Here are reactions to the General Motors and Chrysler LLC restructuring plans submitted Tuesday to the U.S. Treasury Department:
Robert Gibbs, President Obamas press secretary:
It is clear that going forward, more will be required from everyone involved -- creditors, suppliers, dealers, labor and auto executives themselves -- to ensure the viability of these companies.
Senate Majority Leader Harry Reid, D-Nev.:
In December the Bush Administration decided it was appropriate to provide the auto industry funding to help it restructure and save millions of American jobs, on the condition that they submit plans for long-term viability. Now that the companies have submitted those lengthy and detailed restructuring plans, we must give the Obama Administration room to evaluate them and determine whether it is appropriate to provide additional assistance.
John McEleney, chairman, National Automobile Dealers Association:
We are, of course, exceedingly disappointed that a viable solution has not yet been found for Saturn, Saab and Hummer. Should it become necessary to phase out these brands, it is imperative that GM treat the affected dealers fairly and that they be properly compensated. On the positive front, we are encouraged that GM recognizes that the availability of credit for automotive consumers and dealers is central to GMs survival.
Brian Johnson, analyst, Barclays Capital:
We expect the companies, bondholders and labor to continue to press brinksmanship in the next six weeks. The GM and Chrysler viability plans show increased cash burn and funding requests, with undisclosed progress on the labor and bondholder front. While we expect government aid to continue, with perhaps the condition of a merger of Chrysler into GM, we continue to see little value in current GM equity.
Jesse Toprak, senior analyst, Edmunds.com:
Expecting Chrysler and GM to create massive restructuring plans within a matter of a few weeks during some of the most volatile market conditions in history was simply not realistic.
Sen. Bob Corker, R-Tenn.:
I will be digesting both plans -- which, at present, still feel like works in progress.
Brett Hoselton, senior automotive analyst, KeyBanc Capital Markets:
While the restructuring plan provides some details, it fails to address in any detail the two primary issues -- negotiations with the UAW and bondholders -- leaving the outcome of these negotiations in doubt and the potential for a bankruptcy filing still existent.
Rep. John Dingell, D-Mich., former chairman, House Energy and Commerce Committee:
The United States government must do whatever is possible to preserve the domestic automotive industry. Both GM and Chryslers plans demonstrated a clear path to viability; however, the companies need government loans to get to viability just as our financial institutions are receiving taxpayer assistance to get back on their feet. The cost of action will be high, but the cost of inaction will be much higher.
Sen. Carl Levin, D-Mich., an early proponent of aid to the Detroit 3:
The industry has made significant progress in doing the job that the government asked them to do. It is now up to the federal government and the bondholders to follow through. Every country in the world is taking the necessary steps to preserve their domestic auto industry. We must continue to do the same because the auto industry is critical to maintaining a strong manufacturing sector in the U.S. economy.
David Leiker, analyst, Robert W. Baird & Co.:
We do not expect final resolution on these matters, which could include bankruptcy, until March 31, which is the deadline for certification of the viability plans by Treasury.
House Speaker Nancy Pelosi, D-Calif.:
The submission of restructuring plans by GM and Chrysler represents the next step in what has been a difficult and disappointing chapter for the American economy, but I hope will become the transformation of our domestic automobile industry into a viable, technologically advanced and globally competitive manufacturing force.
Richard Yamarone, director of research, Argus Research, in comments to CNN:
When consumers refuse to buy your product, thats the economy telling you youre bankrupt.