WASHINGTON, March 30 (UPI) -- Reaction to President Barack Obama's plan for aid to two of three U.S. automakers fell along party lines Monday.
Obama said the government wouldn't allow the U.S. auto industry to "simply vanish," giving General Motors Corp. and Chrysler LLC 60 days and 30 days, respectively, to make dramatic changes or face bankruptcy.
U.S. Senate Majority Leader Harry Reid of Nevada said the administration's decision to send the two Detroit automakers back to the drawing board was driven by "critical and commendable goals" of protecting taxpayers' investment, moving toward energy independence, and helping the companies and the U.S. auto industry survive.
"We will not give these companies a blank check," Reid said in a news release. "As we have maintained since the earliest days of this crisis, if these companies do not develop strong plans to remain viable in the long term, they will lose our support."
Senate Minority Leader Mitch McConnell of Kentucky he's heard Obama's plan before.
"We are now told these two companies are getting their last check from the taxpayers, and that if they don't finally come up with truly viable plans then they'll be forced into bankruptcy," McConnell said in a news release. "Unfortunately, we've heard this before, from both this and the previous administrations."
Obama's decision to ask for the resignation of GM Chairman and Chief Executive Officer Rick Wagoner as a condition was made without advice from Congress, The Hill reported.
"He didn't ask us about it, he informed us," Sen. Carl Levin, D-Mich., told reporters in a conference call Monday. Obama told congressional members Wagoner had to resign so that the administration could show the public it was making an effort at a fresh start with helping the auto industry.
