GM and Chrysler to get more bailout money

| 21 April 2009 13:15

Apparently the Obama Administration was just bluffing about bankruptcy for the automakers, because when push came to shove, they blinked.  The automakers are to get yet more bailout funds and the dates for restructuring plans hae been pushed back.

General Motors (GM) and Chrysler are to get more loans from the US treasury as the troubled carmakers work on plans to try and make themselves viable.

The two Detroit, Michigan-based giants are seeking to stave off bankruptcy and GM will receive a further 60-day, $5bn loan while Chrysler is to get $500m.

The firms have already received a combined $17.4bn in aid since December.

Both face collapse as the economic downturn has prompted a slump in sales of vehicles worldwide.

The US government has demanded that both firms submit viable restructuring plans before it will consider further aid.

Both companies’ restructuring plans were rejected at the end of March. This latest funding will bridge the gap until they have to present new reorganisation plans.

Source
More US cash for GM and Chrysler – BBC News

avatar About Edward Harrison

Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty years of business experience. He is also a regular economic and financial commentator on BBC World News, CNBC Television, Business News Network, CBC, Fox Television and RT Television. He speaks six languages, a skill he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.

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