General Motors (NYSE: GM) today presented an updated Viability Plan that will speed the reinvention of GM’s U.S. operations into a leaner, more customer-focused, and more cost-competitive automaker. The Viability Plan is included in an exchange offer whereby GM is offering certain bondholders shares of GM common stock and accrued interest in exchange for certain outstanding notes.

The revised Plan accelerates the timeline for a number of important actions and makes deeper cuts in several key areas of GM’s operations, with the objective to make us a leaner, faster, and more customer-focused organization going forward. …click here to read more

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President Barack Obama said he remains strongly committed to providing the auto industry with “serious help.” Obama is eagerly waiting on plans from Chrysler and General Motors next Tuesday to justify a $17.4 billion loan to the two Detroit automakers.

Obama said that if their plans are realistic and show viability in the long-term the government could offer more help. If the government believes that the Detroit automakers still don’t get it he said “Then we’re going to have to ask them to go back to the drawing board.”

His message to the Detroit automakers was: “Get me a plan that works.” GM and Chrysler will be headed to Washington, D.C., next week with their updated restructuring plans.

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In a reversal on Bush’s prior commitment to make a decision on the issue of Corporate Average Fuel Economy (CAFE) standards, the U.S. Department of Transportation (DOT) today revealed it will not make a decision before President-Elect Barack Obama takes office later this month.

Proposed CAFE regulations on new cars would force fuel economy upward toward a goal of 35mpg fleet-wide by 2020. The debate exists on how to graduate the progression toward that goal. The NHTSA has proposed one avenue to raised standards, seeking a total of 25% improvement by 2015, but that would cost the industry about $47 billion over the five-year period. …click here to read more

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