From SME: President Obama's announcement of a set of conditions for Detroit automakers to receive additional Federal aid dominates front pages across the country, and led cable shows and all three network newscasts last night. While the coverage included negative reactions to Obama's words – including Wall Street's selloff and charges that he is being tougher on Detroit auto workers than on banking executives – the President himself was credited, particularly on network TV, with taking a decisive stance on behalf of US taxpayers. The CBS Evening News (3/30, lead story, 3:15, Couric), for example, led its broadcast saying, "With all the anger across the country about taxpayer bailouts...Obama stood up to the auto companies today and said firmly, 'you're not getting another one, not unless you come up with a better plan for restructuring your companies.'" The President "forced out GM Chairman Rick Wagoner, who stepped down today, and gave the company 60 days to submit a new restructuring plan." And "as for Chrysler, it has just 30 days to form an alliance with the Italian car maker Fiat." ABC World News (3/30, lead story, 2:55, Gibson) similarly reported, "Obama laid it out in stark terms for General Motors and Chrysler today: Time, patience and the willingness of taxpayers to spend more money are all running out."
On NBC Nightly News (3/30, story 3, 1:30, Williams), analyst Chuck Todd said, "You know, there have been so many bailouts, we're kind of numb to it. But this really is a big one. It's Kennedy and the steel industry. It's Reagan and firing those air traffic controllers. It's Truman and the railroads. This is a big moment, pivotal moment. And the other thing about it is not only did the President fire, essentially fire the head of a corporation that's, frankly, an American icon, is that he said that the auto industry is going to be taken over by Washington. Washington has already been all over Wall Street." The AP (3/31, Babington) has similar remarks and calls the warranty announcement an "extraordinary step."
The Detroit Free Press (3/31, Hyde) reports Obama "made clear that the limits of federal aid to automakers was within sight, and that deeper cuts among workers, dealers, creditors and suppliers, along with a possible trip through bankruptcy court, would be needed for the automakers' survival." The Detroit News (3/31, Shepardson, Trowbridge) notes the President "rejected the viability plans the automakers filed in support of the $17.4 billion in government loans they've received," though he "sought to reassure consumers and workers that bankruptcy, if required, would be brief." Said the President, "What I am not talking about is a process where a company is broken up, sold off, and no longer exists. ... And what I am not talking about is having a company stuck in court for years, unable to get out." The News adds that "to reassure customers, the government is unveiling a program to back the warrantees of GM and Chrysler vehicles -- in the event either automaker fails. Both automakers will contribute funds that will be backed by government loans."
The Financial Times (3/31, A1, Braithwaite) notes in a front-page story the President on Monday blamed "'a failure of leadership' from Washington to Detroit for the decline of America's carmakers," marking "the latest step in the administration's increasingly interventionist approach to the auto industry."
USA Today (3/31, Jackson) reports "GM and Chrysler are operating on a combined $17.4 billion in government loans approved by the Bush administration in December. They had until March 31 to prove they were viable to qualify for more loans. The two automakers have asked for another $21.6 billion. ... Ford Motor, the third member of the Detroit Three, has not requested federal bailout funds, and was not included in the president's remarks."
The Washington Post (3/31, A10, Whoriskey, Marr), in a story headlined "Obama Is Stern With Automakers," says that "for both companies, one of the most critical problems is the volume of debt they carry." GM "has $27 billion in outstanding bonds and owes its retiree health plan an estimated $20 billion." The New York Times (3/31, A18, Sanger), Roll Call (3/31, Koffler), and Bloomberg News (3/31, Woellert, Hughes) also cover the story.
Rejection Of Auto Plans Helps Stocks Plunge. The CBS Evening News (3/30, story 4, 0:15, Couric) reported that "the rejection of the GM and Chrysler restructuring plans helped send stock prices sharply lower today. The Dow plunged more than 250 points. The NASDAQ lost 43." NBC Nightly News (3/30, story 4, 0:15, Williams) also said "investors were rattled by today's events, especially the ripple effects through the car business." The AP (3/31, Lepro, Paradis), USA Today (3/31, Shell), the Financial Times (3/31, Stacey), the Wall Street Journal (3/31, McKay, Curran), the Washington Post (3/31, A11, Mui), and the Washington Times (3/31, Weber) also attribute the stock decline to the auto industry announcement.
Bankruptcy Now The "Leading Option" For GM, Chrysler. On ABC World News (3/30, story 3, 1:40, Gibson), George Stephanopoulos was asked whether the Administration wants GM and Chrysler to go into bankruptcy. Stephanopoulos said, "I think that's going a little bit too far...but bankruptcy is very much on the table right now and Administration officials tell me it's likely the leading option." CNBC (3/30, LeBeau) also noted that "for the first time, the federal government is endorsing the idea of using bankruptcy to clean up GM's massive debts."
Under the headline "President Gives US Automakers A Short Lifeline," the New York Times (3/31, A1, Stolberg, Vlasic) reports on its front page that Obama's remarks "came after a series of somber discussions in which he concluded that a controlled bankruptcy might be the best way to reorganize the two ailing auto giants." The Los Angeles Times (3/31, Bensinger) also reports bankruptcy appears to have become a growing possibility. McClatchy (3/31, Hall, Talev), the Wall Street Journal (3/31, McCracken, et al.), and the Washington Times (3/31, Hill) also cover the story.
