U.S. Agrees to Interim Aid for GM, Chrysler

GM gets $5 billion, Chrysler gets $500 million

The U.S. Treasury will lend a further $5 billion to General Motors and $500 million to Chrysler as the troubled automakers work on their viability plans, officials said on April 21.

A report released by the inspector general for the Treasury's financial bailout program specified the amounts of working capital to be provided under rescue plans for the two companies which are seeking to stave off bankruptcy.

GM would use the money during its 60-day period to revamp its plans for viability.

Chrysler will use its funding as it seeks to seal an alliance with Italian automaker Fiat to prove its ability to weather the crisis in the auto industry.

Copyright Agence France-Presse, 2009

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