Geithner, Summers Lead Task Force on Auto-Maker Bailout
Originally posted on The Wall Street Journal
Treasury Secretary Timothy Geithner and White House economic adviser Lawrence Summers held their first meeting of the Presidential Task Force on the Auto Industry.
The two officials were expected to officially begin considering recovery plans put forth by General Motors Corp. and Chrysler LLC. Both auto firms have requested billions of dollars in additional aid.
Meanwhile, the Saab Automobile division of General Motors Friday filed for creditor protection after failing to secure funds from both the Swedish government and its parent. (See related article on Saab.)
On Tuesday, the troubled companies said they need at least $21.6 billion more in loans to put them on path towards recovery. The requests were part of plans the auto makers were required to submit based on the terms of government loans they received in early January.
Upon receiving the restructuring reports from GM and Chrysler earlier this week, Mr. Geithner noted in a statement that the task force would meet “to analyze the companies’ plans and to solicit the full range of input from across the administration on the restructuring necessary for these companies to achieve viability.”
The meeting, which will be held at the Treasury Department, is expected to officially kick off negotiations between the administration and the auto makers. According to a Treasury notice, the meeting will be closed to the press.
To continue reading, here is the article link