US President Barack Obama has announced that the US Federal Government will supply further aid to General Motors and Chrysler.
The news comes hot on the heels of the US government's announcement that it would determine an official deadline for carmakers seeking additional Federal aid.
At the least, President Obama's latest announcment that Treasury purse strings will be loosened further (on top of the USD$17.4 billion already delivered) will buy some breathing space for the embattled automakers.
The Detroit News reports that President Obama informed four members of the US Congress via a conference call that an unspecified amount of ?working capital? would be provided to each manufacturer in the short term.
Meanwhile, an unnamed source has confirmed that current GM CEO Rick Wagoner had submitted his resignation and would be replaced by Chief Operating Officer Fritz Henderson as one of the conditions of the aid package.
The additional aid will allow GM 60 days to complete a restructuring plan and 30 days for Chrysler to finalise details of its joint-venture with Fiat.
No other changes to GM management were discussed and the management board of Chrysler will remain as-is for the time being. Each automaker is to update the US congress on its restructure plans by March 31st and the total amount of tax-payer funded aid to be offered is expected to be announced sometime in the week following.