The Obama administration has found the turnaround at both GM and Chrysler to be unsatisfactory. This is not surprising, mostly because the auto industry (especially the American auto industry) has been notoriously resistent to change. There can be no doubt that Americans have “bail-out fatigue,” as the news corporations have taken to calling it. There is also no doubt that the auto industry mostly got itself into this mess. The Obama administration wants the companies to survive, but there needs to be some substantial changed.
Thus, the administration requested GM CEO Rick Wagoner resign. And they’re giving Chrysler 30 days to iron out a deal with Fiat. GM has only 60 days to show its turnaround. If they still don’t meet the administration’s standards, GM and Chrysler will likely begin a quick and controlled bankruptcy. It reminds me of the phrase, “burn up on re-entry.” Hope they’ve got a heat shield.