"The deal is tough, but fair," the president said on the plan to steer GM into a "surgical bankruptcy" aimed at the company's revival.
President Barack Obama asserted on Monday that General Motors will "quickly" emerge into a stronger and more competent company and the automaker has gone into bankruptcy protection with full support of the government and all stakeholders of the auto giant.
"The filing for bankruptcy protection paves way for transformation from an old GM to the beginning of a new GM," AMA said in a briefing at the White House soon after the largest American carmaker filed for Chapter 11 bankruptcy in a New York Court.
"I want to assure those who are planning to buy a GM car that their warranties will be saved and guaranteed by the government," Obama said.
"The deal is tough, but fair," the president said on the plan to steer GM into a "surgical bankruptcy" aimed at the company's revival. "The plan puts GM on its path to recovery," he said.
Obama exuded confidence that GM would be revived soon, as has been proved in the case of another carmaker Chrysler.
Updating on Chrysler, which had filed for bankruptcy protection on April 30, Obama said that "just 31 days later, a court has approved Chrysler-Fiat alliance, paving the way for a new Chrysler" and take the ailing carmaker out of bankruptcy in the next few days.
Obama said that the government had no intention to run General Motors and the company would be run by private board and management teams. "They will call the shots ... and not the government," he said.
"Only when a difficult decision needs to be made, the government will make (the decision)," he said.
"GM is much larger and complex (than Chrysler)... it would take more time to come out of bankruptcy," Obama said, but added that he was confident that the process would be fast and GM would quickly move out of the bankruptcy.
"The restructuring plans presented by GM and Chrysler earlier did not call for sweeping changes that they required ... we gave them a stronger plan," Obama said about the government-led "surgical bankruptcy" plans for the two entities."
Exuding confidence that the consumer sentiments would not be hit by the GM's bankruptcy filing, Obama said that Chrysler, despite being under Chapter 11, sold more cars in May than in April.
"GM's sales will grow in the US for the first time in three decades" after it comes out of bankruptcy, he hoped.
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