President Barack Obama will soon unveil the results of a federal examination of restructuring plans put forward by General Motors and Chrysler as a condition of financial aid to the struggling companies.
White House Press Secretary Robert Gibbs said the details would be announced before the President departs for the G20 Summit in London on Tuesday.
The President, as part of viability plans from both GM and Chrysler, is required by the 31st to give an update on those plans and where our government sees them, and we'll be doing that also in the next few days, Gibbs said.
Gibbs also reiterated the President's comments made during an online town hall meeting-style forum that the auto industry globally is facing difficult times, but said that was no excuse for not reforming the companies in a more fundamental way.
What the President said today and what he's maintained throughout this process is that America needs viable automobile manufacturers, but viability means that they are operating without government assistance, Gibbs said.
He added, there's a frustration on the part of this President and on the part of many Americans that we didn't just get into this situation because of a global economic slowdown.
Gibbs added that domestic automakers' focus on inefficient vehicles had contributed to their problem, especially during the gasoline price spikes last year.
It's not surprising that some have sought to end different model lines that, driving around in a car that gets 10 miles to the gallon . when gas is $4 a gallon, he said. I also think there's not a very good business model by which that doesn't cause you problems, as well.
He added, This is a combination of years of failure to plan, as well as . a huge economic slowdown that's seen the demand for the product become much less than it has been in just a couple of years.
Gibbs stressed, however, that Obama does envision a path to a viable domestic auto industry.
House Republicans also came under fire for releasing a budget proposal they said would serve as a framework for an alternative to Obama's budget, which is presently moving through Congress.
The Republican alternative released Thursday was a broad statement of principles, including tax cuts, expanded exploration for domestic energy, allowing universal access to health care by breaking down barriers to purchasing insurance across state lines and controlling the federal budget and debt.
But the Republican plan, of roughly 20 pages, contained few specifics and no analysis of the costs or funding level of federal programs, which drew scorn from Gibbs.
You can't compare budget deficits and the progress that we're making on cutting the deficit in half . because there are no numbers with which to compare it, he said. I guess it's no wonder that over the course of many years, budget deficits in this town and debts ballooned because a group of individuals think that you can have a budget that doesn't contain numbers.
He added, No wonder we have a inherited budget deficit of $1.3 trillion and a debt that's out of control.
Republicans, in a press conference unveiling their alternative, said more details would be put forward Tuesday when they present a substitute amendment to the Democratic proposals.
For comments and feedback: contact email@example.com