GM to receive $4 billion in aid
General Motors is set to receive an additional $4 billion in aid from the US government as planned, ahead of the deadline to submit a new survival plan amid initial reports the company may have had to file for Chapter 11 bankruptcy.
The company is seeking concessions from the United Auto Workers union and creditors under the terms of its $13.4 billion federal bailout, and is required to submit a restructuring plan to US officials to show how it can cut costs and pay back the loans.
To date, GM has received $9.4 billion in federal aid which has allowed the company to stay in operation since the start of the year and is expected to seek further assistance after the deadline has passed.
A White House aide has said additional funding for GM’s smaller rival Chrysler LLC would be treated as a new request and dealt with separately.
Chrysler, controlled by Cerberus Capital Management, has been granted $4 billion in federal and is seeking an additional $3 billion.
This report follows news that President Barack Obama has decided against naming a "car czar" with sweeping powers, instead deciding to launch a government task force for restructuring the U.S. auto industry.
The President will appoint Treasury Secretary Timothy Geithner as his "designee" for overseeing auto bailout loans and as co-head of the new high-level panel together with White House economic adviser Lawrence Summers.
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