WASHINGTON (AP) -- The Obama administration faces difficult choices on the fate of the U.S. auto industry.
They're weighing the cost of pouring billions more into struggling companies against possible bankruptcies that could undermine plans to jump-start the economy.
White House senior adviser David Axelrod says the administration will wait and see what General Motors and Chrysler come up with when they give a progress report Tuesday.
The companies are racing against a deadline to submit plans to the government to show how they can repay billions in government loans and return to viability despite a sharp decline in auto sales.
The terms of the federal loans set "targets" for concessions, largely from debt-holders and the United Auto Workers union.
Meanwhile negotiations between GM and the UAW have resumed. A person briefed on the talks says they're focusing on exchanging the company's cash payments into a union-run retiree health care trust for GM stock.
White House senior adviser David Axelrod says the administration has a major interest in supporting the auto industry and that the administration is giving the United Auto Workers and GM more time for concessions talks.
(Copyright 2009 by The Associated Press. All Rights Reserved.)
KKTV firmly believes in freedom of speech for all and we are happy to provide this forum for the community to share opinions and facts. We ask that commenters keep it clean, keep it truthful, stay on topic and be responsible. Comments left here do not necessarily represent the viewpoint of KKTV 11 News.
If you believe that any of the comments on our site are inappropriate or offensive, please tell us by clicking “Report Abuse” and answering the questions that follow. We will review any reported comments promptly.powered by Disqus