White House to Release GM An Additional $4-Billion To Stay Afloat

By Jennifer Parker

Feb 16, 2009 7:00pm

Obama administration sources tell me that tomorrow they will release $4-billion to General Motors Corp.

The White House move comes one day before car giants General Motors Corp. and Chrysler LLC are scheduled to submit cost-cutting plans to the administration in exchange for some $17.4-billion dollars the government lent them in December. 

The Obama administration was to have six weeks to rule on the future of the U.S. auto industry, with a March 31 deadline for deciding whether GM can keep the $13.4 billion and Chrysler the $4 billion given to them.

But White House officials tell me that no one wants GM to go under while they assess this long-term restructuring plan.

They believe this $4-billion is essential to keeping GM afloat until their decision in March.

–George Stephanopoulos

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