Add another $13.4bn to the ever-increasing tally of bailout cash, and Detroit’s Big 2 to the list of companies ‘too (insert adjective here) to fail’.
The US government will provide $13.4bn in emergency loans to prevent the collapse of GM and Chrysler, and will make another $4bn available in February – contingent on the carmakers providing compelling evidence they can return to profitability.
The carmakers must also cut their debt by two-thirds via equity exchange, making half of company contributions to retiree health care trusts in stock, and making wages competitive with foreign manufacturers by December 2009, according to Reuters.
(Because, you know, making money is only something you need to do only when you’re forced to.)
U.S. automakers to get $17.4 bn in government aid – Reuters