Obama auto team gears up as GM shares hit low

WASHINGTON -- President Barack Obama's task force on the auto industry met for the first time Friday to start reviewing requests from General Motors Corp. and Chrysler LLC for $7 billion in loans before the end of March and up to $21.6 billion over the next couple of years.

The White House said that the panel's leaders -- Treasury Secretary Timothy Geithner and National Economic Council director Lawrence Summers -- "emphasized the urgency of the issues affecting the American auto industry and the need for fundamental restructuring."

The announcement came as GM shares sank briefly Friday to their lowest level in more than 70 years -- pulled down by a steep sell-off in the broader markets and uncertainty about GM's future amidst plummeting global demand for new vehicles.

GM shares hit a low of $1.52 in early trading Friday, before bouncing back to close at $1.77 -- a decline of 11.5% for the day.

On Feb. 20, 2008, GM closed at $25.54. The closely watched Standard & Poor's 500 index finished at its lowest point in more than a decade.

The Obama administration said auto panelists would study the restructuring plans and make recommendations. No date was set for the panel's next meeting. GM and Chrysler each are working against a March 31 deadline to show progress.

Obama has not said whether he supports $5 billion in new loans for Chrysler and $4.6 billion more for GM this year. GM already has received $13.4 billion and Chrysler $4 billion.