White House: Automakers Could Get Bailout Cash
The White House said today that financing companies owned by Detroit automakers could qualify for assistance under the $700 billion financial bailout package, The Post's Dan Eggen reports.
"It’s possible that some of those financing arms could be a part of the rescue package," said White House press secretary Dana Perino. "That’s one of the reasons Treasury has been in contact with them."
Any help from the rescue plan would come in addition to a $25 billion package of loans for revamping domestic auto factories, which has been approved by Congress, but is unlikely to be disbursed for months.
Perino said the Treasury Department would have to analyze whether the financing companies would qualify for help under the federal rescue program, which is primarily aimed at injecting capital into the banking system.
"We’re trying to work with them as much as we can," Perino said of efforts to help the beleaguered U.S. automakers. "There are some things we may or may not be able to do. It’s still going to take a little while for us to work on it."
GMAC, GM's financing unit -- created to lend money to auto dealers to allow them to buy new cars for resale -- is only partially owned by GM. In 2006, GM sold a 51 percent stake in GMAC to Cerberus Capital, the same private equity firm that bought an 80 percent stake in Chrysler from Daimler in 2007.
-- Frank Ahrens
Posted by: truthhurts | October 27, 2008 3:32 PM | Report abuse
The comments to this entry are closed.