Obama Gives GM, Chrysler One Last Chance

President Obama said Monday his administration has "no intention" of running General Motors, even as the White House demanded the resignation of the automaker's CEO and called for a "better business plan" before considering lending more government money to bail out the company.

The president said he was seeking "painful concessions" from GM and Chrysler, but he insisted that he does not want them to become "wards of the state."

But he said neither company has submitted an acceptable restructuring plan, so he's giving them additional time to come back with new proposals.

"These companies -- and this industry -- must ultimately stand on their own, not as wards of the state," Obama said at the White House.

Obama spoke after the White House forced GM CEO and Chairman Rick Wagoner to step down. The president said the move was not a "condemnation" of the chairman -- rather a "recognition that it will take a new vision and new direction to create the GM of the future."

He said his interest lies in giving the company the opportunity to make "much-needed changes" so that it can emerge profitable and competitive.

"Let me be clear. The United States government has no interest in running GM. We have no intention of running GM," Obama said.

GM and Chrysler, which employ about 140,000 workers in the U.S., faced a Tuesday deadline to submit completed restructuring plans, but neither company is expected to finish its work.

Instead, the administration will give Chrysler 30 days to work out a deal with Fiat and GM 60 days to come up with a new restructuring plan.

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