US to provide $13.4-bn loan to bail out auto industryDecember 19th, 2008 - 10:40 pm ICT by IANS
Washington, Dec 19 (Xinhua) US President George W. Bush Friday said the government would provide $13.4 billion in short term loan to bail out the country’s crippled auto industry from bankruptcy.”In the midst of a crisis and a recession allowing the US auto industry to collapse is not a responsible course of action,” Bush told reporters here, noting a possible bankruptcy would deal “an unacceptably painful blow to hardworking Americans”.
The $13.4-billion loan, drawn from the $700-billion financial rescue fund, would be available this month and in January next year. Of the sanctioned amount, General Motors will get $9.4 billion while $4 billion will be given to Chrysler LLC, according to the US government.
An additional $4 billion dollars may be available in February.
General Motors Corp and Chrysler LLC have warned they could be collapse within weeks, while Ford Motor Co said it may not need the fund right now.
“These are not ordinary circumstances,” Bush said while announcing the aid, adding that there’s “too great a risk” that a bankruptcy filing would send the economy into a “deeper and longer recession”.
Meanwhile, Bush said the restructuring the auto industry would require “meaningful concessions” from all involved in the industry, emphasising the automakers must make reforms.
“The auto makers and unions must understand what is at stake and make hard decisions necessary to reform,” Bush said. “We intend to send a clear message to everyone involved in the future of American automakers.”
All restructuring must be completed by March 31 to show how they would restructure to ensure their survival.
- Chrysler repays $5.1 billion in TARP loans - May 25, 2011
- Chrysler repays $7.6 bn to US, Canada - May 25, 2011
- Fed grants GM's financial arm to avail bailout funds - Dec 25, 2008
- Clint Eastwood sizzles in SuperBowl's Chrysler ad - Feb 07, 2012
- Chrysler receives $4 bn US government loan - Jan 03, 2009
- U.S. auto industry recovers dramatically in one year - Apr 22, 2010
- Restructure or face bankruptcy, Obama tells US carmakers - Mar 30, 2009
- US carmakers take bail-out plea before Congress - Dec 05, 2008
- GM Repays Loans Much To The Surprise Of Many Analysts - Apr 22, 2010
- Obama asks GM, Chrysler to shape up or ship out - Mar 30, 2009
- GM announces new cost cuts, axes Pontiac for survival - Apr 27, 2009
- GM, Chrysler submit restructuring plans in bid for survival - Feb 18, 2009
- Chrysler declaring bankruptcy, seals deal with Fiat (Lead) - May 01, 2009
- GM in last-ditch talks to avoid bankruptcy as deadline looms (Lead) - May 23, 2009
- Chrysler, Ford sales up in January - Feb 02, 2012