In what should come as no surprise to anyone but the auto executives, GM, Chrysler May Need ‘Considerably’ More Aid.



General Motors Corp. and Chrysler LLC may need “considerably” more government aid than their request for as much as $21.6 billion, said Steven Rattner, the U.S. Treasury’s chief auto adviser.



“It could be considerably higher, I won’t deny that,” Rattner said, when asked whether U.S. aid sought could rise to $30 billion or $40 billion.

My Comment

Rattner and President Barack Obama’s auto task force are assessing proposals from GM and Chrysler and deciding whether to recommend additional aid or tip the car companies into bankruptcy. Rattner said the task force will give its “sense of direction” before March 31. Chrysler and GM have received $17.4 billion since December and requested more last month.

My Comment

GM’s bondholders “are looking to the government to help them solve their problem,” Rattner said. “The government cannot solve everybody’s problems, and we need for the bondholders to become part of this in a constructive way.”



“There’s no real uptick, no real sense that the company would generate meaningful amounts of cash flow on a stand-alone basis,” Rattner said of Chrysler. “We have not made a determination on whether they could exist on a stand-alone basis, but we do find their idea of partnership with Fiat a worthy idea to consider.”

My Comment

Rattner said any decision about GM and Chrysler management would be tied to the ultimate configuration of the companies “and I’m not in a position to comment on that today.”



My Comment

GM Chief Executive Officer Rick Wagoner and Chrysler’s Robert Nardelli have been “exceptionally cooperative,” “thoughtful,” and “energetic,” Rattner said.



“They’re good guys really trying hard to run those companies,” Rattner said. “I have nothing bad to say about them.”

My Comment

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