By Joseph J. Schatz, CQ Staff

President Obama’s plan to force a broad restructuring of the U.S. auto industry, including the ouster of General Motors Corp. chief executive Richard Wagoner, drew an endorsement from the Senate majority leader Monday but skepticism from Republican lawmakers from Michigan.

In announcing his plan, Obama said the White House would extend GM working capital for an additional 60 days as it comes up with a “more aggressive” plan to overhaul its operations, and officially announced the departure of Wagoner, who was blasted by lawmakers in his appearances on Capitol Hill late last year.

And saying that Chrysler LLC “is not viable as a standalone company,” the administration said it would extend the company working capital for 30 days as it works to conclude a merger with Italian automaker Fiat. Only if that deal is successful would the White House consider the additional aid requested by Chrysler. Moreover, Chrysler would have to force additional cost-saving concessions from the United Auto Workers union.

Ford Motor Co., is not receiving any federal funds.

Senate Majority Leader Harry Reid , D-Nev., praised the Obama administration “for showing a firm resolve in its negotiations with GM and Chrysler. We will not give these companies a blank check. As we have maintained since the earliest days of this crisis, if these companies do not develop strong plans to remain viable in the long term, they will lose our support.

“I remain confident that these goals are not only essential to pursue, but that they will be achieved,” Reid said.

Republican lawmakers from Michigan, whose economy is dependent on the “Big Three” automakers, were less enthusiastic.

“The president and the Auto Task Force have now determined that they know better how to run these complex manufacturing organizations and are going to force changes,” Rep. Candice S. Miller , R-Mich., said in a statement. “By implementing these changes they now become accountable for achieving success. Accountable for the jobs, accountable for the livelihoods of the families which are at stake and accountable for the survival of American manufacturing. It is now time for us in Southeast Michigan to focus our frustration with this process on demanding that accountability.”

Rep. Thaddeus McCotter , R-Mich., said GM was being treated different than banks that had been bailed out by the government. “Mr. Wagoner has been asked to resign as a political offering despite his having led GM’s painful restructuring to date,” McCotter said in a statement. “When will the Wall Street CEO’s receiving TARP funds summon the honor to resign? Will this White House ever bother to raise the issue? I doubt it.”

But longtime Detroit champion John D. Dingell , D-Mich., expressed support for the deal, and sought to bolster confidence in GM and Chrysler. “I steadfastly believe that both companies are on the verge of emerging from this dark period as industry leaders once again in sales, fuel economy, safety and customer satisfaction,” Dingell said. He warned, however, about putting an “arbitrary” deadline on Chrysler’s deal with Fiat.

Non-Michigan Republicans were divided on the plan. Rep. Darrell Issa , R-Calif., who opposed the initial Detroit bailout, said Obama had “struck the right chord in seeking balance between supporting the American auto industry and calling for a much-needed restructuring of GM and Chrysler.”

But Sen. Bob Corker , R-Tenn., who unsuccessfully tried to broker a deal between congressional Democrats and Republicans on an auto bailout plan in December, called the plan a power grab, and Wagoner’s ouster a sideshow designed to divert attention from a lack of progress on forcing concessions from labor and creditors.

“With sweeping new power the White House will be deciding which plants will survive and which won’t, so in essence, this administration has decided they know better than our courts and our free market process how to deal with these companies,” Corker said in a statement, predicting congressional scrambling to avoid plant shutdowns.

First posted March 30, 2009 12:16 p.m.