What’s Really Good for America

Obama administration issues marching orders to Rick Wagoner.

The Obama administration quashed Detroit’s hopes for kid-glove treatment and sent the sternest possible message by issuing marching orders to Rick Wagoner, the long-serving CEO of General Motors (GM). Along with Chrysler, GM had eked out a $16-billion loan from the Bush administration and the duo was hoping for a similar package now. Even if it means risking close to 300,000 jobs, Team Obama has agreed to fund GM’s operations only for the next 60 days, while the company develops a more sweeping restructuring plan under the new CEO, Fritz Henderson. Chrysler, on the other hand, has merely 30 days to finalise a merger with sickroom bedfellow Fiat—or any other partner—for the second and possibly final round of the $6-billion aid. Auto analysts say the government’s new roadmap for Detroit is virtually impossible to execute, making bankruptcy inevitable.

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