General Motors

Auto Industry Developments

On December 19, Treasury extended $13.4 billion in short term financing from TARP funds to General Motors Corporation and Chrysler LLC, with an additional $4 billion in loans to follow in February 2009 (contingent upon the release by Congress of the remaining TARP funds), in exchange for warrants for non-voting stock, executive compensation limits, dividend restrictions and other commitments. If the automobile manufacturers are not able to achieve financial viability,evidenced by positive net worth, by March 31, 2009, the loans will be called. Term Sheets. Treasury Press Release.