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White House: GM, Chrysler to get another $7 billion today

Ralph Hanson

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1,213 views Feb 17, 2009

The outcome of the viability plans won't be known until this evening, however

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Detroit's carmakers are due to submit their latest viability plans to the government later today, but already a White House source has leaked that General Motors and Chrysler will both be getting new loan funds. GM's $4 billion loan and Chrysler's $3 billion will bring the total amount handed out so far to $20.4 billion, $3 billion more than the $17.4 billion approved by Former President Bush last year.

GM already received $9.4 billion in two payments since December, with Chrysler receiving just one payment of $4 billion. The new loan funds, leaked to the AP by an anonymous White House official, are still only seen as temporary bandages, not adequate to stanch the bleeding at either company.

For its part, GM is cutting costs even further with $1 billion to be trimmed from its labor budget, reports Automotive News. The labor cuts are expected to be revealed in the viability plan filed at 4 p.m. EST. The savings are thought to come from more plant closings and job cuts.

The plans submitted later today are also expected to detail exactly how GM and Chrysler will repay their loans over the coming years.