Rattner: Loans needed by GM and Chrysler “could be considerably higher”

Chief auto adviser to the U.S. Treasury Department, Steve Rattner, said Friday that GM and Chrysler may need “considerably more” aid than the $21.6 billion the two automakers have requested. Chrysler is seeking another $5 billion while GM is asking for another $16.6 billion. Rattner also gave the strongest hint that the Obama administration will pump more money into the auto industry.

In an interview with Bloomberg Television’s “Political Capital with Al Hunt,” Rattner said that the two the amount the two automakers are looking for “could be considerably higher.”

“What they’ve asked for depends on them achieving plans that are somewhat ambitious,” Rattner said, “We haven’t finished analyzing, and I’m not here to pronounce on them. But like all management teams, they tend to take a reasonably — slightly perhaps — optimistic view of their business.”

Rattner said that Obama’s administration may return to Congress to ask for money for the auto industry and said that it may be difficult to win more money from Congress.

– By: Omar Rana

Source: Detroit News