Washington Shakes Up Detroit

GM CEO Rick Wagoner is off the wagon. According to The Washington Post, the Obama administration pushed out Wagoner yesterday and told Chrysler that it must form a partnership with the Italian automaker Fiat within 30 days in order to receive more government aid. President Obama has concluded that GM can survive if it cuts costs sharply. It will have 60 days to present a new plan, while Chrysler’s future aid will be contingent on its merger with Fiat. Obama plans to announce the details of the package today, and bankruptcy could still be an option for both companies.