GM Given Another $2 Billion

By: Associated Press
By: Associated Press

Taxpayers invested another $2 billion in General Motors Corp. this week as the struggling auto giant continued efforts to restructure and avoid bankruptcy court.

The Treasury Department said Friday it lent the additional money to GM on Wednesday to provide working capital. The loan pushes the total amount of GM's government aid to $15.4 billion after the company said it would need more money in the second quarter to stay afloat.

A government report revealed earlier this week that the Treasury was prepared to provide GM with up to $5 billion more in federal loans and Chrysler with up to $500 million more in bailout support as they race against deadlines to restructure.

GM has until June 1 to complete restructuring plans that satisfy the government's auto task force, while Chrysler has until Thursday to finish restructuring and ink an alliance with Italy's Fiat Group SpA.

GM, in a restructuring plan filed with the government in February, had said it would need $2 billion more in federal loans in March and another $2.6 billion in April. But last month Chief Financial Officer Ray Young said the company's expense cuts helped to hold off the need for the March installment.

GM CEO Fritz Henderson said last week that the automaker would need $4.6 billion during the second quarter.

In addition to the $15.4 billion, the automaker's financial arm, GMAC Financial Services, has received $5 billion in government aid, plus GM received a $1 billion loan to buy more equity in GMAC.


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  • by DAN Location: JACKSON on Apr 25, 2009 at 05:29 AM
    I PERSONELLY USED TO DELIVER TO GM PLANTS TEN YEARS AGO AND IT IS TRUE TO SEE SOME OF THESE WORKERS HIDING IN THE TRUCK RECEIVING AREAS SMOKING POT OR DOING SOMETHING ELSE WERE THE CAMERAS CANT SEE THEM,ALSO I USED TO HAVE TO WAKE UP THE MAN TO SIGN MY PAPER WORK EVERY! WEEK! HE HAD MADE HIS OWN LITTLE ROOM OUT OF BOXES WITH A COT. EVERY PLANT I WENT TO THREW OUT MICHIGAN TREATED ME HORRIABLE AND I VOWED NEVER TO BUY ANOTHER GM PRODUCT EVER!!!
  • by JB Location: Jackson on Apr 24, 2009 at 06:21 PM
    I disagree let GM die, they build junk anyway and they build them with drunks and drug users. We do not need them and there poorly built junk.
  • by jen Location: mi on Apr 24, 2009 at 01:05 PM
    I agree with Josh,We need G.M.Another thing alot of us don't want to be forced to buy small cars,I have three kids they have to use a car seat,two booters, how would we ,my husband and kids travel anywhere in some little tweeny, car!?! Keep G.M and and pray we can come up with a Go green car for families like mine,By the way does anyone out there have any brains anymore????
  • by Josh Location: Holt on Apr 24, 2009 at 11:23 AM
    These articles are ridiculous, everyone makes it sound like General Motors is gettiing free money; totally FALSE! General Motors is getting LOANS from the Government that they must pay back, it is all included in all the viability plans! Any one that believes GM should collapse is sadly mistaken. While I believe at least part of the blame is with UAW and yes UAW needs to take any consessions that GM requests to save long term jobs, but its not all UAW's fault, its mostly a worldwide downturn that has halted car sales and put these giant companies in jeopardy. So please America, dont kill the Big 3!
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