US Willing to Give Even More Money to Struggling Automakers

The United States government is willing to provide even more financial support to struggling domestic automakers, including General Motors and Chrysler, a White House official said yesterday. However, no decision will be announced until the two automaker present their viability plans to the government on February 17, he said according to Autonews. In addition, the representative confirmed recent reports that the Obama administration hired some advisers to supervise the restructuring process of the two involved companies but denied to comment on the plans for naming a car czar.

"The administration is engaged at the highest levels -- including the Treasury secretary and the National Economic Council director -- on the issues affecting suppliers, dealers and the industry as a whole," the official told Reuters.

The White House representative insisted the authorities need to closely analyze the viability plans before issuing a decision but admitted that companies should mention in these papers every impossible-to-reach goal, a fact that would allow the country to take the proper decision in a shorter time.

"No decisions will be made on restructuring or anything else until we receive and review the restructuring reports due on (Feb. 17),” he added pointing the automakers may receive additional funding from the United States government if needed. "If the companies have determined some of the targets are not possible to meet in a timely fashion, they have the opportunity to explain their circumstances in their presentation.”

Both General Motors and Chrysler received $17.4 billion in funding in December as the companies experienced very low sales corroborated with reduced demand and a global credit crunch. They are now required to submit a restructuring plan to the United States by February 17 and demonstrate their viability by March 31.