Big 3 React To Auto Loan Deal

Southfield (WWJ)  -- After weeks of stalled deals and rumors of industry collapse, the White House finally stepped in to provide struggling automakers $17.4 billion in financial relief.

President George W. Bush announced Friday a plan to give troubled automakers short-term loans to help them avoid failure and provide the opportunity to restructure for the future.

Chrysler LLC Chairman and CEO Bob Nardelli said on behalf of the men and women of Chrysler and its extended enterprise, that he would like to thank the Administration and Treasury for their confidence in the Company.

”A letter of intent was signed which outlines the specific requirements that must be achieved,” said Nardelli. “These requirements will require consideration from all constituents, requiring commitment first in principal, leading to implementation this coming year. Chrysler is committed to meeting these requirements."

Nardelli said the Company would remain focused on its challenge and this initial injection of working capital would help bridge the liquidity crisis the industry is facing and assist in helping return Chrysler to profitability.

Ford Motor Company said Friday that it welcomes action by the Administration to provide emergency funding for General Motors Corp. and Chrysler LLC.  "As we told Congress, Ford is in a different position.  We do not face a near-term liquidity issue, and we are not seeking short-term financial assistance from the government," Ford President and CEO Alan Mulally said.

"But all of us at Ford appreciate the prudent step the Administration has taken to address the near-term liquidity issues of GM and Chrysler.  The U.S. auto industry is highly interdependent, and a failure of one of our competitors would have a ripple effect that could jeopardize millions of jobs and further damage the already weakened U.S. economy," he said. Click here to read the Ford's complete statement.    

At a news conference Friday, General Motors CEO Rick Wagoner said the automaker has significant work ahead after receiving a government bailout, but he is confident GM will work with stakeholders to make the company viable.

He said there are big steps to take, but they are not impossible as the company tries to prove to the government it is viable by March 31. "Today our mission is to lead an economic recovery in America," Wagoner said.
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Wagoner says the company will reinvent itself and lead an economic recovery in America. "In many ways, our restructuring plan accelerates and expands the transformation that we've been driving in North America for the past several years," he said.

"But it's really a blueprint for a new General Motors -- one for our second 100 years," he said.