GM asking government for $10 billion in aid to purchase Chrysler

Posted: Oct 28, 2008
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As reported last week GM is looking to the Congress for some extra needed cash in buying out Chrysler LLC. The two companies are even looking at a merger that would save some of Chrysler’s operations running to save American jobs in order to get a pat on the back from the government. So how much financial aid is GM looking for?

According to two sources that spoke with Reuters, GM and Cerberus Capital Management have asked the U.S. government for roughly $10 billion to support the merger between GM and Chrysler LLC. $3 billion of the will include in an exchange for preferred stock in the new merged automaker.

The source, who was not authorized to take the matter public, said the U.S. Treasury Department is already considering the request and will have a decision by this week. The $10 billion would be in addition to whatever funds would be allocated to the companies under the already approved $25 billion program.

 

Source: Automotive News (Subscription Required)


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  • zermatt

    This is wrong.

    One of the two needs to die in order for the US industry to move forward. At this rate, every industry will be looking for a hand out. I can't wait for the dry cleaners and the pet shops to make their pleas.

    Finally, the UAW must love this. No additional concessions from them to make these deals happen just affirm that the US auto industry is doomed.

  • zermatt

    This is wrong.

    One of the two needs to die in order for the US industry to move forward. At this rate, every industry will be looking for a hand out. I can't wait for the dry cleaners and the pet shops to make their pleas.

    Finally, the UAW must love this. No additional concessions from them to make these deals happen just affirm that the US auto industry is doomed.