By Pamela Gentry, Senior Political Analyst

June 1, 2009 – Defining “viable” will be the measurement for President Barack Obama’s plan to bring General Motors out of bankruptcy after the automaker crafted deals with unions, suppliers and bondholders.

President Obama announces plans to help General Motors flanked by members of his Cabinet.

The president announced the bailout Monday, “I decided, then, that if GM and Chrysler and their stakeholders were willing to sacrifice for their companies’ survival and success; if they were willing to take the difficult, but necessary steps to restructure, and make themselves stronger, leaner, and more competitive, then the United States government would stand behind them.”

Standing behind the two automakers could be one of the rarest moments in modern business, government intervention and American capitalism.  Now the U.S. government has 60 percent controlling interest in one of the world’s largest automaker with another 12.5 percent owned by the Canadian government.

“The agreement may buy some time, but does nothing to ensure GM’s success,” House Republican Leader John Boehner of Ohio told The Associated Press. “The only thing it makes clear is that the government is firmly in the business of running companies using taxpayer dollars.”

But Obama is disagrees, “What we have, then, is a credible plan that is full of promise.  But GM can’t put this plan into effect on its own.  Executing this plan will require a substantial amount of money that only a government can provide.”

“We are acting as reluctant shareholders because that is the only way to help GM succeed,” the president said.

The president spoke with Detroit’s newly elected Mayor Dave Bing yesterday, a White House official told me.  With the auto giant shedding some 21,000 jobs, 2,600 dealers this will greatly impact the city of Detroit and the state of Michigan already suffering from the industry’s demise.

The White House spokesman wasn’t sure what Obama and Bing discussed, but my guess is t discussed the bailouts, the bankruptcy plan and GM’s recent threats to move the headquarters from the Motor City. The loss of the headquarters would be another devastating blow to the city of Detroit.  

GM is marking 100 years in the auto business and there is no clear indication how long their new partners, the U.S. Government will be the majority shareholder.  White House press secretary Robert Gibbs said, “I don’t know that there is a timeline.”

Obama is optimistic, saying [60-90 days] GM would emerge a new and well-managed company able to “out-compete automakers around the world.”