Reply #10: as I understand it. [View All]

[Jack Bone]

$25 bil of the $50 bil will go into a VEBA trust ran by the UAW to alleviate the Big 3 from the massive expense of Retiree's health care. This VEBA, the Big 3 have been paying into since contract talks ended last year. The final installment is due at the end of the 4th qtr, to the tune of $25 bil. The Big 3, due to this floundering economy don't have the money to pay it off and they need the loan.

With retiree health care behind them...remember the talking point that GM added 2k to each vehicle sold just to cover retiree health care?..they will be on better ground, financially.

Basically this all comes down to the economy being a mess. The lack of available credit..personally affecting sales and corporate wide making bank loans difficult.