A White House official said today that General Motors and Chrysler will receive another round of government loans totaling $7 billion as previously planned. General Motors will get $4 billion in additional aid while Chrysler will get $3 billion.
Both Detroit automakers will pick up their second installment of loans today as the U.S. Treasury begins reviewing restructuring plans by the two automakers. Both will submit plans to show how their companies plan to be viable in the long-term and repay the government loans. They are expected to file with the U.S. Treasury between 4 p.m. and 7 p.m. EST.
GM has already received a total of $9.4 billion in government loans and Chrysler has received $4 billion.
Barack Obama’s top spokesman told reporters aboard Air Force One today that the President has not ruled out a government backed bankruptcy for the two automakers.