GM receives another $2B in loans

US automaker General Motors has received another $2 billion in government aid to add to its working capital, the Treasury has announced. On Tuesday, the US government agreed to lend up to $5 billion to GM as the giant automaker faces the possibility of bankruptcy. GM has already received more than $13 billion in emergency loans from the US government. The automaker announced on Thursday that it would halt production at some US factories for up to nine weeks starting next month in a move which would provisionally cut the pay for as many as 55,000 American autoworkers. The US government has given GM until June 1 to complete restructuring plans or file for bankruptcy, after President Barack Obama's administration rejected a proposal by the company in late March. Separately, Chrysler and its Canadian union reached an agreement on pay and benefits intended to cut costs and keep the automaker from bankruptcy. Under the new agreement, the Canadian Auto Workers (CAW) agreed to cut a range of benefits, an annual Christmas bonus, and add flexibility to work rules that would make it easier for Chrysler to hire temporary workers. The agreement would help Chrysler save an estimated 240 million Canadian dollars ($198.2 million) in annual labor costs. The deal should be approved by the 8,000 CAW-represented workers this weekend. Chrysler has until April 30 to reach agreements that would cut its debt and labor costs and seal a partnership with Italian carmaker Fiat, in order to secure more government funds to help it survive.