Senator Bob Corker says the Obama administration needs to ask tough questions of GM and Chrysler before signing off on any additional funds for the ailing carmakers.
Corker says when the carmakers came asking for government money in December, he tried to put them through restructuring steps similar to bankruptcy, but without the actual bankruptcy.
Since then he says some of the stakeholders haven’t taken that seriously enough, leaving a lot of business unfinished.
“The Obama administration today needs to send a signal to those stakeholders that, ‘Look, we’re serious.’ The restructuring of the debt needs to occur, the completing the negotiations with the UAW so they’re competitive needs to occur.”
Corker says he spoke to leaders from Chrysler and GM this week, as they released viability plans mentioning bankruptcy as a possible option, though still not a good one.
Corker says he wants to know when and under what conditions the companies will stop coming back for more money. But he says the next round of funding for the auto companies will be up to the president, not Congress.