GM chief praises Treasury assistance for auto suppliers

General Motors CEO Richard Wagoner said Friday that the Treasury Department’s decision to provide auto suppliers with $5 billion in assistance is a “very positive move” ahead of the automakers’ submission of final reorganization plans next week.

“I think it’s a very positive move,” Wagoner told Bloomberg news. “I think from it we draw the conclusion that the task force has obviously one a lot to get themselves up to speed and date on the issues.”

GM and Chrysler submitted viability plans asking for billions more in assistance for each company in order to stave off bankruptcy last month. The decision by the Treasury Department yesterday to bail out suppliers could be seen as a positive signal for GM and Chrysler.

Wagoner said that the automakers’ believe they have bottomed out in sales amidst a dismal economy, and will be able to return to viability with more sales and lower costs in the future.

“On balance, I think it’s fair to say more we’re in a situation of the economy and auto sales moving along on what we hope is the bottom,” he said. “I think the baseline plan that we submitted on Feb. 17th is the one we’re going to continue to work with. I think it’s premature right now…to suggest we should be changing our numbers.”

Watch Bloomberg’s interview with the GM CEO here.