Ford, GM and Chrysler get $15 billion bailout, looking for $6.8 billion more from Canada | Rpmgo.com

The recent depression had a devastating impact on the three automotive giants in Detroit. In order to keep operating, they’ve requested a $34 billion emergency bailout from the US Government. However, the White House and Congressional Democrats agreed on giving them a $15 billion short-term emergency loan, congressional aides said late Friday. It seems that these loan will be given from a special $25 billion program that was initially intended to help the three companies develop more energy efficient technologies, and not from the $700 billion bailout. As you’d expect, the three giants are not really satisifed with this: while Ford is currently doing ok and doesn’t any urgent money (will ask for up to $9 billion only in case the crisis gets worse), GM needs $18 billion ($4 billion of which by the end of the year) and Chrysler needs $4 billion to make it until March.

To solve a part of their problems, the Big Three decided to ask for help from the Canadian government. GM asked for a $2.8 billion financial help (with $800 million urgently needed by the end of the year), Chrysler wants $1.6 billion as soon as January 1, while Ford is in the same situation, needs $2 billion, which will only be used in case the crisis worsens.

The three Detroit based companies and both United States and Canada are in a very delicate situation, because an eventual collapse of any of these three will mean that tens of thousands of employees (from the companies, dealers, suppliers…) will be left unemployed.

Post tags : Chrysler, Ford, General Motors, gm