GM welcomes news of bridge loan

DETROIT, Dec. 19 (UPI) -- Emergency, short-term federal financing will help General Motors Corp. finish its restructuring plan for long-term viability, the U.S. automaker said Friday.

President George Bush said he was authorizing about $13.4 billion in short-term financing for GM and Chrysler LLC so they can reorganize their operations to be more viable and competitive in the future. The plan also would make available another $4 billion in February if needed. If they cannot show improvements in a three-month window, the companies must repay the loans and possibly seek Chapter 11 bankruptcy protection.

Bush's action "helps to preserve many jobs, and supports the continued operation of GM and the many suppliers, dealers and small businesses across the country that depend on us," the company said in a statement posted on its Web site.

The loan would permit the company to complete its restructuring plan "for long-term, sustainable success," the statement said.

"We know we have much work in front of us to accomplish our plan," the statement said. "It is our intention to continue to be transparent as we execute our plan, and we will provide regular updates on our progress. We again thank the administration for this important support of our industry at this challenging time, and we look forward to proving what American ingenuity can achieve."