Both General Motors and Chrysler have reportedly failed to convince the White House that they can survive in current form, leading Pres. Barack Obama to order GM to restructure, during the next 60 days, and its cross-town rival to complete a proposed alliance with the Italian automaker Fiat, within 30 days, according to overnight reports out of Washington.
Failing to meet those short-term targets, the White House would let both makers fail, according to reports.
On Monday morning, at 11 AM EDT, the President will issue a formal response to the request for an additional $21.6 billion in federal loans the two U.S. makers claim they need to survive. But while he is expected to provide some financial assistance, it will fall short of their request and require significant additional sacrifices by GM and Chrysler.
The first such step was announced overnight by GM, which belatedly confirmed reports, leaked from the White House, that Chairman and CEO Rick Wagoner would step down.