Obama's Plan for GM and Chrysler

A look at the Obama administration's plan for General Motors Corp. and Chrysler LLC:

GENERAL MOTORS CORP.:

-- 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.

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-- 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.

CHRYSLER:

-- 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.

CONSUMERS:

-- 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.

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