Gettelfinger: Chrysler, GM may not need additional loans

United Auto Workers union president Ron Gettelfinger says Chrysler and GM may not need additional federal funds beyond the $17.4 billion already approved.

In an exclusive interview at the UAW’s Solidarity House, the union leader told Automotive News that sales in 2009 will determine whether more money will be needed to keep the automakers solvent. Gettelfinger is hopeful the market will stay above 12 million units which is in line with projections from Ford and General Motors but about a million sales more than Chrysler is forecasting.

The funding that GMAC will receive as a bank holding company, combined with the loan package for Chrysler and GM should be enough to avoid any liquidity problems as much of the money can be used to finance dealer  and consumer sales. The freezing of the credit market was one of the major contributors to the cash crisis that forced the Detroit automakers to look to Washington for financial assistance.