As expected, President Obama said today at a press conference that Chrysler would be filing for Chapter 11 bankruptcy protection. You can see the Treasury Department's full rundown on the details of Chrysler's restructuring here.
Here's how it will work. Chrysler will receive up to $8 billion more in loans from the Treasury: $3.3 billion in financing to carry the company through the restructuring process and then $4.7 billion more when it emerges as a new company. Chrysler will be merging with Fiat, and Obama said all the bailout money will have to be repaid before Fiat can take a majority ownership stake in Chrysler. As reported earlier, Canada will be chipping in alongside the U.S. with its own bailout money. In exchange for their aid, the U.S. will get an 8 percent stake in Chrysler and Canada a 2 percent stake.
Our bailout database has been updated to reflect all this, so you can see on Chrysler's page, for instance, that U.S. commitments now total $12 billion. The total for the auto company bailout now stands at $34.78 billion. That figure rises to $39.78 billion if you figure in aid the U.S. has provided to Chrysler's and GM's parts suppliers.
More aid to the auto companies is on the way. Obama said that Chrysler's financing arm, which has received $1.5 billion in aid, would have required "an unacceptably large stream of taxpayer money to remain viable" -- and so it won't be getting any more. GMAC, GM's financing arm (which has received $5 billion so far), will be stepping into the breach, though not without some more government help. Obama said GMAC would be getting more money, but didn't say how much.
The Treasury has also launched a program to guarantee warranties for cars sold by GM and Chrysler. Yesterday, it committed $280 million to backstop Chrysler's warranties as the company goes through restructuring.