Pelosi Calls on Automakers to Submit Restructuring Plans

Posted February 13, 2009 at 12:59pm

Speaker Nancy Pelosi (D-Calif.) and House Financial Services Chairman Barney Frank (D-Mass.) aren’t letting auto industry CEOs forget that the deadline is fast approaching for them to submit their company restructuring plans to Congress. In letters sent Friday to the chief executive officers of Chrysler and General Motors, the leading House Democrats reminded the executives that their restructuring plans are due to Congress next week and that, if they want financial help for their ailing businesses, they will have to prove that they are willing to modernize operations. “As the Feb. 17 deadline approaches … we are writing to stress the importance of your submitting a credible restructuring plan,” the Democratic leaders say. The letter outlines what constitutes a “credible plan.” Criteria include an assessment the company’s ability to ensure long-term viability, a commitment to restructuring debt and protecting health benefits, assurance that taxpayers benefit as corporate conditions improve and commitment to fuel-efficiency requirements.