"GM needs restructuring as part of pre-negotiated bankruptcy package," he added.
The 2008 Republican presidential nominee is referring to the Sunday resignation of General Motors CEO Rick Wagoner, who was forced out by the White House in an effort to give the embattled auto company a "clean slate."
Industry experts told CBS News that Wagoner is perceived to have been insufficiently willing to face off with the union and that the president is trying to send a message to the company to get serious about cost-cutting if it wants more taxpayer money.
At 11 AM, the president is expected to announce its plans for GM and Chrysler. A White House official said the administration has determined that the plans set forth by both companies do not lead to viability. GM is set to get operating money for a 60-day restructuring process, while Chrysler will get funding for 30 days to complete a deal with Fiat or another carmaker that could lead to another $6 billion in government money.
If the efforts don't work out, both companies could be forced into bankruptcy by the summer.
The automakers have strenuously objected to being allowed to go into bankruptcy, out of fears that doing so would hurt sales because consumers won't buy cars – or warrantees – from a bankrupt company.