The Bush Administration approved a $17.4 billion bailout package for General Motors and Chrysler last month, but that money has been slow to reach the automakers’ bank accounts. Both automakers were slated to receive a portion of the funds on December 29th, but further negotiations delayed that plan.
GM confirmed it received its $4 billion allotment on December 31st, but Chrysler has yet to receive its portion of the government bailout. “We’re working expeditiously with Chrysler to finalize that transaction, and we remain committed to closing it on a timeline that will meet near-term funding needs,” Treasury Department spokewoman Brookly McLaughlin told Automotive News.
Neither Chrysler or the Treasury Department have revealed what details are preventing the transfer of funds, but with Chrysler on the brink of bankruptcy, the cash injection is expected in the coming days.
The delay of funds marks the second time Chrysler has been in the headlines this week for its controversial bailout plan. The Michigan automaker drew criticism for a ‘thank you’ ad it took out shortly after the Bush Administration announced the emergency loans. Many felt that the money used for the ads were a waste as some full-page advertisements can cost well over $200,000.
