GM and Chrysler to get additional short-term loans

An Obama administration official familiar with the matter said that the auto task force is preparing to loan GM and Chrysler addition federal aid. The insider told the Detroit News that GM will get about $5 billion in additional short-term aid while Chrysler will get $500 million.

The loans come as a part of a pledge from the Obama administration for continued short-term support for the two automakers after it rejected restructuring plans that requested up to $21.6 billion in additional aid.

Chrysler has until the end of April to complete a proposed partnership with Fiat while GM has until the end of May to come up with a new restructuring plan or face Chapter 11 bankruptcy.

– By: Kap Shah

Source: Detroit News