White House extends autos $17.4B

WASHINGTON, Dec. 19 (UPI) -- U.S. President George Bush announced $17.4 billion in loans for U.S. automakers, saying he needed to protect citizens from further economic difficulties.

The aid for Detroit's Big Three was offered, in part, to "shield the American people from a harsh economic blow at a vulnerable time," Bush said, the Detroit Free Press reported.

The deal allows $13.4 billion to be made available almost immediately from the government's $700 bailout bill intended for financial firms. Another $4 billion would be made available later, presumably in February, The Wall Street Journal said.

Bush said taking no action would not be an option.

"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," he said.

The agreement calls for automakers to become financially "viable" by March 31, the Journal said.

Chrysler LLC Chief Executive Officer Bob Nardelli said terms connected to the loans "will require consideration from all constituents."

"Chrysler is committed to meeting these requirements," he said.