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US taskforce looks at GM and Chrysler

Members of the US Government's auto taskforce met on Friday to review restructuring plans for General Motors and Chrysler.

That came a day after the taskforce met with members of NADA, America's dealer association, to hear their concerns over financing their stock.

A White House spokesman Robert Gibbs said  that the team was trying to figure out how government could be "the best partner" for an industry wracked by credit woes and staggering sales declines that worsen monthly.

"We need a strengthened, retooled, restructured and re-imagined auto industry in this country. Whether the auto industry as we have it now is exactly what we have in a year is something that I think is going to be determined by a lot of factors," Gibbs said.

The panel faces a March 31 deadline to determine whether GM and Chrysler can be commercially viable and deserving of more government aid. The two received a $17.4 billion bailout in December and have asked for an additional $22 billion.

Reuters reported that US analysts expect the task force to "push GM into bankruptcy rather than push back the deadline" if they cannot reach a settlement.

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