DETROIT — With just 15 days before a deadline to justify their government loans, General Motors and Chrysler are trying to pull together restructuring plans that prove they can become viable again.
But as GM’s board meets to discuss its plan and other issues, industry analysts and lawmakers are wondering if the automakers have enough time to negotiate such complex plans before Feb. 17.
Both automakers have had to take billions in government loans to stay in business in the midst of the worst U.S. auto- sales slump in 26 years. Under the loan terms, they must negotiate concessions from labor unions, bondholders and others, with a so-called “car czar” to be appointed by President Barack Obama.
Because some terms imposed by the Bush administration are being disputed by the United Auto Workers union, the companies are in the position of having to meet loan terms that are still uncertain.
“Without knowing who’s in charge and without knowing what approach the Obama administration is going to take, it does complicate the negotiating process that’s going on,” said Martin Zimmerman, a University of Michigan business-administration professor.
