Chrysler, Big Three | featured news

General Motors Corp. could get as much as $5 billion more in federal loans, while Chrysler LLC could get $500 million as they race against government-imposed deadlines to restructure, according to a government report filed Tuesday.

Executives at General Motors and Chrysler are speeding to put in place workable plans to restore their dwindling operations. It’s a race they might not win.

The moves come less than an hour after Obama tells the two carmakers to take another stab at redesigning their companies, a requisite for receiving more federal funds.

Less than an hour after President Obama said a major overhaul was needed to save the auto industry, Chrysler announced that it had formed the framework of an alliance with Fiat, while at General Motors Corp., new leaders took charge after the chairman was forced to step down

President Obama is making a formal announcement this hour about his plans for troubled automakers General Motors and Chrysler, which have already been given $17.4 billion to keep them running.

President Barack Obama will announce the next steps to help General Motors Corp and Chrysler LLC on Monday, the White House said, amid signs of progress for GM in talks aimed at slashing its debt and cutting costs in response to slack demand.

The president's chief of staff criticized U.S. car companies Sunday for relying too long and gas guzzlers and not investing enough in alternative energy vehicles.

Automakers tell the Obama administration that they need at least an additional $14 billion in loans in order to survive economic downturn.

Talks between the United Auto Workers and General Motors Corp central to a turnaround plan for the struggling automaker have broken down over the issue of retiree healthcare costs, a person briefed on the talks said on Saturday.

The struggling American auto maker Chrysler, owned by the private equity firm Cerberus Capital Management, signed an agreement with Fiat on Tuesday that would give the Italian car maker a 35% stake in the company.