Re: Latest Auto Bailout News
Automotive News Europe
December 19, 2008 06:12 CET
UPDATED: 12/19/08 15:42 CET
WASHINGTON (Reuters) -- The U.S. government will offer up to $17.4 billion in loans to General Motors and Chrysler.
Some $13.4 billion will be made available in December and January from the $700 billion fund that was originally designed to rescue struggling financial institutions, but the loans would be called back if the automakers cannot prove they are viable by March 31, a U.S. government official said.
Viability would be mean that the companies must have a positive net present value, which doesn't necessarily mean immediate profitability but would require them to reach that point relatively soon, the official said.
The three-year loans would require limits on executive compensation and other perks, and the automakers would also have to provide warrants for non-voting stocks. The remaining $4 billion in aid is contingent on the administration seeking access to the second half of the $700 billion financial rescue plan, known as the Troubled Asset Relief Program, the official said.
The Congress really needs to level the playing field in all respects, factors within the US and any vehicles or parts and sub components that are subsidized. Unfortunatley, they decided to go on vacation instead of serving the Nation.
Automotive News Europe
December 19, 2008 06:12 CET
UPDATED: 12/19/08 15:42 CET
WASHINGTON (Reuters) -- The U.S. government will offer up to $17.4 billion in loans to General Motors and Chrysler.
Some $13.4 billion will be made available in December and January from the $700 billion fund that was originally designed to rescue struggling financial institutions, but the loans would be called back if the automakers cannot prove they are viable by March 31, a U.S. government official said.
Viability would be mean that the companies must have a positive net present value, which doesn't necessarily mean immediate profitability but would require them to reach that point relatively soon, the official said.
The three-year loans would require limits on executive compensation and other perks, and the automakers would also have to provide warrants for non-voting stocks. The remaining $4 billion in aid is contingent on the administration seeking access to the second half of the $700 billion financial rescue plan, known as the Troubled Asset Relief Program, the official said.
The Congress really needs to level the playing field in all respects, factors within the US and any vehicles or parts and sub components that are subsidized. Unfortunatley, they decided to go on vacation instead of serving the Nation.
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