Professor says giving GM and Chrysler more time could be risky

    By: Tom MacDonald

    President Obama has offered more time to General Motors and Chrysler to get their businesses organized. WHYY’s Tom MacDonald reports an expert in the industry says it could be a dangerous deal for the Obama Administration.

    By: Tom MacDonald
    tmacdonald@whyy.org

    President Obama has offered more time to General Motors and Chrysler to get their businesses organized. WHYY’s Tom MacDonald reports an expert in the industry says it could be a dangerous deal for the Obama Administration.

    Transcript:
    Professor James Dunn of Rutgers University says the Obama plan to help General Motors and Chrysler with temporary financing is dangerous, especially since Congress has not signed off on the plan.

    • WHYY thanks our sponsors — become a WHYY sponsor

    Dunn “This plan is kind of a high risk political plan because Obama is out in front, the White House is out in front taking a responsibility with very little specific authorization from Congress.”

    Bankruptcy would be an option, but would scare buyers from showrooms because of warranty concerns. Some experts say the automakers need to streamline one way or the other.

    Listen:
    Click on the play button below or right click on this link and choose “Save Link As” to download. [audio: reports20090330gmdeal.mp3]

    WHYY is your source for fact-based, in-depth journalism and information. As a nonprofit organization, we rely on financial support from readers like you. Please give today.

    Want a digest of WHYY’s programs, events & stories? Sign up for our weekly newsletter.

    Together we can reach 100% of WHYY’s fiscal year goal