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Chrysler and GM 'to be bailed out'
17 March 2009
Chrysler and GM are looking increasingly likely to be bailed out by the US government.
President Barack Obama set up a taskforce to investigate the car makers' finances earlier this year, and its findings will dictate whether the companies receive further aid.
Both Chrysler and GM, which have already received $17.4 billion (£12.4 billion) between them in aid, have until 31 March to convince the taskforce of their long-term viability.
However, Steven Rattner, a former banker and private equity investor who is the taskforce's chief adviser, told the Bloomberg news agency today that 'bankruptcy is not our goal nor a desirable outcome.'
'We'll bring all the resources of the Government to bear on these various stakeholders and try to reach a fair compromise,' he said.
Rick Wagoner, GM's chief executive, met the taskforce in Washington yesterday as well as attending a meeting with Karl-Theodor zu Guttenberg, the German Economy Minister, at the German Embassy, to discuss the company's European subsidiaries.
The two car companies want a further $21.6 billion (£15.4 billion) in aid.
GM has warned that allowing it to fail could cost taxpayers as much as $100 billion.
Rattner also suggested that suppliers to the automakers could receive aid.
Car suppliers last month asked the Treasury for $18.5 billion (£13.1 billion) worth of assistance.
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