Finally! GM and Chrysler receive $17.4 billion in loans
By Andrew C., 27 Aug, 2010. 0 Comments
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The American President, George W. Bush, announced this morning that the US government has agreed to extend $17.4 billion in loans to the struggling car manufacturers of Detroit. The cash has its source from the White House-controlled Troubled Asset Relief Program, a large fund initially set up to assist Wall Street banks. GM and Chrysler will get an initial $13.4 billion with another $4 billion coming in February 2009.
This should be sufficient in keeping both car companies afloat until March next year. Permitting the US car business to fail would not be "a responsible course of action," said the American President. Under the terms of the Bush Administration's current plan, the car manufacturers must show financial feasibility by March 2009 or else the loans will be instantly recalled.
The White House was forced to aid the ailing car manufacturers after the US Senate refused to provide federal loans to the Big Three with strict stipulations attached. Ford has turned away from getting government aid. It claims it can continue operating, as long as the economic situation does not get worse than it already is.
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