Auto Industry Asks Government Another $14 Billion
US automaker giants Chrysler and General Motors seek another bailout plan worth $14 billion from the federal government saying that it needed more financial assistance apart from the billion-dollar stimulus package the two carmakers received last year.
Earlier, automakers laid off thousands of worker in an effort to cut costs amidst recession.
Detroit’s car giants Chrysler and General Motors seek another $14 billion as part of the bailout package which have been estimated to reach $38 billion.
According to the two firms, bailout package is the most effective way to address the problem because the cost of bankruptcy will be higher than the cash injection it was asking to the government. The carmakers also said that saving the auto industry would also mean saving thousands of workers from massive job losses.
Earlier, the government created the Presidential Task Force on Autos to overview on how the companies are using the financial assistance the government provided last year. Meanwhile, one official from the task force said that they are reviewing the petition of Chrysler and General Motors, adding that the decision to give another stimulus package will be disclosed on March 31.
Few months ago, Chrysler received $4 billion loans but company’s official said they need additional $5 billion this year. On the other hand, General Motors was granted with $13.4 billion. In return to the bailout packages, the two companies promised to the government it will restructure its operation.
While the two carmakers have already appealed to the government for support, Ford has not yet asked for any financial assistance.
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