Auto Makers to Get $17.4 Billion

The White House plans a $17.4 billion rescue package for the troubled Detroit auto makers that avoids bankruptcy, officials said. The deal would extend $13.4 billion in loans to General Motors Corp. and Chrysler in December and January, with another $4 billion likely available in February. The deal is contingent on the companies showing that they are financially viable by March. “Allowing the auto companies to collapse is not a responsible course of action,” President George W. Bush said, citing danger for the entire national economy as well as the car makers. Bankruptcy, he said, would deal “an unacceptably painful blow to hard-working Americans” across the economy. Bush’s plan is designed to keep the auto industry running in the short term, passing the longer-range problem on to the incoming administration of President-elect Barack Obama . The terms and conditions of the plan established by the Treasury are to mirror those that were voted on by a ... (link)