General Motors and Chrysler might need “considerably” more than the $21.6 billion in additional government loans they’ve already requested, Steven Rattner, the U.S. Treasury’s chief auto adviser has said. To date, the automakers have received $17.4 billion.
Mr. Rattner made the comments during the recording of “Political Capital with Al Hunt,” which airs this weekend. “It could be more, I can’t rule that out,” he said of further loans.
He went on to say GM and Chrysler ’s turnaround plans are “somewhat ambitious” and probably “optimistic.” In contrast, the two companies characterize their own plans as “realistic” and “conservative” in outlook.
President Barack Obama is said to be using his automotive task force to help him decide whether to push go ahead with further loans, or force the carmakers into bankruptcy. The panel will give its “sense of direction” by March 31st, he said.
On Thursday, GM CEO Rick Wagoner warned his company could be forced into bankruptcy if negotiations with the UAW and debt-holders fail. GM is aiming to slash its debt by $28.5 billion.
Rattner warned he might set a deadline for the negotiations to end. “Part of why there’s a lack of appearance of movement is nobody wants to go first,” he said. “You say here’s the deadline, everybody has to get there by this date or we’re going to do something else.”
“In the course of what we say over the next 10 days, we will make very clear what the timetable is, by when it has to happen by, and also what we expect from them,” he added.
Rattner went on to say GM boss Rick Wagoner and Chrysler head Bob Nardelli have been “exceptionally cooperative,” “energetic,” and “thoughtful.”
“They’re good guys really trying hard to run those companies. I have nothing bad to say about them.”
