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US carmakers steer closer to bailout deal
Bill Condie16 Dec 2008
Hopes are growing that the Bush administration could act as early as today to approve a Detroit bailout from its bank rescue fund.
Any deal is expected to have the tough conditions approved by the House of Representatives last week.
General Motors' financing arm GMAC is edging towards approval as a bank, which could make it eligible for funding under the scheme. But it still needs to woo more bondholders than have agreed to an exchange offer, or find another way of raising the required capital.
The Treasury Department and executives from General Motors, Chrysler and Ford are still reviewing financial and other information but no decision has been made, a spokesman said.
GM and Chrysler, which is owned by Cerberus Capital Management, have said they need immediate cash injections to avoid collapse and millions of job losses at allied businesses.
Ford is seeking a government line of credit to be used if its financial conditions deteriorate more than expected in 2009.
