White House approves more money to help struggling US car giants
21 April 2009

An independent report into the US Treasury’s rescue fund has today revealed that both General Motors and Chrysler are to get yet more short-term financial aid.

Chrysler will receive around $500 million (£345 million) to see it through to the end of April while it tries to broker a life-saving alliance with Fiat. GM will get up to another $5 billion (£3.45 billion), which is to last it until the end of May as it seeks to restructure and avoid corporate bankruptcy.

Some analysts fear that Chrysler will be unable to broker a deal with Fiat, and that bankruptcy is almost inevitable for the American firm. However, if the deal is agreed, it would net up to $6 billion (£4.1 billion) in government aid for Chrysler.

Robert Gibbs, president Obama’s chief spokesman, explained the importance of Chrysler’s survival.

He said: "The President continues to be involved in this issue and understanding the tremendous economic importance both for the overall industry and for the dozens of communities throughout the country that are dependent upon Chrysler and auto parts suppliers that supply Chrysler for good-paying jobs."

Matt Rigby

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