White House planning more auto financial aid

By
March 29, 2009 04:36

The Obama administration was finishing work on a plan to give more financial aid to two Detroit automakers in return for tough cost-cutting measures that will ensure the companies' survival. President Barack Obama's auto industry task force was expected to offer additional aid to General Motors Corp. and Chrysler LLC while setting firm deadlines for the companies to get concessions from their stakeholders. GM and Chrysler, which employ about 140,000 workers in the US, have already received $17.4 billion in government loans to survive the economic downturn and the worst decline in auto sales in 27 years. GM is seeking another $16.6 billion, while Chrysler wants $5 billion more. With the companies running out of money heading into April, any short-term aid would help the auto manufacturers maintain their operations while they seek concessions. Administration officials declined to comment on the plan Saturday.


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