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Chrysler may not get or need more U.S. aid, administration official says

March 18, 2009|Bloomberg News

Chrysler is unlikely to get and may not need $5 billion in additional U.S. aid by March 31 to stave off bankruptcy, an Obama administration official said Tuesday.

Chrysler said last month that it needed the money by the end of this month and had been meeting with the Treasury Department's auto task force to discuss the request. Further talks will be held to assess the company's financial position, said the official, who asked not to be named because the deliberations are private.

General Motors Corp. and Chrysler, after receiving $17.4 billion in assistance since December, asked for as much as $21.6 billion more as auto sales fell to a 27-year low in February.

GM said Thursday that it no longer needed $2 billion this month because of progress on cost cuts.

A Chrysler spokeswoman declined to comment.

The government also may not be able to give auto-parts suppliers the full $18.5 billion in aid requested by their trade associations, the official said. The Original Equipment Suppliers Assn. and the Motor & Equipment Manufacturers Assn. asked for the money Feb. 13.

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