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GM, Chrysler May Not Seek Additional Funds

jduval74
Posted January 7 2009 08:45 AM by Joshua Duval 
Category: News

GM, Chrysler May Not Seek Additional Funds
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According to UAW President Ron Gettelfinger, GM and Chrysler may not need any additional financial assistance from the government beyond the $17.4 billion already approved by the White House.  "If we can get by without more money, that's what we want to do," Gettelfinger told Automotive News.

GM had initially asked for $18 billion when CEO Rick Wagoner plead his case in Washington late last year.  President Bush and the Federal Reserve secured $17.4 billion from the $700 billion banking bailout fund for the two companies after Congress failed to pass legislation to aid the Detroit automakers.  $13.4 billion of the funds approved by President Bush will go to GM.

GM and Chrysler have received $4 billion already.  GM is slated to receive another $5.4 billion on January 16, and will receive an additional $4 billion on February 17 if Congress authorizes the second round of loans from the $700 billion bailout.  In addition, the government granted bank holding status to GMAC, GM's financial arm, and then gave it $6 billion in loans. All told, GM is set to receive $19.4 billion in financial aid from Congress, $1.4 billion more than it initially sought.

Source: Automotive News


2 Comments
1. Could it really be...... good financial news from GM and Chrysler? Maybe there is still hope for Detroit.

Posted January 7 2009 07:03 PM  
85CieraHoliday 85CieraHoliday
2. The best insights don’t always come from within.  Check out fresh perspectives for the auto industry at OurPlanforAmerica.com

Posted January 8 2009 10:33 AM  
AmericasPlan AmericasPlan
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