Two key Democratic administration players sent a clear if contradictory message over the weekend to Chrysler and General Motors that they must radically reshape themselves by making profits while cutting costs and preserving jobs and benefits. This of course is what Chrysler, General Motors and Ford have been trying to do for years with little success.
In a letter, just released, Speaker of the House Nancy Pelosi and Financial Services Chairman Barney Frank wrote to Robert L. Nardelli, Chairman and CEO of Chrysler, and Rick Wagoner Jr., Chairman and CEO of General Motors. In it they insisted that their company restructuring plans due tomorrow must “demonstrate to the world that you are willing to make the tough decisions that modernize your operations, restructure your debt, enhance your competitive status in the global marketplace, and protect American jobs for the future.”
Pelosi from California and Frank from Massachusetts also demanded that the struggling companies demonstrate they can meet the fuel efficiency requirements set forth in the Energy Independence and Security Act of 2007 that requires a combined fleet average of at least 35 miles per gallon by model year 2020.