GM, Chrysler may need more aid than sought

General Motors Corp and Chrysler LLC may need “considerably” more than the $21.6 billion in aid they requested, which was based on optimistic recovery plans, said Steven Rattner, the Treasury’s chief auto adviser.

President Barack Obama’s auto task force is assessing proposals from GM and Chrysler to decide whether to recommend US assistance or tip the carmakers into bankruptcy. Rattner made the comments yesterday on Bloomberg Television’s “Political Capital with Al Hunt,” airing this weekend.

The task force would give its “sense of direction” by March 31, Rattner said. The companies have received $17.4 billion since December and asked for the additional $21.6 billion in aid last month, an amount that depends on achieving turnaround plans that were “somewhat ambitious,” Rattner said. “It could be considerably higher, I won’t deny that,” Rattner said, when asked whether US aid sought could rise. “Like all management teams, they tend to take a reasonably, slightly perhaps, optimistic, view of their business. So it could be more, I can’t rule that out.”

Greg Martin, a GM spokesman, said yesterday its restructuring plan had “a conservative outlook.” The company will continue working with the task force “and we’ll keep them informed of our liquidity needs,” Martin said in an e-mail.

Chrysler said in a statement that its plan is “realistic” and “conservative.”

“With the remaining $5 billion loan request, Chrysler is viable,” the company said.

Ford Motor Co, the second-largest US automaker, hasn’t requested assistance. GM, the biggest, has received $13.4 billion in aid so far and has requested as much as $16.6 billion more. Chrysler got $4 billion and wants $5 billion more. To keep the aid, the automakers must reach cost-cutting agreements.