There has been a lot of talk in the news about the possibility of General Motors receiving financial help to the tune of $10 million for its proposed merger with Chrysler. Weekend saw The New York Times and Reuters reporting that a request by General Motors for $10 billion was turned down by the treasury as quoted by those who are closely in touch with the discussions.
However, the idea of GM getting a help of $10 billion to complete its Chrysler acquisition approved by the White House seems to have never been considered. Senator Carl Levin and Rep. John Dingell’s close sources said a week ago that there were no plans of assistance for the merger in the White House, in fact in most of the Congress.
When asked about this at a campaign stop, Levin said he was not routing for any financial assistance for the proposed merger between GM and Chrysler. Assisting automakers who have invested heavily in tech investments since early this year obtain loans amounting to at least $25 billion to enable them to produce vehicles which are fuel efficient is what Dingell and Levin are actually pushing for. They are also trying to get the discount window of the Federal Reserve to lend like a bank to Chrysler Credit, GMAC and Ford Credit to enable them to pass on this credit to benefit more borrowers.
If these measures end up assisting GM in their merger, it’s a different matter Levin went on to say. Levin said the idea of covering investments which are retro-active by suppliers and automakers by applying for credit is something he is rooting for and is definitely in the pipeline.
