Treasury Lays Out Details for Auto Aid

The Treasury Department says it will decide on a case-by-case basis whether other companies connected to the struggling automotive industry should be provided emergency aidfrom the government's $700 billion bailout pot.

By: Associated Press | WSAV-TV
Published: December 31, 2008

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WASHINGTON (AP) - The Treasury Department says it will decide on a case-by-case basis whether other companies connected to the struggling automotive industry should be provided emergency aid
from the government's $700 billion bailout pot.

President George W. Bush reversed course on Dec. 19 and announced a $17.4 billion rescue package for teetering auto giants, General Motors Corp. and Chrysler LLC, which were burning through cash and bleeding jobs.

The government earlier this week provided $5 billion in aid to GMAC Financial Services, GM's troubled financing arm.

In deciding whether to aid others, the department says it will consider "the importance of the institution to production by, or financing of, the American automotive industry," and whether a major disruption of the companies' operations would likely hurt employment and the national economy.