California Autos Examiner

Friday, March 20, 2009

Rattner: Likes GM, Chrysler Leaders But Thinks They May Be Too Optimistic

The Treasury Department's chief auto adviser was generally impressed with Rick Wagoner and Bob Nardelli, but indicated that estimates by both GM and Chrysler may downplay the amount of cash that will be required. Chrysler has received $4 billion in government loans and wants another $5 billion. GM has received $13.4 billion and is seeking another $16.6 billion in loans and a line of credit. How much more are we talking here? Try as much as $30 billion or $40 billion.

Rattner continued the Obama party line when it comes to a Fiat/Chrysler tie-up, "We have not made a determination on whether they could exist on a stand-alone basis, but we do find their idea of partnership with Fiat a worthy idea to consider."

source: Rattner: GM, Chrysler could need more than $21.6 billion The Detroit News

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