Just ahead of the Obama Administration’s press conference today, some of the most important details are already out.
General Motors is to be given 60 more days to complete its restructuring plan, while Chrysler is being given just 30 days to finalize a partnership with Fiat.
This news comes as both fumbling U.S. automakers are set to fail to meet the March 31st restructuring deadline that the Bush administration gave as a qualification for the initial bailout funds.
Both automakers will be given additional funds to ride out the recession until the given deadlines. Chrysler requires $2 billion by tomorrow in order to avoid cash flow issues, while GM is looking at an additional $2 billion to keep itself afloat through April.
Both deadlines comes after the Obama administration’s Auto Task Force determined that the current restructuring efforts by both General Motors and Chrysler would not make either company viable even if the economy improved.
If the two American car manufacturers cannot meet the deadlines laid out by the Obama administration, the cash flow will be halted and the companies will be forced into bankruptcy.
[Source: Automotive News]