Geithner, Summers Meet With Auto Task Force

Leaders of a U.S. government task force overseeing the bailout and restructuring of General Motors and Chrysler want more analytical detail and recommendations for turning around the beleaguered companies, officials said.

Panel co-chairs Treasury Secretary Tim Geithner and White House economic adviser Larry Summers "emphasized the urgency of the issues" and the need for "fundamental restructuring," the Treasury Department said in a statement released after the group's first meeting Friday.

The task force, which also includes members from the White House budget office, the Labor, Transportation, Energy and Commerce Departments, as well as the Environmental Protection Agency, reviewed the turnaround plans submitted by GM and Chrysler Tuesday.

The companies received a $17.4 billion bailout in December and have requested a combined $22 billion more in federal aid to survive.

The bailout requires the Obama administration to determine by March 31 whether GM and Chrysler can be competitive and eligible for more government assistance.

Officials at GM and Chrysler did not participate in the meeting.

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The Treasury said members discussed financial and operational details of the companies, as well as efforts to bring unionized wages and benefits in line with those at non-union foreign car companies in the United States, and initiatives to produce more fuel-efficient vehicles.

Geithner and Summers sought more analysis from members, as well as their initial restructuring recommendations due at the next meeting. The date was not disclosed.

Rep. Sander Levin, a Michigan Democrat, said earlier this week he believes the task force has enough time to review the plans and achieve results short of forcing the two into bankruptcy.

"There is time. I think what is happening is the closer we come to the cliff, the more determined everyone is to pitch in so we don't go over," Levin said.

GM and Chrysler, which is controlled by private equity firm Cerberus Capital Management, are reeling from depressed sales aggravated by recession and tight consumer credit. The two warned of near-term failure before receiving bailouts in December.

The companies' are trying to finalize concessions with the United Auto Workers and bondholders to cut debt. Both reached tentative agreements with the UAW this week.

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