• Apr 21, 2009
Is General Motors about to get an additional $5 billlion from the Feds? Will Chrysler be getting another $500 million? The Detroit News seems to think so. Citing Obama Administration sources and a leaked 250-page government report, they say that those figures are accurate. The money will reportedly come in the form of short-term aid via the $700B Troubled Asset Relief Program (TARP). One group we know won't be taking any additional TARP money is Chrysler Financial, allegedly refusing an additional $750M over restrictions on executive compensation included in the agreement.

Reading through the report a bit, The Detroit News also discovered some additional figures. The report says that the Treasury Department has already spent $24.8B on the automotive portion of their program (out of $25B allotted). Of that amount, $13.4B has gone to GM, $4B to Chrysler, almost $6B to GMAC and $1.5B to Chrysler Financial. An additional $1.25B will be used to pay for that warranty guarantee program designed to back the warranties of GM and Chrysler vehicles should either company go under.

There has been no confirmation from Washington yet, but you can bet we'll report it when it becomes official.

[Source: The Detroit News]


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  • 28 Comments
      • 5 Years Ago
      Really? More money as GM spirals towards bankruptcy?

      Chrysler shouldn't get anything since they are owned by Cerberus who has a massive stockpile of cash. If they want to fix Chrysler they have the money to do it. Plus Chrysler used it's bailout money to fund massive incentives like $7,000 on a new Ram in January and February.

      For GM how has the first payment helped them at all? Sure it kept the lights on in the Ren Cen but that's about all I can see it did. All their product development is frozen, their production is still too high, they have too many dealers and too many brands. Hummer was going to go away in March and then it switched to May and right now I see Hummer being there in August! They also missed the March deadline they agreed to that was supposed to show they are viable as did Chrysler.

      Nothing has changed since the first infusion of cash and that ticks me off. I supported the first set of loans but I haven't seen any progress so I cannot support another bailout. It's time for a quick bankruptcy with government support. That's how the next bunch of cash should be spent.
        • 5 Years Ago
        you have no clue what you're talking about. product development is most definitely not frozen at GM. also, cutting brands and dealerships are not things that happen over night. anyone who was expecting GM to take govt loans and have everything turn around in a couple months is on crack. these things take time. and if REAL progress is being made, it won't necessarily be immediately visible to the public
      • 5 Years Ago
      Failout.
        • 5 Years Ago
        Genius in it's simplicity - I love it.

        *thumbs up*
      • 5 Years Ago
      Does this "paltry" 500m for Chrysler mean that the Fiat deal is close to being finalized.

      Or to keep Chrysler around long enough to sell off Jeep, and eventually wind down.
      • 5 Years Ago
      dont worry about the 5b they are cutting budgets and trimming 100m out....
      5b is pocketchange compared to 100m.... right?
        • 5 Years Ago
        That's what I was wondering too. Hey the budget is THREE trillion dollars, but ONE HUNDRED million is being cut by Obama. One hundred is beigger than three, right?
      • 5 Years Ago
      soon our paycheck stubs will have will have a seperate deduction line for "GM life support"
        • 5 Years Ago
        Andy,

        Hell, don't worry about that!

        Our kids can pay for it.

        Or the Chinese.

        We'll just print more $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$!
        • 5 Years Ago
        Richard:

        Even the Chinese have said "no thanks" to funding our spending! They're terrified that the bonds they hold will be worthless because the gov. will have to print money to pay them.

        For the record China has a billions of dollars in 20 year bonds comming up they bought in the 1990's. That's really scary.
      • 5 Years Ago
      The balloon above Mullaly should read "Whores!"
      • 5 Years Ago
      GM has used $250 million dollars of the their TARP money to Lobby the Government. Spend millions to get billions.
      • 5 Years Ago
      Yeah, its starting to go too far, Chrysler has zero competitive product, turning it around would require every of their cars to be re-designed entirely. Scrap Chrysler and let GM rise through fast-track bankruptcy reorganization.

