So the big news today is that the Obama Administration is conducting a forced “reorganization” of General Motors (R.I.P. Pontiac).
The Plain Dealer reports that GM will cut 21,000 jobs and close 42 percent of its dealerships. A lot of bond holders are angry with the deal and feel they’re being shortchanged. Meanwhile, retiree healthcare benefits are in jeopardy if the company enters Chapter 11, which is a real possibility.
Rather than blast Obama, The Detroit News today writes about the efforts the president is making to soften the blow for Michigan.
$18.4 million in federal aid and tax breaks are being directed to the state, The News reports. The White House projects the investment will save 109,000 jobs in the state.
Obama also earmarked some of the stimulus money for automakers and agreed to buy 17,600 cars from Detroit’s Big Three with $285 million in stimulus money.
I’m glad to hear about this because Michigan is going to need every penny. Way to go Detroit News for taking a different perspective on a national story!