GM gets first $4 billion of U.S. loans

The Treasury Department gave General Motors Corp. its first multibillion-dollar loan installment Wednesday and released broad guidelines that would let officials provide funds to any company they deem important to making or financing cars.

The Treasury is giving itself room to provide money from the $700-billion Troubled Asset Relief Program beyond loans already committed to GM, GMAC and Chrysler. Analysts have speculated that suppliers, such as GM’s bankrupt former parts unit Delphi Corp., might be eligible for assistance.

As for GM, Treasury spokeswoman Brookly McLaughlin said the automaker had received $4 billion, the first portion of $9.4 billion in low-cost loans that GM is expected to receive from the government. The money will be available for GM to use almost immediately.

The cash-strapped Detroit company plans to use the money for continuing its operations. GM previously said it might not make it through the end of the year before running out of cash without government aid. GM is obligated to make a large payment to a major supplier in early January; it has declined to offer details on the amount it owes or to which supplier.

Auburn Hills, Mich.-based Chrysler is expecting $4 billion in cash as well, but the Treasury has yet to announce the closing of the first round of loan money. “We’re working expeditiously with Chrysler to finalize that transaction and we remain committed to closing it on a timeline that will meet near-term funding needs,” McLaughlin said.