      But I'm willing to be proved wrong, and since the federal govt is printing its own money, inflation is what's more dangerous than debt.
        • 5 Years Ago
        KeatMP,

        You mean the Challengers that I have been seeing on the road are just test mules 'cause they ain't really out yet? And the exsisting 300, Charger, and Minivans? They aren't out yet either? Oh I forgot: the Journey, Wrangler, and Patriot. For small off-road capable SUV (I know it's not trail rated) that has more car like features than Wrangler there is nothing that comes close. RAV4? Are you kidding? It's too big anyway. CRV? Do they even make these anymore? Now that the interior has been redone the Patriot is even better.
        • 5 Years Ago
        @ Frank

        Al of the cars you listed are not in dealerships and wont be for a couple years, minus the ram.

        Name one car Chrysler makes that's in dealerships now that competes very well with its competition.
        • 5 Years Ago
        Yea, that new Ram, new Grand Cherokee, Challenger, 300 and Charger (about to be replaced) and the minivans are so uncompetitive in their classes. Meanwhile GM has cometitive and uncompetive cars too. And they cost more than 3 times to bailout than Chrysler.. (19.4 billion to just 5.5 billion total) Scrap GM and let Chrysler rise through fast-track bankruptcy reorganization.
        • 5 Years Ago
        KeatMP,

        You mean the Challengers that I have been seeing on the road are just test mules 'cause they ain't really out yet? And the exsisting 300, Charger, and Minivans? They aren't out yet either? Oh I forgot: the Journey, Wrangler, and Patriot. For small off-road capable SUV (I know it's not trail rated) that has more car like features than Wrangler there is nothing that comes close. RAV4? Are you kidding? It's too big anyway. CRV? Do they even make these anymore? Now that the interior has been redone the Patriot is even better.
        • 5 Years Ago
        Keat, well they do have certain cars, like that SUV that looks like minivan, was a best selling vehicle in Canada last month (the name escapes me), Town and Country, Charger is pretty good, Jeeps are solid (Wrangler and Cherokee)

        So you are right for the MOST part, but they do have something.
      • 5 Years Ago
      Looks like a bottomless pit.
      • 5 Years Ago
      Hussein spends like a newly rich po' person. Except he STOLE IT from us.
      • 5 Years Ago
      This is ludicrous. One bankrupt organization bailing out another. What did GM do to get to this point? Poor management and legacy costs are two of the bigger reasons. Same with the US Government. I'll trust them to run a company when they prove they can run the USA. Until then, it's just throwing good money after bad.
        • 5 Years Ago
        Let's borrow our way out of debt

        It's the new paradigm
        • 5 Years Ago
        "Sea Urchin 10:07AM (4/21/2009)

        We are a Socialistic country, this is what socialists do. You have a problem with that? Move to France."

        We are a country by the people and for the people! If you don't like the way things are going you have the freedom to step up and change them. Or you could just post your frustrations on a blog that only car enthusiasts' (and fan boys) read.

        My suggestion is you get involved with your local Government such as Senators and Town Officials, voice your opinion to someone that matters (other than us awesome ABers) and get something done! And for the love of God, be careful who you vote for! And if you don't see anyone worth voting for and you see a void, run for the position of office yourself!

        Henry Ford once said "You can't build a reputation on what you are going to do". And I say "You can't form a country the way you want it if all you do is bitch to the wind". Get involved and do something because the folks that are your opposition are obviously winning so they must be doing something.
        • 5 Years Ago
        Sea Urchin:

        France has/had a national health care system, a common trait among Socialist countries.

        Fail for you sir. Epic fail.
        • 5 Years Ago
        Got to pay back them unions for all that Barak votin'!

        I think Ford better take some $$$ here, lest they be left at a significant disadvantage. $5B could develop a new...GT40!

        Of course, if Ford does take some $$$, Bawney Fwank wiw cewtainwy end up in Awan Muwowees office wanting a test dwive. That Bawney is a bad, bad man!
        • 5 Years Ago
        You are right. I refuse to believe it.
        • 5 Years Ago
        We are a Socialistic country, this is what socialists do. You have a problem with that? Move to France.
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