GM, Chrysler May Not Seek Additional Funds

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