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White House Gives Automakers $17.4B Bailout

By Clay Dillow,  Newser Staff

Posted Dec 19, 2008 8:32 AM CST

(Newser) – President Bush rolled out a $17.4 billion emergency loan package for US automakers today, promising $13.4 billion in immediate short-term loans from the remaining TARP funds and an additional $4 billion available in February, MSNBC reports. But the clock is ticking, as the companies must show they are financially viable by the end of March, or they will be forced to repay the loans. 

Of the total, $9.4 billion will go to GM and $4 billion to Chrysler; Ford has said it doesn't need help. The terms of the deal are similar to those in the Detroit bailout that failed in Congress, but the provisions for demonstrating viability are looser, the Wall Street Journal reports. Yesterday the White House made noises about considering structured bankruptcies for the Big Three, but today Bush said that with the economy in crisis, another blow to market confidence or further job losses would be too damaging to the nation.

A lot employee looks over Dodge Ram trucks parked in a holding lot in Warren, Mich., on Thursday, Dec. 18, 2008. Chrysler is closing its 30 North American manufacturing plants until at least Jan. 19 due to slumping sales, Ford Motor Co. will shut down 10 North American assembly plants...
A lot employee looks over Dodge Ram trucks parked in a holding lot in Warren, Mich., on Thursday, Dec. 18, 2008. Chrysler is closing its 30 North American manufacturing plants until at least Jan. 19 due...   (AP Photo/Carlos Osorio)
Dodge Ram trucks are seen in a holding lot in Warren, Mich., on Thursday, Dec. 18, 2008.
Dodge Ram trucks are seen in a holding lot in Warren, Mich., on Thursday, Dec. 18, 2008.   (AP Photo/Carlos Osorio)
In this Dec. 4, 2008 file photo, auto executives, from left, General Motors Chief Executive Officer Richard Wagoner, UAW President Ron Gettelfinger,  Ford Chief Executive Officer Alan Mulally, and Chrysler Chief Executive Officer Robert Nardelli testify on Capitol Hill in Washington,  before a Senate Banking Committee hearing on the auto...
In this Dec. 4, 2008 file photo, auto executives, from left, General Motors Chief Executive Officer Richard Wagoner, UAW President Ron Gettelfinger, Ford Chief Executive Officer Alan Mulally, and Chrysler...   (AP Photo/Gerald Herbert, File)
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