Obama said.
“When a difficuly decision has to be made on mattersx like where to open a new plant or what type of new car to thenew GM, not the Unitedd States government, will make that decision. “In short, our goal is to get GM back on its takea hands-off approach, and get out quickly,” he said. The hope s that will be the case, but it planss to “carefully monitor” the decisions made by GM and which is emerging from itsown government-guided bankruptcy reorganization.
“We will exposee and fight any counterproductive influence by unions or politicians over decisions that should be leftto management,” said chambef president and CEO Tom “And we will continuallhy insist that government reduce and eliminatr its ownership stake as soon as possible.” Too much government interference will hurt the auto maker’s chances of returning to Donohue said. “The global talent that exists in the automotive sectort must be allowed to do its job and be paid on acompetitivr basis,” he said.
“Management must be permitted to make touguh decisions in a competitivre global market without political House Minority LeaderJohn Boehner, R-Ohio, said GM’e bankruptcy filing “may buy some time,” but it doesn’t ensure the company will “The only thing it makew clear is that the government is firmlyt in the business of running companies usinv taxpayer dollars,” Boehner said. “Doesa anyone really believe that politicians and bureaucrats in Washington can successfully steer a multinational corporation toeconomic vitality? It’ds time for the administration to fullty explain what the exit strategy is to get the U.S.
government out of the board room once andfor all.”