General Motors, Chrysler get extra 5.5 billion dollars in loans

US News

Apr 22, 2009, 8:41 GMT

Washington - Struggling US carmakers General Motors and Chrysler LLC have received another 5.5 billion dollars in emergency loans from the US government, according to an investigator's report released Tuesday. GM has received 5 billion dollars, and Chrysler got 500 million dollars, keeping the two companies afloat until a government deadline nears for both of them to restructure or be forced into bankruptcy. The emergency loans come on top of 17.5 billion dollars given to the two carmakers since December. US car sales have plummeted nearly 40 per cent since October amid the worst economic crisis in decades. President Barack Obama has given Chrysler a May 1 deadline, while GM got an extra month to complete tough talks to cut its debt and labour costs, which are higher than foreign competitors, or lose the government's support. The new loans were detailed in a report to Congress by Neil Barofsky, a special inspector general charged with monitoring the government's spending on the financial crisis.

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page: 1

The Age of DebtApr 22nd, 2009 - 10:11:24

What good is it going to do if we cannot afford another monthly payment on top of our other debt obligations? Most of us are maxed out. Don't they get it?

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SP4: who knew?Apr 23rd, 2009 - 13:52:35

...that a libnazi president would be the one to front billions for his corporate friends, all for the purpose of getting votes, fromt he largest maker of SUV's and greenhouse gas emitters on earth?

We did.

Funny, I do not see Tonny anywhere...

Change you can believe in.

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GiseleApr 23rd, 2009 - 19:14:26

Have you ever seen so many people so happy about gertting shafted?

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NigelApr 24th, 2009 - 01:16:10

Americans spent and borrowed like there was no tomorrow and now maybe there won't be. At least not the tomorrow they would want.

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SP4: Wrong nigelApr 25th, 2009 - 19:45:13

..spending suggests you GET something in return....

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@Stupid PApr 26th, 2009 - 18:54:51

Your money is gone and you can't pay back what was borrowed - big problem!!