Obama Auto Plan: The Details
A look at the Obama administration's plan for General Motors and Chrysler:
—President Barack Obama's auto task force determined that General Motors has not presented a viable plan that would succeed.
—Top executive Rick Wagoner will step down as chairman and chief executive.
Kent Kresa, a GM board member, will serve as interim chairman and current president Fritz Henderson will serve as chief executive.
—The administration is willing to give GM adequate working capital for 60 days to develop a more aggressive restructuring plan.
—The company's stakeholders -- unions, bondholders and others —will need to make sacrifices.
—Using the bankruptcy code "in a quick and surgical way" could be employed to help revitalize General Motors.
—The task force has concluded that Chrysler is not viable as a standalone company.
—The administration will provide Chrysler with working capital for 30 days to conclude an alliance with Fiat SpA, an Italian automaker.
—If successful, the government will consider investing up to $6 billion to help the partnership between Chrysler and Fiat succeed.
—If the agreement is not reached, the government will not invest any additional taxpayer funds in Chrysler.
—The company's stakeholders—unions, bondholders and others —will need to make sacrifices.
—Employing the bankruptcy code "in a quick and surgical way" could be used to help revitalize Chrysler.
— The administration will protect consumer warranties from General Motors and Chrysler vehicles.
—The plan includes an incentive program meant to increase car sales. Obama will work with Congress to use parts of the economic stimulus package to fund a program that would give consumers a "generous credit" when they replace an older, less fuel-efficient car and buy a new, cleaner vehicle.
—The Internal Revenue Service will launch a campaign to alert consumers of a new tax benefit for auto purchases between Feb. 16 and the end of the year.
Consumers may be able to deduct the cost of any sales and excise taxes, a provision that could lead to has many as 100,000 new car sales.