Here's the same info by a different author, not near so dire.
By Sharon Silke Carty, USA TODAY DETROIT — The Treasury Department will announce this week a preliminary plan to help General Motors and Chrysler that sets goals and deadlines that could be more ambitious than the companies themselves have proposed, according to a Capitol Hill staffer briefed on the plan but who wished to remain anonymous because the proposal is not yet public. Treasury's preliminary plan also could include a bridge loan to Chrysler that's less than the $5 billion the automaker wants, the staffer said. Treasury says details still are being finalized. A more structured version of the plan will be detailed in April, when additional loan money could become available to the two troubled companies. The Bush administration in December set a deadline of March 31 for the automakers to prove they would be viable with the help of emergency government loans. But since then, the car market has hit the skids, and both GM and Chrysler have said they need even more money to survive. GM and Chrysler are operating on a combined $17.4 billion in government loans approved by the Bush administration. The two automakers have asked the Obama administration for another $21.6 billion and say they need it soon. FIND MORE STORIES IN: George W. Bush | Barack Obama | Canada | General Motors | Capitol Hill | United States Treasury Department | Chrysler LLC | Ottawa | United Auto Workers | Dodge Charger | Houlihan Lokey The president's auto task force is demanding that the car companies get significant concessions first. GM bondholders are balking at swapping two-thirds of their GM debt for stakes in the company. Bondholders warned the government this weekend that if they can't strike a deal with the automaker, the car company might be forced into bankruptcy. A group representing bondholders says many are not willing to take stock in place of bonds because they don't believe GM will be survive long enough to make the shares valuable. That would result in "dire consequences for the company, the tens of thousands of hard-working Americans that GM employs and the economy as a whole," bondholder advisers from investment firm Houlihan Lokey wrote. And although the United Auto Workers, which represents U.S. hourly workers, has agreed to concessions, the Canadian Auto Workers union hasn't reached an agreement with Chrysler. Chrysler says that if it cannot get nearly $16 an hour in wage and benefit concessions from the CAW, as well as a guarantee of $2.3 billion in loans from Canadian governments and a break on a tax dispute with Ottawa, it might have to pull out of Canada, the Associated Press reported Monday. Canada's the source of Chrysler's U.S.-market minivans and line of big sedans that includes the Chrysler 300 and Dodge Charger. Thanks, Tom Hargrave www.kegkits.com 256-656-1924 -----Original Message----- From: mercedes-boun...@okiebenz.com [mailto:mercedes-boun...@okiebenz.com] On Behalf Of Luther Sent: Monday, March 30, 2009 12:00 AM To: Mercedes Discussion List Subject: [MBZ] Chrysler vs. Gov't " Frustrated administration officials said Chrysler cannot function as an independent company under its current plan. They have given Chrysler a 30-day window to complete a proposed partnership with Italian automaker Fiat SpA, and will offer up to $6 billion to the companies if they can negotiate a deal before time runs out. If a Chrysler-Fiat union cannot be completed, Washington plans to walk away, leave Chrysler destined for a complete sell-off. No other money is available. " http://news.yahoo.com/s/ap/20090330/ap_on_go_pr_wh/obama_autos What's next? -- Luther KB5QHU Alma, Ark '87 300SDL (281,xxx mi) '85 Ford F250 6.9 diesel (x59,xxx mi) BioBeast '82 300CD (183 kmi) '82 300D (74 kmi) getting donor engine-sold '85 300D (280,176) parts car sans engine "The Accordion" _______________________________________ http://www.okiebenz.com For new and used parts go to www.okiebenz.com To search list archives http://www.okiebenz.com/archive/ To Unsubscribe or change delivery options go to: http://okiebenz.com/mailman/listinfo/mercedes_okiebenz.com No virus found in this incoming message. Checked by AVG. Version: 7.5.557 / Virus Database: 270.11.31/2028 - Release Date: 3/28/2009 7:16 AM No virus found in this outgoing message. Checked by AVG. Version: 7.5.557 / Virus Database: 270.11.31/2029 - Release Date: 3/29/2009 4:56 PM _______________________________________ http://www.okiebenz.com For new and used parts go to www.okiebenz.com To search list archives http://www.okiebenz.com/archive/ To Unsubscribe or change delivery options go to: http://okiebenz.com/mailman/listinfo/mercedes_okiebenz.com
