Chrysler Wants $3 Billion In Immediate Aid

January 12, 2009

Chrysler's finance arm is in "advanced talks" with the U.S. Treasury in hopes of obtaining an additional $3 billion beyond Federal assistance already granted. They hope a deal will be struck by this Friday.

Last month, Chrysler received $4 billion from the TARP fund (Troubled Asset Relief Program), though the company had asked for $7 billion to stay afloat through March 31. Chrysler Vice Chairman and President Jim Press said, as quoted in Detroit News, "we are making good progress to qualify for a total of $7 billion, which puts us in a really good financial position."

GM does not have plans to ask for more beyond the $13.4 billion it was granted from TARP. And Ford said it will not follow earlier plans to pursue a $9 billion line of credit, as they believe that the government will help them out if auto sales weaken further in '09.--Colin Mathews

[source: Detroit News]

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