Join Date: Apr 2004
Location: the original let me google that for ya guy
Here is something from CNNMoney.com
Conditions similar to auto bailout bill
The terms of the loan are similar to those set in the auto bailout legislation that was passed by the House last week but was shot down in the Senate. Executives at GM and Chrysler must agree to limits on their compensation and eliminate perks such as corporate jets. The companies also must issue warrants, which convert into non-voting stock, to the government.
The loans do not include the concept of a so-called "car czar" to oversee the automakers, although it does say that a designee of the President would determine if the automakers are making the changes necessary for them to be considered viable.
The Bush administration official said that Treasury Secretary Henry Paulson would fill that role in the remaining days of the current administration.
The loans call for the automakers to prove they are viable by March 31, even though they are not expected to be profitable by that date.
The government wants the automakers reduce their debt load by two-thirds via a debt for equity exchange with current bondholders and get the United Auto Workers union to agree to wages and work rules competitive with non-union plants operated by Asian auto manufacturers by the end of next year.
In addition, the government is calling for GM and Chrysler to use their stock to pay for half the funds needed to cover future retiree health care expenses, which will be paid by union-controlled trust funds, rather than the automakers themselves, starting in 2010.
But there is flexibility for the companies and the incoming Obama administration to allow the loans to continue even if these targets are not reached, as long as GM and Chrysler can provide an explanation as to why they are viable without hitting those targets.
Republican senators demanded hard targets for labor union concessions and cited the UAW's resistance to agree to them as the reason the bill died last week.
But a Bush administration spokesman said there should be flexibility in the negotiations that will take place in the next three months between the automakers and the union.
"We do not feel it is appropriate for government to dictate the specific terms of negotiations between management and labor or management and dealers or management and creditors," the official said.