Leave your feedback Share Copy URL https://www.pbs.org/newshour/show/obama-unveils-tough-terms-for-gm-chrysler-recovery-efforts Email Facebook Twitter LinkedIn Pinterest Tumblr Share on Facebook Share on Twitter Transcript President Barack Obama outlined tough terms Monday for continued federal aid for ailing auto giants GM and Chrysler. White House adviser Austan Goolsbee, a member of the auto task force, details the plan. Read the Full Transcript Notice: Transcripts are machine and human generated and lightly edited for accuracy. They may contain errors. GWEN IFILL: Our lead story: President Obama imposed the most far-reaching controls ever on the auto industry today. He announced tough new terms for General Motors and Chrysler and a shakeup at the very top of G.M.It also shook up Wall Street. The Dow Jones Industrial Average lost 254 points to close at 7,522 on fears the two companies wouldn't survive. The Nasdaq index lost 43 points to finish at 1,501.NewsHour correspondent Kwame Holman reports. KWAME HOLMAN: The President's message to G.M. and Chrysler was clear: His auto task force has concluded companies' restructuring plans do not warrant further long-term assistance, at least not yet. U.S. PRESIDENT BARACK OBAMA: And so today I'm announcing that my administration will offer G.M. and Chrysler a limited additional period of time to work with creditors, unions, and other stakeholders to fundamentally restructure in a way that would justify an investment of additional taxpayer dollars. During this period, they must produce plans that would give the American people confidence in their long-term prospects for success. KWAME HOLMAN: Between them, the two automakers have received $17 billion in federal loans and want another $22 billion. But Mr. Obama said the industry cannot survive on endless federal help. He raised the prospect of controlled bankruptcy. BARACK OBAMA: I know that when people hear the word "bankruptcy," it can be unsettling, so let me explain exactly what I mean. What I'm talking about is using our existing legal structure as a tool that, with the backing of the U.S. government, can make it easier for General Motors and Chrysler to quickly clear away old debts that are weighing them down so that they can get back on their feet and onto a path to success, a tool that we can use, even as workers staying on the job, building cars that are being sold. What I'm not talking about is a process where a company is simply broken up, sold off, and no longer exists. KWAME HOLMAN: Instead, Chrysler now will have 30 days to reach an agreement with Italian automaker Fiat if it wants another $6 billion in federal loans. BARACK OBAMA: It's with deep reluctance, but also a clear-eyed recognition of the facts that we've determined, after careful review, that Chrysler needs a partner to remain viable.