November 27, 2014
Some details of the Bush administration's $17.4 billion rescue plan for the U.S. auto industry:
- Auto makers will get $13.4 billion in short-term financing from the Troubled Asset Relief Program, with an additional $4 billion to be made available in February, contingent on drawing down the second portion of the TARP funds.
- Auto companies must use the money to become financially viable.
- If a company has not become financially viable by March 31, 2009, its loan will be called and all funds returned to Treasury.
- Auto companies must accept limits on executive compensation and eliminate perks such as corporate jets.
- Debts owed to the government would outrank other debts.
- Auto companies must allow the government to examine their books and records.
- The government has the power to block transactions of $100 million or more.
- Auto companies must comply with applicable federal fuel efficiency and emissions requirements.
(Copyright 2008 by The Associated Press. All Rights Reserved.)