Monday, March 23, 2009

Surprise!! GM/Chrysler Want "Considerably" More

Over the weekend...

General Motors Corp. and Chrysler LLC may need "considerably" more than the $21.6 billion in aid they requested, which was based on optimistic recovery plans, said Steven Rattner, the Treasury’s chief auto adviser

The companies have received $17.4 billion since December and asked for the additional $21.6 billion in aid last month, an amount that depends on achieving turnaround plans that are "somewhat ambitious," Rattner said.

“It could be considerably higher, I won’t deny that,” Rattner said, when asked whether U.S. aid sought could rise. "Like all management teams they tend to take a reasonably, slightly perhaps, optimistic, view of their business. So it could be more, I can’t rule that out."

It's entirely possible that Obama will pull the plug on GM/Chrysler and force Chapter XI. His political capital is running very low, indeed, at this time.

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