GM, Peugeot Shares Tumble Following CEO Departures. Bloomberg News (3/31, Reiter, Frost) reports, "General Motors Corp. and PSA Peugeot Citroen shares tumbled after their CEOs were ousted as governments showed signs of tightening control over the crisis-plagued auto industry." GM "plunged as much as 21 percent in German trading, while Peugeot, Europe's second-biggest automaker tumbled as much as 8.1 percent in Paris."
On NBC Nightly News (3/30, story 3, 1:30, Williams), analyst Chuck Todd said, "You know, there have been so many bailouts, we're kind of numb to it. But this really is a big one. It's Kennedy and the steel industry. It's Reagan and firing those air traffic controllers. It's Truman and the railroads. This is a big moment, pivotal moment. And the other thing about it is not only did the President fire, essentially fire the head of a corporation that's, frankly, an American icon, is that he said that the auto industry is going to be taken over by Washington. Washington has already been all over Wall Street." The AP (3/31, Babington) has similar remarks and calls the warranty announcement an "extraordinary step."
The Detroit Free Press (3/31, Hyde) reports Obama "made clear that the limits of federal aid to automakers was within sight, and that deeper cuts among workers, dealers, creditors and suppliers, along with a possible trip through bankruptcy court, would be needed for the automakers' survival." The Detroit News (3/31, Shepardson, Trowbridge) notes the President "rejected the viability plans the automakers filed in support of the $17.4 billion in government loans they've received," though he "sought to reassure consumers and workers that bankruptcy, if required, would be brief." Said the President, "What I am not talking about is a process where a company is broken up, sold off, and no longer exists. ... And what I am not talking about is having a company stuck in court for years, unable to get out." The News adds that "to reassure customers, the government is unveiling a program to back the warrantees of GM and Chrysler vehicles -- in the event either automaker fails. Both automakers will contribute funds that will be backed by government loans."
The Financial Times (3/31, A1, Braithwaite) notes in a front-page story the President on Monday blamed "'a failure of leadership' from Washington to Detroit for the decline of America's carmakers," marking "the latest step in the administration's increasingly interventionist approach to the auto industry."
USA Today (3/31, Jackson) reports "GM and Chrysler are operating on a combined $17.4 billion in government loans approved by the Bush administration in December. They had until March 31 to prove they were viable to qualify for more loans. The two automakers have asked for another $21.6 billion. ... Ford Motor, the third member of the Detroit Three, has not requested federal bailout funds, and was not included in the president's remarks."
The Washington Post (3/31, A10, Whoriskey, Marr), in a story headlined "Obama Is Stern With Automakers," says that "for both companies, one of the most critical problems is the volume of debt they carry." GM "has $27 billion in outstanding bonds and owes its retiree health plan an estimated $20 billion." The New York Times (3/31, A18, Sanger), Roll Call (3/31, Koffler), and Bloomberg News (3/31, Woellert, Hughes) also cover the story.
Rejection Of Auto Plans Helps Stocks Plunge. The CBS Evening News (3/30, story 4, 0:15, Couric) reported that "the rejection of the GM and Chrysler restructuring plans helped send stock prices sharply lower today. The Dow plunged more than 250 points. The NASDAQ lost 43." NBC Nightly News (3/30, story 4, 0:15, Williams) also said "investors were rattled by today's events, especially the ripple effects through the car business." The AP (3/31, Lepro, Paradis), USA Today (3/31, Shell), the Financial Times (3/31, Stacey), the Wall Street Journal (3/31, McKay, Curran), the Washington Post (3/31, A11, Mui), and the Washington Times (3/31, Weber) also attribute the stock decline to the auto industry announcement.
Bankruptcy Now The "Leading Option" For GM, Chrysler. On ABC World News (3/30, story 3, 1:40, Gibson), George Stephanopoulos was asked whether the Administration wants GM and Chrysler to go into bankruptcy. Stephanopoulos said, "I think that's going a little bit too far...but bankruptcy is very much on the table right now and Administration officials tell me it's likely the leading option." CNBC (3/30, LeBeau) also noted that "for the first time, the federal government is endorsing the idea of using bankruptcy to clean up GM's massive debts."
Under the headline "President Gives US Automakers A Short Lifeline," the New York Times (3/31, A1, Stolberg, Vlasic) reports on its front page that Obama's remarks "came after a series of somber discussions in which he concluded that a controlled bankruptcy might be the best way to reorganize the two ailing auto giants." The Los Angeles Times (3/31, Bensinger) also reports bankruptcy appears to have become a growing possibility. McClatchy (3/31, Hall, Talev), the Wall Street Journal (3/31, McCracken, et al.), and the Washington Times (3/31, Hill) also cover the story.
GM, Peugeot Shares Tumble Following CEO Departures. Bloomberg News (3/31, Reiter, Frost) reports, "General Motors Corp. and PSA Peugeot Citroen shares tumbled after their CEOs were ousted as governments showed signs of tightening control over the crisis-plagued auto industry." GM "plunged as much as 21 percent in German trading, while Peugeot, Europe's second-biggest automaker tumbled as much as 8.1 percent in Paris."
