Citing people close to discussions about the request, the newspaper said Sunday that Treasury officials told GM Friday the Bush administration instead would accelerate a $25 billion loan program approved in September by Congress, intended to promote production of fuel-efficient vehicles.
GM and Cerberus Capital Management LP, the owner of Chrysler, have asked the government for a $10 billion loan that includes an equity swap. The deal would have the government take ownership of $3 billion of preferred stock in the company formed by a merger of GM and Chrysler, CNBC reported last week.
Cerberus has halted talks on a possible partial acquisition by Renault-Nissan, The Detroit News reported Saturday. Sources told the newspaper Cerberus prefers GM as a partner.
Treasury officials were reluctant to expand the $700 billion financial rescue program approved by Congress to cover industry or be involved in a GM-Chrysler merger, the Times said Sunday.
GM and Chrysler are still in talks on a possible merger, the report said.