GM, Chrysler in line for more federal aid The Obama auto task force is preparing to loan General Motors Corp. about $5 billion in additional federal short-term aid, and Chrysler LLC $500 million, an Obama administration official familiar with the matter said Thursday.
The disclosure assigns a dollar amount to the pledge of continued short-term support issued late last month by the administration, after it rejected GM's and Chrysler's restructuring plans and requests for up to $21.6 billion in additional assistance. The official said the decision was expected to be announced next week -- though the precise amounts were still the subject of talks between the government and the automakers.
The White House said Thursday night no decision had been made about how much either automaker will receive. "No decisions have been made on how much working capital GM and Chrysler will be getting," said spokeswoman Amy Brundage.
Both Detroit automakers say they need the money to survive, as they craft plans they hope will convince the government they can compete in the global marketplace.
Meanwhile, GM could dramatically slash expenses by eliminating its GMC and Pontiac brands, because the company no longer would need to operate factories or pay hourly workers that produce them, analysts said.
GM is studying the fate of the two nameplates as it reviews all of its vehicle lines and prepares to initiate a public bond-exchange offer aimed at slashing $28 billion in unsecured debt. Detroit News
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