Wagoner claims progress on GM reorganizing plan

Rick Wagoner who is the CEO of GM stated that GM’s reorganizing plan which is demanded by federal government is coming together. On a visit to Capitol Hill Wagoner told the reporters that they are making progress when it’s needed. He refused to tell any of the obstacles yet he stated that there are lots coming up and the time period is short.

Feasibility plans are to be submitted to the Treasury department by the GM and Chrysler LLC on Tuesday i.e. February 17th. Last December the Bush administration demanded the plans as a condition of pledging $17.4 billion in emergency loans to the automakers.

It has become difficult time for the Wagoner in adjusting the operations to the market realities as GM announced the work force and the salary cuts and also stated that they weren’t particularly designed to abide with the federal demands and also mentioned that the plan needs GM to ascertain the resource level which can be afforded by them.

The federal loans must be repaid incase the automakers plan don’t show any long-term feasibility which in turn leads the companies to bankruptcy. No modifications have been done in the conditions of the loans by the new Obama administration. Well Wagoner privately met many officials of Congressional Committees viz. Rep. Henry Waxman, D-Calif., chairman of the House Energy and Commerce Committee; Rep. Edward Markey, D-Mass., chairman of that panel's environmental subcommittee; and Sen. John Rockefeller, D-W.Va., chairman of the Senate Commerce Committee. They also met with Rep. Sander Levin, D-Mich.

And a spokesman of GM by name Greg stated that it was just courtesy calls without any agenda. To the automakers' future Waxman might be crucial. He is a person of national cap-and-trade program who fights and struggles for the climate change and also a sturdy proponent of state green house gas rules.In order to deal with fuel economy and climate change it requires national single standard probably the fuel economy program which is administered by the transport Department.

Wagoner stated that climate change was also one of the topics which have been discussed with the Waxman in his meeting. He praised the chance to sit down and obviously chairman was well informed on the issues and hence it was good to hear his views.