Detroit News

GM to get $5B, Chrysler $500M in fed aid

David Shepardson / Detroit News Washington Bureau

Detroit -- General Motors Corp. will get up to $5 billion and Chrysler LLC $500 million in short-term aid, according to a 250-page government report obtained Monday by The Detroit News.

The Detroit News reported Friday that GM would get about $5 billion and Chrysler $500 million, citing an Obama administration official, which prompted a denial from the White House.

The short-term aid figures are disclosed in the report from the Treasury Department's Inspector General on the $700 billion Troubled Asset Relief Program.

The report was obtained from a congressional source late Monday.

The report also discloses that the Treasury Department has spent $24.8 billion of its projected $25 billion on its auto program, including $13.4 billion for GM, $4 billion for Chrysler, nearly $6 billion to support GMAC and $1.5 billion to aid Chrysler Financial.

The report also says that the Obama administration initially plans to set aside $1.25 billion to pay for a warranty program that will guarantee the warranties of Chrysler or GM vehicles if either automaker files for bankruptcy protection.

I suppose this is good news, but is it actually doing anything other than prolonging bankruptcy? Unless GM becomes profitable soon, bankruptcy is inevitable and I feel like GM might as well just declare for bankruptcy and start over ASAP rather than continue to borrow money and get nowhere.

I'd prefer GM keep postponing bankruptcy as long as possible because if the declare it, I lose $18k. Buy and hold is NOT OPTIMAL in certain situations.

Didn't I post this or is this an update to that story?

Didn't I post this or is this an update to that story?

Yes, I think that was speculation, this has actually passed through.

I gotcha.

What is General Motor?

Yes, I think that was speculation, this has actually passed through.

That's not how it reads.

DF is right, he posted this "news" before.

In both cases, this "un-news" is attributed to a "person" or a "source" - in this case it also mentions a denial by the administration.

So no, this is not confirmation of anything - it's just speculative filler and rumor.

Yep is is just speculation of an insider.

I wonder if this may be the money they give GM if they split GM into good and bad GM for the surgical bankruptcy? They said they would need 5-8 Billion to pull out Good GM then just sell off and write off the bad.

As it is going it is looking like sell offs for Saab, Hummer etc and bankruptcy for GM in June.

That's not how it reads.

DF is right, he posted this "news" before.

In both cases, this "un-news" is attributed to a "person" or a "source" - in this case it also mentions a denial by the administration.

So no, this is not confirmation of anything - it's just speculative filler and rumor.

Sorry, my bad.