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 Tranche Warfare - White House Press Briefing by Deputy Chief of Staff for Policy Joel Kaplan 12/19/08 — Friday, December 19, 2008 —  Q Can you give us a breakdown of who's getting what out of the first $13.4 billion? And is there a distinction of how much you're making available in, say, loan guarantees, which is something Ford was more interested in, versus outright cash out the door? MR. KAPLAN: Yes. The loans that are being announced today are for the GM auto manufacturer and Chrysler auto manufacturing company. Ford, in Treasury discussions with them, I believe does not believe that it needs a loan today. Out of the total -- I mentioned that the total is $17.4 billion -- $13.4 billion of that is going to be made available to these two companies in December and January, and $4 billion is needed in February by GM. So if I do my math correctly, I think that means that $13.4 billion also happens to be the number, coincidentally, that is going to GM, and $4 billion is the number that is going to Chrysler. Q And how do-- MR. KAPLAN: But it's a little confusing because these numbers just -- literally coincidentally happen to be the same, the total -- the total that -- Q So some of it will be in the $4 billion that is the post -- or second tranche amount? MR. KAPLAN: Right, the February tranche of $4 billion is for GM. So $13.4 billion is being divided by GM and Chrysler in December and January. Q Evenly, like -- MR. KAPLAN: No, not evenly. Q Okay. MR. KAPLAN: I believe that it is $4 billion for Chrysler and the remainder, which would be $9.4 billion in December and January for GM, with the remaining $4 billion in February for GM. I apologize, I know those -- it's a little confusing just because of the coincidence of the numbers. Q And how do you resolve the Cerberus issue, because they are a private company -- it calls for warrants, the loans. How does the administration -- or the loan terms deal with that? MR. KAPLAN: Yes, the specifics of how the Treasury intends to get warrants from Chrysler, which is privately held, I'm going to have to rely on Treasury to give the details on. But these loans are to the auto manufacturing companies of GM and Chrysler. Automobile Industry | Joel Kaplan | Legislation | Press Briefing | Treasury Department | White House Press Corps Labels: Automobile Industry, Joel Kaplan, Legislation, Press Briefing, Treasury Department, White House Press Corps >> Full Story
Posted by White House Press Corps @ 5:23:00 PM
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