Democrats Propose $25B Cut of the $700B Bail Out Package for Big 3
Democratic Congress friendly to plea for aid from automakers, but the Bush administration still giving the cold shoulder
By Alex Ricciuti
November 13, 2008 6:27 PM
Filed Under: American, Chrysler, Corporate/Financial, Ford, General Motors, Industry
The CEOs of the Detroit 3 (General Motors, Ford and Chrysler), along with United Auto Workers President Ron Gettelfinger, will be going to Washington next week, hat in hand, and plea for a substantial bailout package.
The leading representatives of the American automotive industry will testify before the U.S. House Financial Services Committee chaired by Democratic House member Barney Frank. Their message will be simple -- help us or calamity awaits.
The Big 3 are asking for a bailout package in the form of 25 billion dollars in emergency loans to keep them afloat through next year, which will likely be one of the worst years the US automotive industry has seen since the Depression. All three Detroit automakers are burning through their cash reserves at an alarming rate as sales collapse in the US market. GM is burning about 2.3 billion a month right now. Ford lost 7.7 billion in the 3rd quarter of this year.
The Democratic Congress is warm to the idea of helping the industry. "A collapse of the American automobile industry would be the worst possible thing that could happen at a time when we are already weakened," Frank told Bloomberg TV, as quoted in a story in the Detroit News.
But the Treasury Secretary of the United States, Henry Paulson, has stuck to the Bush administrations position on the matter, which is that the automotive companies are not eligible for the bailout money since that 700 Billion dollar fund has been earmarked for financial institutions only.
The administration has continued to be skeptical of a bailout package for US automakers and it would be very difficult for the Democratic Congress to pass veto-proof legislation to help the automakers.
It was GM CEO Charles Wilson, who said back in 1955 , "What is good for GM is good for America."
It remains to be seen if the political leadership of the country believe that to be true today.
Related Articles
- Top six automakers report 30 to 47 percent sales drop - a 26 year low (7 comments
- Big Three ready survival plan for Congress (6 comments
- American automaker's 25bn bailout looks doubtful (12 comments
- Congress puts forth bailout plan with strict demands (7 comments
- GM reveals more cash saving measures (2 comments
Comments
Holding the people of this country at ransom to get what he wants is what Bush does best. Let's see if the Dem's have enough balls to give him the finger by getting enough support to over ride a veto.
http://www.democracynow.org/2008/11/12/white_house_denies_attempt_to_link
ya, good luck...
Add Comment
- BMW 7 Series M Sport Receives Matt Black Trim Treatment by EAS
- Stig Approved: Caterham Superlight R500 – for £19.50
- Mercedes' AMG Division Considering Diesel?
- Bentley Unveils World’s Most Luxurious Charity Bus
- Porsche Cayman X-Wide by XTR Carchip
- 2011 Mercedes C-Class Facelift Latest Spy Photos
- Superchips Golf GTi MkVI ECU Remap Adds 44bhp
- Try outrunning this! F999 Police Car Unveiled
Latest F1 News
BMW Announce Deal to Sell F1 Team to Peter Sauber
Nov 27, 09 4:30 PM
Force India retains Sutil, Liuzzi
Nov 27, 09 4:00 PM
Ecclestone denies reviving Donington GP bid
Nov 27, 09 4:00 PM
Toro Rosso seat for Hartley possible - brother
Nov 27, 09 4:00 PM
Alonso works hard to win Ferrari 'confidence'
Nov 27, 09 4:00 PM
Canada GP return to be announced on Friday
Nov 27, 09 4:00 PM
American investors to rescue Sauber - report
Nov 26, 09 8:00 PM
Conway, Ericsson to test for Brawn at Jerez
Nov 26, 09 7:00 PM
Hamilton not worried by McLaren-Mercedes split
Nov 26, 09 6:30 PM
Wolff reveals rejected Williams investors
Nov 26, 09 6:00 PM














