Daily Auto News Government to Give GM, Chrysler More Aid
Daily Auto News
It’s not the billions they need to stay afloat long-term, but both General Motors and Chrysler will receive short-term government aid as they work to meet government-ordered restructuring deadlines.
Reuters reports, “The Obama administration will make about $500 million available to Chrysler LLC through the end of this month as it seeks to reach an alliance with Fiat, and up to $5 billion through May to help General Motors Corp restructure outside of bankruptcy, an independent oversight report on the Treasury Department’s corporate rescue fund said on Tuesday.” Chrysler has only until May 1 to negotiate a merger with Italian automaker Fiat, or face the withdrawal of government aid. GM must undertake significant restructuring efforts to meet a June 1 deadline, or suffer the same fate.
The aid to Chrysler, Forbes reports, lasts only “through the end of April as it seeks to reach an alliance with Fiat.”
The loan to GM is expected “to last it until the end of May,” according to the U.K.’s AutoCar.
If you’re in the market for a new car, check out the U.S. News rankings of this year’s best cars as well as this month’s best car deals.
Related with this news Japan Auto Store's other car news
