U.S. President Barack Obama rejected the restructuring plans from General Motors and Chrysler on Monday. With European governments getting into the fray to help out the struggling lenders, all this sent absolutely weak signals to the market. The markets tumbled down on renewed worries about the health of the global financial system.
Obama said the Head of GM, Wagoner’s departure was a recognition that the company needed new direction, but he added that the government did not want to take charge of GM.
“What we are interested in is giving GM an opportunity to finally make those much needed changes that will let them emerge from this crisis a stronger and more competitive company,” Obama said.
“We cannot, we must not, and we will not let our auto industry simply vanish. But we also cannot continue to excuse poor decisions,” he said.