President Obama's Rescue Plan

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Sources tonight have provided Ward's with some early highlights from President Obama's plan to rescue General Motors and Chrysler to be announced on Monday.

GM CEO and Chairman Rick Wagoner is out, having resigned Sunday. GM President and COO Fritz Henderson will be named as CEO while Kent Kresa, a GM director since 2003, will be named as acting chairman. GM's board of directors will be replaced almost entirely over the next couple of months.

The government will provide GM with adequate working capital for the next 60 days in order to restructure and devise new agreements with bondholders and the UAW. There is no word yet on what concessions, if any, the government will demand of dealers.

Meanwhile, Chrysler will receive enough capital for 30 days for the purposes of entering into a reasonable partnership. Apparently, the government does not believe Chrysler can survive on its own.

Additionally, the government will launch an aggressive warranty guarantee for all GM and Chrysler vehicles purchased.

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