UNITED States president Barack Obama pushed General Motors into bankruptcy yesterday, saying it was part of a "viable, achievable plan that will give this iconic company a chance to rise again".
He said he hoped GM would emerge quickly from bankruptcy, and that the US government was ready to commit an extra $30 billion (£18bn) to help the company get back on its feet.
The bankruptcy filing is the third-largest in US history and the larges
t ever in US manufacturing. The company said it had $172.81bn (£105bn) in debt and $82.29bn (£50bn) in assets.
Mr Obama said the US government would own 60 per cent of the new GM, and acknowledged that could prove controversial with some. Seeking to ease those concerns, he said: "What I am not doing, what I have no interest in doing, is running GM."
The president said motor industry executives "will call the shots and make the decisions about turning this company around". He said the US government would refrain from playing a management role in all but the most critical areas.
"Our goal is to help GM get back on its feet … and get out quickly," he said of the federal government.
Mr Obama was speaking as GM entered bankruptcy court and as rival Chrysler was looking to emerge after a two-month reorganisation.
At the weekend, a bankruptcy judge gave Chrysler approval to sell most of its assets to Italy's Fiat, part of a plan under which the US government will own somewhat less than 10 per cent of the firm.
Under the GM plan envisaged by Mr Obama's motor industry task force, the federal government will wind up with 60 per cent ownership in the one-time pillar of American capitalism.
That comes in addition to its smaller stake in Chrysler, as well as significant interests in banks, the insurance firm AIG and two mortgage industry giants, Fannie Mae and Freddie Mac.
Mr Obama thanked the governments of Canada and Germany for the part they played in helping develop the GM plan.
Speaking at the White House, where he was flanked by cabinet secretaries and economic advisers, Mr Obama said the restructuring will "take a painful toll on many Americans", with the closure of additional plants and the loss of jobs.
The president did not pause to answer questions, but Republicans had plenty.
"The only thing it makes clear is that the government is firmly in the business of running companies using taxpayer dollars," said House Republican Leader John Boehner.
"Does anyone really believe that politicians and bureaucrats in Washington can successfully steer a multinational corporation to economic viability?
"It's time for the administration to fully explain what the exit strategy is to get the US government out of the boardroom once and for all."
The full article contains 475 words and appears in The Scotsman newspaper.
