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GM, Chrysler Get $5.5B More Taxpayer $

From a gladdened Associated Press:

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

DETROIT – 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…

If the plan is for these two auto makers to have controlled bankruptcies, is this not more money being thrown after bad?

Mr. Obama could have saved $5.5 billion (as opposed to his vaunted $100 million) right here.

This article was posted by Steve on Tuesday, April 21st, 2009. Comments are currently closed.

4 Responses to “GM, Chrysler Get $5.5B More Taxpayer $”

  1. marinetbryant says:

    It’s been said the bankruptcy will involve splitting the company into two parts-one worth something to be sold to hedgefunds and “friends”, I imagine, and a toxic worthless part to be hung around taxpayer neck.

    Tom

    • JohnMG says:

      …..” GM has until June 1 to complete restructuring plans that satisfy the government’s auto task force, while Chrysler has until April 30……”

      Key words: …”that satisfy the government’s auto task force….”

      Will somebody please sound the “Mission Impossible” theme.

  2. proreason says:

    $200B is the eventual payoff for the UAW…nothing less.

    The blood money will continue for at least 2 years.

    That portion of redistribution will cost you 1/5th of what you pay in income taxes annually.

    In a couple of years, you will hardly notice that piddling sum.

  3. U NO HOO says:

    People compare Obama to Hitler and call Obama a fascist.

    Well, Hitler did provide the initial specs for the first “Volkswagen.”

    And Obama wants GM to make green cars.

    Etc.


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