General Motors (GM) expects to get its first round of government money by the end of the month, said Ray Young, the company's chief financial officer.

Speaking during a press conference to discuss the government bailout announced earlier Friday, Young said GM finalized an agreement with the government at around 9:00 a.m. Friday and is now working on the definitive loan agreement. He said the aim is to have the first round of funding by December 29.

During the broad press conference, GM Chief Executive Rick Wagoner said that despite concerns that GM may not be able to prove its viability by March 31-- the government imposed deadline -- Wagoner said he doesn’t think it’s impossible. GM is “highly confident we will be able to meet that test,” said the executive noting the funding agreed upon Friday is what the company needs to get it through March.

As part of the agreement if GM and Chrysler haven’t attained viability by March 31 the loan will be called and all the funds returned to Treasury. A company will only be deemed viable if it has a positive net present value, taking into account all current and future costs, and can fully repay the government loan.

When asked if GM will end talks with Chrysler now that it got government aid, Wagoner said the company is focusing on executing the GM plan.

As for getting the United Auto Workers Union competitive with foreign car makers, Wagoner said GM has a “very good track record” working with its union and that it looks forward to upcoming discussions. Wagoner noted he has no plans to leave the company and that sales during the month of December are running a “little ahead of track” although he stressed that projections were very modest. “Overall economic conditions are still difficult,” said Wagoner.  

In a statement commenting on the White House bailout, UAW President Ron Gettelfinger said the Bush Administration unfairly signaled out UAW workers.

"While we appreciate that President Bush has taken the emergency action needed to help America's auto companies weather the current financial crisis, we are disappointed that he has added unfair conditions singling out workers," said Gettelfinger.”These conditions were not included in the bipartisan legislation endorsed by the White House, which passed the House of Representatives and which won support from a majority of senators.

AUTO LOAN BREAKDOWN

$9.4B for GM
$4B for Chrysler
TOTAL: $13.4 Billion in Jan-mid Feb

$4B more for GM only in Mid Feb.

Gettelfinger said the UAW will work with the Obama administration and the new Congress to “to ensure that these unfair conditions are removed."

On Friday the White House announced auto manufacturers will be immediately provided with $13.4 billion in short-term financing from the Troubled Asset Relief Program or TARP and an additional $4 billion in February.

The auto companies receiving the funds will be held to different standards than the financial companies that were given money. The car makers must accept limits on executive compensation and eliminate perks like corporate jets. They must report any transactions over $100 million, and the government has the authority to block any transactions it does not deem reasonable. The companies must also provide warrants for non-voting stock, and are not allowed to issue any new dividends if they are still indebted to the government.

To aid employees, the auto makers must put in place salaries that are equal to or competitive with those of foreign auto makers that are based on American soil by the March 31 deadline.

Senior administration officials have said the current auto industry loans are for manufacturing companies only, not for finance companies like GMAC. However, officials have indicated that the Treasury is working on assistance for the finance companies at a later date.

Fredrick “Fritz” Henderson, president at GM told reporters GM is in “constant” dialogue with Treasury officials and the Federal Reserve about GMAC converting to a bank holding company. “We need to solve this important issue,” said Henderson.

In an interview with FOX Business Network, Flint, Mich., Mayor Donald Williamson said a potential deal involving GM, Chrysler and Cerberus could be in the works. Williamson said a deal could involve GM giving a 41.8% stake in GMAC -- its financial unit– to Cerberus, which would make the private equity company’s total investment in GMAC 91.8%,   In return, GM would  receive Chrysler’s automotive business.

“I think they have the deal made,” said Williamson, citing conversations he has had with people involved in the discussions. “You will see that General Motors will own Chrysler.”

The Wall Street Journal reported in Friday’s edition that GM and Cerberus are talking about a deal involving the finance units of both companies