13 years ago
TROUBLED carmakers General Motors and Chrysler have been handed millions more in aid by the US Treasury.
The US administration will loan the manufacturers millions as they work to make themselves more viable, reports the BBC.
GM has been handed a further 60-day $5bn loan and Chrysler has taken $500m. This takes the total both manufacturers have received to $17.4bn since December.
Both carmakers are facing collapse as the economic troubles take hold. Car sales for both have been hit badly.
The BBC reports that the US government has demanded the firms submit ‘viable restructuring plans’ before it will consider further aid.
‘This latest funding will bridge the gap until they have to present new reorganisation plans,’ said the BBC News website.
‘Chrysler, which has already received about $4bn in government loans, has until April 30 to make further cuts and take on a partner or face liquidation.
‘It is in talks with Fiat but the boss of the Italian carmaker has threatened to walk away from an alliance if unions do not make concessions.’
GM has until June 1 to complete restructuring or face bankruptcy protection.
