As a result, the federal government has agreed to funnel a $30 billion investment into GM, entitling the taxpayers to ownership of about 60 percent of the automaker, he said. "This may give some Americans pause," Obama admitted.
"We are reluctant shareholders," he added. "What I have no interest in doing is running GM. They, not the government, will call the shots. The federal government will refrain from exercising its rights — where to open a new plant or what kind of car to make. The new GM will make that decision."
The president said that an unprecedented financial crisis "forced us" to get involved with General Motors and Chrysler. He predicted that the GM bankruptcy proceeding will "take more time for GM than it did for Chrysler," explaining that "GM is bigger and more complex."
"GM will emerge as a stronger and more competitive company," Obama said. "If you are considering buying a GM car, your warranties will be safe. This will mark the beginning of a new GM. Building a leaner GM will come at a cost. It will take a painful toll on many Americans.
"I know you've seen more than your fair share of hard times. I will not pretend the hard times are over. More jobs will be lost, more plants will close, more dealerships will shut their doors. You are making a sacrifice for the next generation. Your children and all of our children will grow up in an America that still makes things, that still builds cars."
He ended his noontime speech by saying, "I am absolutely confident a new GM will emerge."
Inside Line says: President Obama carefully avoids calling GM "Government Motors," but that nickname is sure to stick. — Anita Lienert, Correspondent
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