Auto Task Force To Provide More Funds to GM and Chrysler

President Barack Obama's auto task force is prepared to offer General Motors (NYSE: GM) and Chrysler LLC additional government funds to prevent them from slipping into bankruptcy, the Wall Street Journal reported.

The two companies have requested $22 billion more -- including $9 billion for the second quarter. But the task force may not disburse new aid immediately, choosing instead to preserve that as leverage.

The Journal said the auto task force is not yet ready to put forward a comprehensive fix, as they continue to learn about the auto business and impact on workers and related industries throughout the Midwest.

WSJ Article

UPDATE: Shares of General Motors (NYSE: GM) are surging on the news. The stock most recently traded at $3.28, about 9.7% higher than yesterday's closing price.

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