- auto industry - Chrysler - GM - USA
AFP - The US Treasury will lend a further five billion dollars to General Motors and 500 million dollars to Chrysler as the troubled automakers work on their viability plans, officials said Tuesday.
A report released by the inspector general for the Treasury's financial bailout program specified the amounts of working capital to be provided under rescue plans for the two Detroit, Michigan-based giants, which are seeking to stave off bankruptcy.
GM would get up to five billion dollars for its 60-day period to revamp its plans for viability, the report noted.
Chrysler will get 500 million dollars as it seeks to seal an alliance with Italian automaker Fiat to prove its ability to weather the crisis in the auto industry.
GM and Chrysler have received a combined 17.4 billion dollars in public aid since December, in an effort to stave off collapse as the world's largest economy suffers its second year of recession.
President Barack Obama's administration has demanded they submit viable restructuring plans before further aid will be considered, and also has raised the prospect of bankruptcy with government support.
The funds come from the Troubled Asset Relief Program passed by Congress last year, providing some 700 billion dollars in an effort to stabilize the US financial system.
The government has also pledged up to five billion dollars to auto suppliers in financing to help offset the impact of problems with the auto manufacturers.