GM, Chrysler to get $5.5B more in government loans

Discussion in 'Wall St. News' started by S2007S, Apr 21, 2009.

  1. S2007S



    What the FU$K is going on, I just dont understand why we need to keep bailing out these worthless, pathetic, FAILING COMPANIES. Without the 1st injection of cash these 2 companies would not even exist. When will anyone realize that what is going on in this bailout economy. Printing our way out of this crisis is not the way to do it, sooner or later it will catch up and create massssssive economical problems that wont be able to be fixed with any kind of intervention.

    GM, Chrysler to get $5.5B more in government loans

    6 hours ago

    DETROIT (AP) — General Motors Corp. could get as much as $5 billion more in federal loans, while Chrysler LLC could get $500 million as they race against government-imposed deadlines to restructure, according to a government report filed Tuesday.

    The quarterly report by a special inspector general on the auto industry and bank bailout programs says the money will be made available for working capital. GM has until June 1 to complete restructuring plans that satisfy the government's auto task force, while Chrysler has until April 30.

    A person briefed on the plans said Tuesday that the exact amount of the loans have not been finalized and will be worked out with the companies. The person asked not to be identified because the negotiations are confidential.

    GM already has received $13.4 billion in government loans, while Chrysler has received $4 billion.

    The government's auto task force rejected both companies' restructuring plans on March 30 and gave Chrysler until the end of April to make further cuts and take on a partner or face liquidation. If GM doesn't meet its deadline, it will be forced to restructure under bankruptcy protection.

    GM CEO Fritz Henderson said last week that the automaker would need $4.6 billion during the second quarter. A Chrysler spokeswoman said only that the company has not received any more money beyond the initial $4 billion.

    The inspector general's report filed Tuesday says that as of March 31, the Treasury Department had spent $24.8 billion for the Auto Industry Financing Program, out of a projected initial total of $25 billion. The money includes aid to Chrysler and GM, plus their financial arms, Chrysler Financial and GMAC Financial Services.

    The Treasury also has estimated that it will spend up to $1.25 billion to guarantee warranties for people who buy Chrysler or GM vehicles during the restructuring period. The program is designed to reassure consumers that their warranties will be honored, according to the report, which was prepared for Congress.
  2. How happy Ford shareholders must feel that the government is actively working to destroy their investment.
  3. What is going on is bailing out the union. Unions contributed huge amounts of money and manpower to obama and dems and now it is payback time.
  4. Obama is not going to let either company go bankrupt.

    It is all a ploy to buy them time so they can increase sales and say everything is great.
  5. Perhaps true.
    But let's not forget that your beloved George Bush and his buddies "punted" in the 4th quarter of last year and bailed them out as well to the tune of $17.4 billion.
  6. S2007S


    Sales of course will pick up in the auto industry however selling 16 million cars is a long, long, long time away. If these companies couldn't make it in the greatest fantasy like economy over the last 2-3 decades what makes anyone think they will come out of this restructuring process stronger.
  7. Ain't gonna happen.