It seemed like it would take forever but GM has finally received its first 4 billion US dollars in bailout funds from the US government. GM had said it needed 4 billion by the end of the year in order to avoid a bankruptcy.
GM will be getting a total of 9.4 billion in emergency loans from the US government between now and February.
Chrysler is still waiting to receive its 4 billion dollars but is slated to get that soon.
As a condition of the loans, both companies are now compelled to submit detailed and "realistic" plans for restructuring and a return to profitability by March 31st in order to be eligible to receive more low-interest loans from the US government. GM and Chrysler claim they will need more money, beyond the current bailout package, in order to make it through 2009.
Ford has declined any emergency loans, although it did previously ask the Congress for a 9 billion US dollar line of credit that it may or may not have needed to tap into depending on how poor car sales turn out to be in 2009. But Ford is not currently slated to receive any funds.
The US car market is expected to contract considerably in 2009. But no one is really sure how much sales will fall. Estimates range from between 10 and 13 million units, down from highs of over 16 million units during the middle of the decade.
