Chrysler & GM get 1st Bailout Payment

December 29, 2008 12:00:00 AM PST
Chrysler and General Motors get their first cash payments from the auto bailout, but analysts said they may have a tough time keeping their end of the bargain.The Treasury Department will give them more than $13-billion dollars to keep the companies afloat. The initial loan isn't expected to carry GM past February and experts claim all three of the major car companies will be asking for more money soon.

"Given the depressed state of the auto market General Motors and Chrysler will certainly be back again for more aid. It's just a matter of time," said University of Maryland Economist Peter Morici.

The automakers are also stalled in launching the restructuring the Bush Administration wants. GM has put off negotiations with creditors until January 5th and the United Auto Workers Union doesn't want to go along with the wage and benefit cuts the bailout agreement calls for.

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