On this day in 2009, President Obama announced a set of restructuring initiatives American automakers General Motors (GM) and Chrysler must follow in order to receive additional bailout loans from the government. The plans were aimed at boosting consumer confidence and implementing cost-cutting measures to keep the brands afloat . After failing to come to an agreement with some of its smaller creditors, Chrysler filed for Chapter 11 bankruptcy 30 days later. To cut costs, GM closed thousands of dealerships and several plants and ceased production on brands such as Pontiac, but it wasn't enough. In June 2009, the automaker too filed for bankruptcy. GM and Chrysler were deeply impacted by the global economic recession in 2008, and in December of that year, both accepted $17.4 billion in federal aid.
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