General Motors yesterday got the first of $4 billion in emergency loans from the U.S. Treasury. However, it’s rival, or fellow struggling Detroit automaker depending on how you want to look at it, Chrysler is still waiting. While GM was stern about its needs to get the loan by the end of 2008; Chrysler said that it will need $4 billion as soon as possible or it will run out of cash in early 2009.
So what’s the hold up? According to U.S. Treasury spokeswoman Brookly McLaughlin, the U.S. Treasury is working “expeditiously with Chrysler to finalize that transaction” and said that the Treasury remains “committed to closing it on a timeline that will meet near term funding needs.”
CEO Bob Nardelli sent a memo to worried to Chrysler’s senior leadership team saying: “The Treasury Department has been working to complete these multiple, complex financial arrangements quickly and sequentially,” he wrote. “The magnitude of these discussions are significant, and in the last several days, the Treasury Department has completed the first agreements, which included the TARP investment in GMAC and the loan for GM.”
A source said that details of Chrysler’s loan may not be revealed until Friday.