Bush Offers Chrysler and GM $17.4 Billion in Loans - aftermarketNews

Bush Offers Chrysler and GM $17.4 Billion in Loans

The loans will come from the $700-billion in funds originally set aside for the bailout of the financial industry.

WASHINGTON, D.C. – Detroit is breathing a collective sigh of relief this today. At a press conference this morning, President Bush announced that his administration will give General Motors and Chrysler $17.4 billion in loans. The loans will come from the $700-billion in funds originally set aside for the bailout of the financial industry.

According to a report from the Detroit Free Press, terms for the loans include not only the conditions agreed to by congressional Democrats, but new limits sought on the UAW contracts, including matching wage and benefits of foreign automakers with U.S. plants by the end of next year.

The Free Press report stated that $13.4 billion will be available immediately to the automakers and $4 billion will be made available in February, assuming the Obama administration draws down the second half of the bailout funds. As was the case with the proposed legislation that did not pass, if the government does not feel the automakers have made enough progress in their turnaround by March 31, the loans can be recalled.

You May Also Like

Congress Signals Support for Consumers’ Right to Repair

The CAR Coalition says promising progress has been made for congressional action in the coming year.

From BodyShop Business

The CAR Coalition announced that federal lawmakers are signaling unprecedented support for protecting consumers’ right to repair their cars.

As part of the newly unveiled $1.7 trillion government funding package for FY2023, bill language directs the Federal Trade Commission (FTC) to “prioritize investigations and enforcement efforts that protect consumers from unfair acts limiting competition, specifically stemming from [car] manufacturers’ control over telematics systems.”

NTEA Supports Catalytic Converter Anti-Theft Legislation

The Preventing Auto Recycling Theft Act was introduced by U.S. Senators Amy Klobuchar (D-MN) and Ron Wyden (D-OR).

MEMA: R&D Fix Vital for US Competitiveness 

MEMA and member companies sign a coalition letter in support of fixing the R&D tax credit.

Insurers Show Support for Right to Repair

The American Property Casualty Insurance Association calls on Congress to pass the SMART Act and the REPAIR Act.

CAR Coalition: Poll Shows Americans Want Auto Repair Choice

Congress sets hearing on Right to Repair.

Other Posts

Mullen Automotive Locks in First US Dealer

RMA is the first dealer group partner for Mullen’s commercial EV lineup, which is set to launch in the U.S. in 2023.

Volvo Receives Record Order for Electric Trucks in Australia

The trucks will hit the streets of Sydney during the first quarter of 2023. 

Stellantis and Its US Dealerships Move Toward Electrification

Company partners with Future Energy offering individual, comprehensive evaluations and EV integration services.

Tenneco to Supply Solutions for Rivian R1T and R1S EVs

Monroe Intelligent Suspension and Clevite Elastomer Products selected for Rivian’s light truck and SUV models.