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GM Pressures Feds To Provide $5B Funding For Chrysler Merger

Posted in auto industry, Chrysler, Detroit, GM, Newsworthy by Suzanne Denbow | October 28th, 2008 | Leave a Reply |

Abandoning any pretense of discretion, GM CEO Rick Wagoner has reportedly been engaging in lengthy discussions with the U.S. Treasury Department in pursuit of funding for what is still be referred to as a “possible” merger with Chrysler LLC. While no official comments on the matter have been made by either Chrysler or General Motors, government officials have confirmed that GM has indeed been actively panhandling on Capitol Hill. Apparently, under the mistaken impression that they are the only automakers experiencing the worst market crisis in decades, GM has been actively campaigning to hasten the disbursement of the $25 billion loan granted by the Energy Department in September. The loan, which is generally regarded as Detroit’s bailout bill, is currently undergoing the final phases of revision and a spokesperson for the Department of Energy said that “it would be premature and speculatory to estimate a timetable” for the loan’s availability.

Meanwhile, White House spokeswoman Dana Merino patiently attempted to remind an antsy GM that even with the extra $5-$15 billion dollar cushion the Energy Department’s loan could provide, it wouldn’t solve GM’s immediate asset problem. Explained Perino, “Those loans are specifically geared toward revamping those factories. That’s not necessarily going to help immediately with a capital problem.” Undeterred, GM spokeswoman Toni Simonetti explained to the press, “We certainly are pursuing avenues to see which, if any, of the federal tools might provide some relief.”

Source: The Detroit News

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