Tuesday, February 17, 2009

BREAKING Report : GM & Chrysler submit viability plan to Treasury; GM asks for an additional $16.6 billion, and Chrysler for an additional $2 billion

We all remember when the Bush administration approved and gave GM and Chrysler loans to save the two broken companies. Well now, with the Obama administration, they want even more money. That's why both GM and Chrysler released new viability plan to the Treasury, to approve to their desperate need.
So, General Motors today presented its long-term viability plan to the U.S. Department of Treasury. The plan, which is the first of the two status reports required by the loan agreement, outlines GM’s restructuring plans. GM has asked the government for an additional $16.6 billion to help it survive. The Detroit automaker said that without the new funding, it will run out of money sometime in March. Under the new plan submitted to the Treasury Department, GM’s loans and lines of credit will now total $30 billion. Earlier today, GM just received $4 billion in the second round of the previously approved $13.4 billion. It is now requesting another $4.6 billion to meet its original request of $18 billion made in December. GM is also seeking a $7.5 billion revolving line of credit to help it if auto sales continue to decline later this year or next year. The automaker said it will begin repaying the loans in 2012. GM also said that it will also cut 47,000 jobs globally by the end of 2009 and will close five U.S. plants by 2012.
On the other hand, Chrysler also presented its long-term viability plan to the U.S. Department of Treasury. However unlike GM, Chrysler said that it is seeking an additional $2 billion to its original $7 billion loan request. Chrysler also showed what they'll be doing in the next few years. Such as, bringing Fiat cars to the U.S soon, because of the Fiat-Chrysler partnership. Chrysler also announced that they'll be releasing its first electric-vehicle sometime in 2010. Chrysler also said that it will begin payback of its loans by 2012.

So could the Obama administration and the Teasury possibly approve to GM and Chrysler needings? Time will only tell us the answer.

Source: [General Motors , Chrysler LLC Group]

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