Auto Industry Bailout talks

White House ups pressure on US automakers AFP — US automakers came under White House pressure Sunday to make painful choices as a deadline loomed this week for cap-in-hand General Motors and Chrysler to present their recovery plans to the government. David Axelrod, a senior adviser to President Barack Obama, said the collapse of talks between GM and the United Auto Workers union underlined the gravity of the situation ahead of Tuesday's restructuring deadline. click to read complete article

Report: GM to say, 'more aid or bankruptcy' MarketWatch The online edition of The Wall Street Journal, citing unnamed sources, said the competing choices present a dilemma for the Obama administration, which may fear seeing the industrial icon carmaker (GM:2.50, -0.15, -5.7%) fall into bankruptcy and cut more jobs if it's refused more aid. The government has already committed $13.4 billion to GM as part of a federally-funded bailout. The automaker is expected to include its call for more funds in a restructuring plan it's required to submit to the Treasury Department by Tuesday, though the company isn't expected to include a dollar amount, according to the Wall Street Journal report. click to read complete article

GM, Chrysler Struggling to Strike UAW Deal Washington Post General Motors and Chrysler are far from reaching a new labor pact with the United Auto Workers, making it unlikely they will secure an agreement before their Tuesday deadline for presenting a viability plan to the Obama administration. The automakers so far have been unable to meet one of the government's key demands for assuring federal assistance: that they reduce autoworker compensations to levels competitive with foreign carmakers Honda, Nissan and Toyota. A union official said yesterday the two sides remain far apart in reaching an accord. click to read complete article