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GM chief leads hunt for funds
28.10.08
General Motors chief executive Rick Wagoner is said to be personally taking the begging bowl to Washington in a bid for Federal funds to seal a merger with rival Chrysler.
Insiders say Wagoner is leading a push for a $10 billion (£6.28 billion) rescue package. GM is among carmakers eligible for $25 billion in low-interest borrowing to re-tool plants, but that money is likely to have strings attached.
The car firms' finance arms may get funding from the $700 billion bailout fund to buy bad home loans and other troubled assets. GM, Chrysler and its owner Cerberus have made no official comment on their talks but insiders say a deal will only be possible with government help.
While the deal would give GM access to cash at Chrysler, it would also be costly to integrate operations.
The Wall Street Journal says the Energy Department is working to release $5 billion to GM through the loan programme. The White House would not comment.
