GM is Getting $5 Billion in Federal Aid
The Detroit News recently acquired a 250-page government report that was leaked from the White House on Friday, outlining some planes for the auto industry. According to the report, GM is going to be getting $5 Billion dollars in short-term aid. The report also stated that Chrysler would be relieving $500 Million dollars as well. Naturally the White House has denied the report, however the Detroit News insists that the report is legit, citing a White House official as the source.
The report also stated some other interesting things involving the auto industry. Apparently the Treasury Department has spent $24.8 billion of its estimated $25 billion it would spend on the auto industry. That money included $1.5 billion going to ChryslerFinancial, $4 billion to Chrysler, $6 billion towards GMAC, and $13.4 billion for GM. The Obama administration also plans to set aside $1.25 billion for customers purchasing vehicles that include warranties, in the event that GM or Chrysler goes under.
This entire bailout is pretty controversial, and many people are divided on what the right path is for the United States. Here in New Jersey, many dealers are uncertain of the future. Cincinnati Ford F-150s have recently seen a slight increase in sales, while Ohio Ford dealers have seen a decrease. Cincinnati Chevy dealers are reporting the same kind of trends, and fear of uncertainty. One thing is for sure, it is going to be an interesting future for the auto industry.
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