Dec. 13 (Bloomberg) — General Motors Corp. moved closer to a possible government rescue as the Bush administration said it may tap a bank bailout fund for financing and GM’s top executive discussed terms with administration officials.
GM Chief Executive Officer Rick Wagoner spoke by telephone with White House Chief of Staff Joshua Bolten and Treasury Secretary Henry Paulson about a short-term plan to keep the automaker solvent, a person familiar with the talks said.
The General Motors logo is seen outside the GM headquarters in downtown Detroit, Friday, Dec. 12, 2008. GM announced it will temporarily close 20 factories across North America and make sweeping cuts to its vehicle production as it tries to adjust to dramatically weaker automobile demand.(AP Photo/Carlos Osorio)
The talks followed a statement by the White House that it would consider using the Troubled Asset Relief Program to help GM and Chrysler LLC following the Senate’s rejection of an aid package the night before.
“Congress has really punted the ball over to the White House,” John Bogle, founder of the $80.6 billion Vanguard 500 Index Fund, said in a Bloomberg Television interview. “That will give them temporary stopgap aid. I do not think General Motors is going to go out of business.”