White House Notes 'Encouraging Signs' In GM Situation
30 May 2009 - 5:59AM
Dow Jones News
The White House noted "encouraged signs" in General Motors
Corp.'s (GM) restructuring process Friday, but declined to
speculate on what the next few days hold for the auto maker.
"The president is encouraged that whatever happens at the
deadline, the progress that is being made to restructure General
Motors and put it on a path, as I've said, to being a viable auto
company, we have seen encouraging signs," White House spokesman
Robert Gibbs said. "And what happens in the next few days, the
president obviously will certainly watch and will have something to
say about it next week."
GM, which is expected to file for bankruptcy on Monday, cleared
a major hurdle Friday when the United Auto Workers ratified a new
labor agreement. The bankruptcy is expected to give the government
a 72.5% stake in GM, which will receive up to another $50 billion
in federal loans.
Gibbs said Chrysler LLC, expected to emerge soon from its own
bankruptcy, provides a "hopeful example" for GM.
He also renewed the administration's assurances that President
Barack Obama doesn't want to own or run private companies.
"He's got plenty on his plate," Gibbs said.
-By Henry J. Pulizzi, Dow Jones Newswires; 202-862-9256;
henry.pulizzi@dowjones.com