Bush Administration Tells GM It Will Not Provide Cash To Buy Chrysler

A merger between US automakers General Motors Corp and Chrysler is likely on hold until after next week's presidential election, as the U.S. Treasury Department said it will not provide the automakers with aid, the Detroit Free Press reported Friday.

GM had asked the Bush administration and Congress for a loan of about $10 billion to help keep the struggling company operational. It said that it could possibly use the aid to fund a merger between it and Chrysler, which is owned by Cerberus Capital Management.

Many experts have said both companies would need to merge to stop their recent bleeding. GM has only about $21 billion in cash and Chrysler has $11 billion, although most of that was borrowed

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mocashflo924 - 10/31/2008 12:13:40 PM

+2 Boost

Go figure, but it can dish out all kinds of money for Iraq and banks/inventment companys with crooked CEOs. And give billions in tax breaks to oil companys which, as of yesterday Exxon Mobile reported the biggest quarterly profit of any company ever. Makes sense.

Lecsucks - 10/31/2008 3:56:07 PM

-2 Boost

LMAO...

BigShow50 - 10/31/2008 1:48:16 PM

-2 Boost

Well, that explains the quality issues with these domestic junk...lmao!!!

B7FAN - 10/31/2008 1:48:43 PM

+1 Boost

thats why there will NEVER be another bush administration.......EVER

mini22 - 10/31/2008 3:17:33 PM

+2 Boost

Perhaps in a way that if the Big Three declare bankruptsy it will relieve them of their pension liabilities and would break the union hold on them.Saying that provided the auto makers make more fuel efficient cars the government should step in and perhaps buy a percentage of them for a while just like some of the mortgage companies and banks. The only issue with GM and Chrysler merging is that there will be a great deal of job losses. This is one thing the auto industry states do not need. This creates trickle down poverty and affects the housing market further,the retail market etc. You have to think about what the loss of 100,000 or more jobs does for this overall economy. So bailing out the banks but not bailing out the US auto industry really does not make sense when you think about it.

Lecsucks - 10/31/2008 4:00:54 PM

-1 Boost

It does make sense. Yeah, it sucks that people lose jobs etc... but if you knew a little about bond and credit markets you would realize that Chrysler failing is nowhere near as bad as Lehman failing.

mini22 - 10/31/2008 5:47:10 PM

+2 Boost

But it has to be a multipronged bailout. Sure Lehman Brothers failing is major of course.The government is finally starting to do domthing about the credit markets.But the 100,000 people that suddenly lose their jobs affects the tax base in states where the auto industry was quite large. Michigan,Ohio,NY ETC. There has to be some plan for those job losses.We should ultimately thank Daimler/Benz for Chryslers predicament and the management at Chrysler.They made the decision to produce the Sebring and Avenger and Calibur etc. This cars are and continue to be a POS.It's no wonder they haven't sold. The only sad thing is the 300,Charger,and Challenger will die as well.In a way I wish Renault would buy Jeep and those platforms and give the rest to GM.

EL34 - 10/31/2008 6:37:51 PM

0 Boost

Chrysler can go to hell.

Buy a Toyota Camry or Honda Accord not built by the UAW.

philiboy - 11/3/2008 8:34:50 PM

+1 Boost

To All < I just lost my job at GM plant closure. It not Bush's fault the sole blame goes to GM and their lack of foresight and the greed to ride a cash cow to the ground . Our goverment nor president caused GM too forego everything and kiss shareholdes butt. Look at big picture that's my taxes too. I'm not willing to bail out a company that can't see past dollar signs . So I might eat dog food so be it , I don[t want them too have my money. Philiboy