GM, Chrysler to Receive More Aid

Things are looking good for the two American manufacturers, as the March 31st deadline draws ever closer. Both GM and Chrysler are likely to get a green light to receive supplemental aid, as Obama administration's task force intends on recommending such a measure, Autonews reported.

The news was brought forward by Michigan Senator Carl Levin, who said that "it is clear" further assistance will be granted only if the manufacturers agree to new conditions and restructuring, without giving any other details about the new plan.

Lawmakers claim that the task force leaders will make separate recommendations for GM and Chrysler, as the companies asked for $16 billion and $5 billion, respectively.

The first step into the implementation of the restructuring plans already agreed with the US government was taken on Tuesday by GM, who began its 47,000 job cutback program. By the end of 2009, 18,000 workers in the US will leave GM, the rest of the personnel to be scaled down coming from the company's worldwide operations.

Chrysler employees have until tomorrow to decide whether to accept the manufacturer's voluntary departure offer. The company is currently under investigation from the state of Indiana for an alleged securities fraud after the collapse of its joint venture with Getrag Transmission.

None of the two have reached any agreements with their UAW representatives, a key aspect for securing additional aid. GM is still trying to reach an agreement with its bondholders.

Last week, the Obama administration granted auto suppliers a $5 billion aid, in an effort to prevent this segment of the industry from collapsing. It is yet another sign for both GM and Chrysler to take into account when they anxiously await the Tuesday deadline.
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About the author: Daniel Patrascu
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Daniel loves writing (or so he claims), and he uses this skill to offer readers a "behind the scenes" look at the automotive industry. He also enjoys talking about space exploration and robots, because in his view the only way forward for humanity is away from this planet, in metal bodies.
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