G.M., Chrysler Restructuring Plans "Inadequate"; G.M. Chair Out; Chrysler "Not Viable" as Stand-Alone Company

CEO / Chairman Wagoner out at GM, which will get 60-days financing as they work to further cut costs. Chrysler given 30 days to come to arrangement with Fiat - found not viable as stand-alone company.

The Detroit Free Press reports:

The do-or-die ultimatums delivered today to two of Detroit’s pillar companies come with promises of additional aid, including up to $6 billion for a Chrysler-Fiat partnership. But senior administration officials also say even successful plans could require a so-called quick rinse in bankruptcy, and warn that without Fiat, Chrysler will get no aid in or out of court.

Obama told Michigan lawmakers Sunday night that both companies had failed to meet the terms of their loans and weren’t viable today.

Details of the Obama administration plans, evaluations of GM and Chrysler (pdf;)

Findings on G.M.'s viability (pdf;)

Findings on Chrysler's viability (pdf;)

New Warranty Government Commitment Program (pdf.)

(Without a government guarantee of new car warranties of G.M. and Chrysler, few would risk purchase of their vehicles due to risk of the warranties becoming worthless after bankruptcy.)

Further detailed coverage at the Detroit Free Press.