Could the Fed be ready to hand over more loan money to GM/Chrysler?
Gm / Chrysler logos (Motor Trend)
According to a story in the Detroit Newsby David Shepardson, GM and Chrysler will be getting additional loans from the Federal government in the near term. The amounts? General Motors will reportedly receive $5 billion and Chrysler LLC around $500 million. These amounts were released in a 250-page government report.
Also included in the report is that the Obama administration plans to set aside $1.25 billion to pay for warranty programs should either automaker go under. In my opinion, this is yet another example that Washington does not know what the heck it is doing when it comes to the auto industry. Sure, I don’t have the exact numbers, but I used to work in a quality department, and I know that GM and Chrysler’s warranty costs per year greatly exceed that number. The government would have to cover the warranty on millions of cars sold within the last 5 years or so that had any warranty left. Maybe the government should have focused on protecting the manufacturing base in this country so that we would have never ended up in this mess…oh well, wishful thinking right? It’s way too early for me to be this worked out…*deep breaths…1…2…3…4…*
Tags: Chrysler, Chrysler LLC, General Motors, GM
