President George W. Bush said on Friday that US government will provide US$13.4 billion in short term loan to bailout the country's crippled auto industry from bankruptcy.

"In the midst of a crisis and a recession allowing the US auto industry to collapse is not a responsible course of action," Bush told reporters, noting a possible bankruptcy would deal "an unacceptably painful blow to hardworking Americans."

The US$13.4 billion loan, draw from the US$700 billion financial rescue fund, would be available this month and next, US$9.4 billion for General Motors Corp. and US$4 billion for Chrysler LLC, according to the US government.

An additional US$4.0 billion may be available in February.

General Motors Corp. and Chrysler LLC have warned they could be weeks from collapse, while Ford Motor Co. said it may not need the fund right now.

"These are not ordinary circumstances," President George W. Bush said in announcing the aid, adding there's "too great a risk" that a bankruptcy filing would send the economy into a "deeper and longer recession."

Meanwhile, Bush said the restructuring the auto industry would require "meaningful concessions" from all involved in the industry, emphasizing the automakers must make reforms.

"The auto makers and unions must understand what is at stake and make hard decisions necessary to reform," Bush said. "We intend to send a clear message to everyone involved in the future of American automakers."

All restructuring must be completed by March 31 to show how they would restructure to ensure their survival.

(Xinhua News Agency December 19, 2008)