DETROIT — The Treasury Department has turned down a request by General Motors for up to $10 billion to help finance the automaker’s possible merger with Chrysler, according to people close to the discussions.
The Treasury Department told GM on Friday that the Bush administration will focus on speeding up a $25 billion loan program for fuel-efficient vehicles approved by Congress in September.
Treasury officials were said to be reluctant to broaden the $700 billion financial rescue program to include industrial companies or to play a part in a GM-Chrysler merger that could cost tens of thousands of jobs.
The Bush administration is still considering a range of options to aid the Detroit automakers, said auto industry and administration officials.
