Chrysler Wants $1.5B More for Auto Loans

Some Republicans were ready to let GM, Chrysler die: Jonathan Cohn

(NEWSER) - Barack Obama reportedly plans to make the auto bailout a key part of his reelection campaign, and Jonathan Cohn of the New Republic thinks that’s a great idea. Chrysler and GM are in much better shape, he argues—GM in particular is “reporting big profits, it is winning design awards, and, most important of all, it is selling lots of cars.” More importantly, employment is creeping higher in states like Michigan with a heavy auto industry presence. More»

(NEWSER) - The Obama administration’s favored plan to rescue GM and Chysler is a managed bankruptcy that would relieve them of their biggest liabilities by splitting the carmakers into “good” and “bad” components, the Wall Street Journal reports. The “good” GM would comprise profitable brands like Chevy and Cadillac as a standalone concern. The “good” Chrysler would become a subsidiary of Fiat, if that deal is finalized. More»

(NEWSER) - GM and Chrysler got tough love from Barack Obama today, with the president declaring that they haven't made substantial enough changes to justify another federal bailout, and decrying the “failure of leadership” to come up with viable restructuring plans. Obama said the companies would have to regroup radically to survive on their own, not as “wards of the state.” GM will get 60 days worth of federal financing, and Chrysler 30; if they don't have a credible plan in place by then, the government may make them restructure through bankruptcy. More»

(NEWSER) - Chrysler and GM could end up needing a “considerably higher” amount than the $21.6 billion so far requested, Bloomberg reports. Steven Rattner, who heads President Obama’s auto task force, said it's possible the request could go as high as $40 billion. He also said that Chrysler’s mention of a merger with Fiat is a “worthy idea” because the company is “just kind of barely making it” alone. More»

(NEWSER) - The restructuring plans unveiled by GM and Chrysler make one thing clear: the cost of bailing out the companies has jumped $14 billion to a total of $39 billion. But as the White House begins to pick through the plans, the companies say it would be far more expensive if they go bankrupt, the Wall Street Journal reports. GM says it would require $100 billion in financing for a "risky" bankruptcy, while Chrysler says it would need an additional $24 billion. Both tried to play down even the possibility of such a move. More»