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Detroit's woes dominated the day's news. President Barack Obama's decision to reject the applications by General Motors and Chrysler for an extension of federal loans were the lead item on all three newscasts. He sent both moneylosing firms back to the drawing board to fix their restructuring plans, with GM firing its boss Rick Wagoner in the process. Each newscast kicked off from the White House and followed up with the reactions of autoworkers to their bosses' looming bankruptcies. CBS added an interview with Wagoner's replacement CEO Frederick Henderson. In all the Story of the Day occupied fully 39% (22 min out of 58) of the three-network newshole.

"Bad news" was how ABC's Jake Tapper characterized Obama's message to the two firms. He gave GM a 60-day deadline to fix its restructuring plan to make it "one more realistic about slumping sales and more aggressive about debt." Chrysler was given 30 days to finalize a deal with Fiat, the Italian automaker: "Merge or Die," was how Tapper put it. CBS' Chip Reid noted the incentives Obama offered if the firms could deliver. The Fiat-Chrysler merger would receive a $6bn loan; GM would receive a $17bn second tranche of a $30bn total. NBC's Chuck Todd called Obama's decision to request that CEO Wagoner be fired "a big moment, a pivotal moment." In effect, Todd interpreted, "he said that the auto industry is going to be taken over by Washington."


Andrew Tyndall 3/31/09 10:48:45 pm

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