General Motors and Chrysler will get $US13.4 billion ($20 billion) in emergency government loans in exchange for substantially restructuring their businesses, President George Bush says.

Another $US4 billion will be available to GM in February provided Congress releases the second half of the $US700 billion Troubled Asset Relief Program fund originally set up to bail out financial institutions.

The car makers have until March 31 to meet the conditions of the loans, including demonstrating they have a plan to become profitable, or be forced to repay.

Winning the assistance is a reprieve for GM, the biggest US automaker, and No. 3 Chrysler after they said they would run out of operating funds as soon as this month.

Bush is stepping in after Senate Republicans refusal last week to take up a House- approved rescue raised the prospect that the companies would fail, costing millions of jobs.

http://business.smh.com.au/business/world-business/bush-unveils-us-auto-rescue-plan-20081220-72i6.html?page=-1

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