$6bn More Auto Aid For U.S Auto Industry

It seems it is time for General Motors to rejoice. The US government has made the announcement for expanding the auto bailout of the auto industry. The government will provide an additional auto aid of $6bn. This auto aid will definitely make a huge difference to GMAC. $5bn out of this auto aid would be given to GMAC that is the finance arm of General motors. The remaining $1bn would be given to GM which would use the money to buy shares in GMAC. While funding the auto aid of $6bn, the government has also warned the automakers to use the money judiciously. It has also asked the companies to put forth restructuring plans as soon as possible. If not so, the automakers might have to face bankruptcy by the month of March.

These steps are being taken to bailout the auto industry from global economic recession and automatically suffering from heavy losses. In the first week of December, the US government had pumped in $17.4bn for the survival of U.S auto companies. The government had clearly stated that its can't afford to let the Big Three automakers die. $13.4bn of that auto aid was for the biggest automaker of the world General Motors, that was on verge of bankruptcy prior to bail out.