Since Congress was unable to come to an agreement about a bailout for the U.S. automakers, President George W. Bush has approved $17.4 billion in emergency loans to the U.S. automakers. The loans are needed to help save hundreds of thousands of jobs and prevent GM and Chrysler from going bankrupt.
GM and Chrysler are expected to dip into the money immediately, while Ford claims that its liquidity is adequate for now and does not need a bailout loan.
"If we were to allow the free market to take its course now, it would almost certainly lead to disorderly bankruptcy and liquidation for the automakers," Bush said.
President elect Barack Obama also supports the loans to the automakers.
Although the loans are going to help GM and Chrysler survive, the loans will only get them through until March of next year.