WASHINGTON (RushPRnews)12/19/08-U.S. President George Bush is offering billions of dollars in loans to help battered U.S. automakers survive long enough to restructure their businesses and become more competitive. Washington will offer $13.4 billion in government loans soon, with another $4 billion in February.
In a nationally-televised speech, Mr. Bush said every segment of the auto industry — workers, management, lenders, and others — will have to make concessions to make the plan work.
He warned the companies they will have until the end of March to come up with plans to make their businesses viable in the future or face bankruptcy.
G.M. and Chrysler are reeling from the global recession, which has led to tightening credit, falling consumer demand, and the worst sales in decades. The situation is forcing Chrysler to close all 30 of its plants for at least a month, beginning Friday.
Some information for this report was provided by AP and Bloomberg.