GM Will Get $4 Billion Aid...

...or at least this is what a White House aide said today, as reported by Reuters. The news, or should we say pat on the back, comes only hours away from the deadline set for the company to present its case. As for Chrysler, the same undisclosed source said the matter will be looked into separately, as the company's aid request will be treated as a new one.

The two companies are finishing the last details in their respective plans and brace for the best. The aid is highly conditioned by the two manufacturers' ability to present a report that will emphasize both measures taken to cut cost and the manner in which they plan to pay back the loan.

GM's board held a conference call on Monday to review a draft of the document, which is also expected to detail plans for closing plants and disposing of Hummer, Saab and Saturn brands.

President Barack Obama decided to set up a Government task force charged with the restructuring of the US automotive industry. Treasury Secretary Timothy Geithner was put in charge of the group that will oversee the bailout loans.

GM's most vivid fear was that they will not be able to reach an agreement with both shareholders and UAW representatives. While talks between the GM and the shareholders seem to be on track, as shareholders offered proposals to cut GM's debt, no agreement could be reached yet with UAW.

With thousands of jobs at stake, today's developments are perhaps the most important ones this year. Although no one expects the United States Government to let the automotive industry crumble, the way the survival plan will be perceived by the Government is crucial in setting loan and reimbursement conditions.
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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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