REPORT: GM to get $5B, Chrysler $500M from gov't
by Frank Filipponio on Apr 21st 2009 at 9:59AM 
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]
Reader Comments (Page 1 of 2)
BRAVENRACE 10:05AM (4/21/2009)
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.
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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.
BRAVENRACE 10:12AM (4/21/2009)
You are right. I refuse to believe it.
asdffdsa 10:25AM (4/21/2009)
Let's borrow our way out of debt
It's the new paradigm
blackmage439 10:46AM (4/21/2009)
Sea Urchin:
France has/had a national health care system, a common trait among Socialist countries.
Fail for you sir. Epic fail.
Richard 11:15AM (4/21/2009)
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!
Randy 11:24AM (4/21/2009)
"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.
DJ 10:07AM (4/21/2009)
The balloon above Mullaly should read "Whores!"
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Sea Urchin 10:08AM (4/21/2009)
GM Spent $2.8 Million on Lobbying in Quarter While on U.S. Aid
http://news.yahoo.com/s/bloomberg/axrwa4jpia4
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Richard 11:17AM (4/21/2009)
Great find, Urchin!
Richard 11:19AM (4/21/2009)
Great find, Urchin!
Max 10:16AM (4/21/2009)
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.
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Frank 11:16AM (4/21/2009)
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.
KeatMP 11:40AM (4/21/2009)
@ 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.
Sea Urchin 12:29PM (4/21/2009)
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.
Frank 12:45PM (4/21/2009)
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.
Frank 12:48PM (4/21/2009)
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.
jgp 10:28AM (4/21/2009)
Failout.
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Kaptain75329 11:03AM (4/21/2009)
Genius in it's simplicity - I love it.
*thumbs up*
Ed 10:30AM (4/21/2009)
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.
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