Chrysler and General Motors submitted viability plans to The White House back in February, and as part of the Treasury Department's agreement with the automakers, the Obama Administration was to give an evaluation of the plans by March 31.  The Administration has determined that these plans are not viable.  As stated in a report released this morning, "In their current form, they are not sufficient to justify a substantial new investment of taxpayer resources."  But, the automakers are not out of time...yet.  The Administration is giving them time and capital to work out viable plans.  GM gets more time than Chrysler--60 days compared to 30--but will have to operate without CEO Rick Wagoner, who is stepping down at the request of the White House.  Chrysler needs to work out a satisfactory partnership with Fiat.  From the White House report:

• General Motors: While GM’s current plan is not viable, the Administration is confident that with a more fundamental restructuring, GM will emerge from this process as a stronger more competitive business. This process will include leadership changes at GM and an increased effort by the U.S. Treasury and outside advisors to assist with the company’s restructuring effort. Rick Wagoner is stepping aside as Chairman and CEO. In this context, the Administration will provide GM with working capital for 60 days to develop a more aggressive restructuring plan and a credible strategy to implement such a plan. The Administration will stand behind GM’s restructuring effort.

• Chrysler: After extensive consultation with financial and industry experts, the  administration has reluctantly concluded that Chrysler is not viable as a stand-alone company. However, Chrysler has reached an understanding with Fiat that could be the basis of a path to viability. Fiat is prepared to transfer valuable technology to Chrysler and, after extensive consultation with the Administration, has committed to building new fuel efficient cars and engines in U.S. factories. At the same time, however, there are substantial hurdles to overcome before this deal can become a reality. Therefore, the Administration will provide Chrysler with working capital for 30 days to conclude a definitive agreement with Fiat and secure the support of necessary stakeholders. If successful, the government will consider investing up to the additional $6 billion requested by Chrysler to help this partnership succeed. If an agreement is not reached, the government will not invest any additional taxpayer funds in Chrysler.

You can read the full report here.  President Obama is expected to speak to the findings in this report later today.  He did speak to the Administration's overall view of the automakers' plans and the government's hope to keep GM and Chrysler afloat yesterday on CBS's Face the Nation.  Here's an excerpt:

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