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Bailout Rape of Taxpayer Accelerates
Rattner shilling for the Detroit Duds GM & Chrysler
GM, Chrysler May Need ‘Considerably’ More Aid, Rattner Says http://tinyurl.com/cv5hcd March 20 (Bloomberg) -- General Motors Corp. and Chrysler LLC may need “considerably” more government aid than their request for as much as $21.6 billion, said Steven Rattner, the U.S. Treasury’s chief auto adviser. “It could be considerably higher, I won’t deny that,” Rattner said, when asked whether U.S. aid sought could rise to $30 billion or $40 billion. Rattner spoke in an interview on Bloomberg Television’s “Political Capital with Al Hunt,” scheduled to air today. Rattner and President Barack Obama’s auto task force are assessing proposals from GM and Chrysler and deciding whether to recommend additional aid or tip the car companies into bankruptcy. Rattner said the task force will give its “sense of direction” before March 31. Chrysler and GM have received $17.4 billion since December and requested more last month. “What they’ve asked for depends on them achieving plans that are somewhat ambitious,” Rattner said. “Like all management teams they tend to take a reasonably, slightly perhaps, optimistic view of their business. So it could be more, I can’t rule that out.” Rattner said he may set a deadline for parties including the United Auto Workers and GM bondholders to reach a deal on concessions. “Part of why there’s a lack of appearance of movement is nobody wants to go first,” Rattner said. “You say here’s the deadline, everybody has to get there by this date or we’re going to do something else.” ‘Constructive Way’ GM’s bondholders “are looking to the government to help them solve their problem,” Rattner said. “The government cannot solve everybody’s problems, and we need for the bondholders to become part of this in a constructive way.” Chrysler’s proposal to give Italian carmaker Fiat SpA a 35 percent stake is “a worthy idea to consider,” Rattner said. Chrysler’s numbers show the company “just kind of barely making it” as a stand-alone entity and managing to “just kind of inch along.” “There’s no real uptick, no real sense that the company would generate meaningful amounts of cash flow on a stand-alone basis,” Rattner said of Chrysler. “We have not made a determination on whether they could exist on a stand-alone basis, but we do find their idea of partnership with Fiat a worthy idea to consider.” Rattner said any decision about GM and Chrysler management would be tied to the ultimate configuration of the companies “and I’m not in a position to comment on that today.” GM Chief Executive Officer Rick Wagoner and Chrysler’s Robert Nardelli have been “exceptionally cooperative,” “thoughtful,” and “energetic,” Rattner said. “They’re good guys really trying hard to run those companies,” Rattner said. “I have nothing bad to say about them.” -- Civis Romanus Sum |
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