$5 billion more for GM, $500 million for Chrysler to avert bankruptcy
22 April 2009
The Obama administration will extend $500 million to Chrysler LLC and up to $5 billion to General Motors Corp to restructure their operations, an independent oversight report on the Treasury Department's corporate rescue fund said on Tuesday.
As a tentative measure, the administration has set aside up to $500 million to help Chrysler get through April, till its deal with Fiat is finalised, the report said.
It has offered up to $6 billion to help finance the alliance that would give Chrysler access to Fiat's small car technology. In return Fiat is seeking access to a platform for building its specialised vehicles and Chrysler's US-wide marketing network.
Meanwhile, GM sent an email to all employees on Monday announcing it will cut about 1,600 salaried workers this week as part of a previously announced plan. (See: GM to shed 1,600 salaried workers in next 10 days)
On 30 March, President Barack Obama had asked the company to make additional cuts to become viable and receive additional government loans. He had given until 30 April to comply with the government proposal.
GM also aims to cut 37,000 hourly jobs worldwide by the end of the year.