Obama may find it tough not to meddle in GM affairs

By Caren Bohan and Ben Klayman

WASHINGTON/CHICAGO (Reuters) - U.S. President Barack Obama may find it tough keeping a pledge not to meddle in the management of General Motors Corp once the government takes majority ownership of the giant automaker.

The White House has put a priority on encouraging environmentally friendly technology. It could be tempted to weigh in on issues such as the mix of vehicles.

And lawmakers -- some of whom already have spoken out against a GM proposal to shift some production overseas -- may insist on a voice on everything from the location of plant closures to the pay scales of top executives.

"We're already seeing them force out the CEO, restructure the board and talking about the right kind of cars for them to build," said Douglas Holtz-Eakin, who was a top policy aide to former Republican presidential candidate Senator John McCain.

He was referring to the decision to pressure Rick Wagoner to step down as GM's chairman and chief executive.

"I don't know where that ends and I don't know how you easily end it," said Holtz-Eakin, now a private consultant.

The 100-year-old automaker, once the world's largest, filed for bankruptcy protection to begin what the Obama administration hopes will be a fast-track restructuring.

The slimmed-down company that will emerge is expected to be 60 percent-owned by the U.S. government, which is giving GM a $30 billion cash infusion. The Canadian government and Ontario will take a 12 percent stake.