BREAKING NEWS: Automakers to get $15 billion in federal loans

[Peter]

BREAKING: Automakers to get $15 billion in federal loans

Posted Dec 5th 2008 10:12PM by John Neff (http://www.autoblog.com/bloggers/john-neff)
Filed under: Government/Legal (http://www.autoblog.com/category/government-legal/), Chrysler, LLC. (http://www.autoblog.com/category/chrysler/), Ford (http://www.autoblog.com/category/ford/), GM (http://www.autoblog.com/category/gm/)
http://www.blogcdn.com/www.autoblog.com/media/2008/12/bigthreeceos_opta.jpg

It's taken two rounds of Congressional hearings, some major pride swallowing and three detailed business plans, but it looks as if the Detroit 3 will be getting the federal loans they need, though not as much they asked for. A deal was reportedly reached between Democratic leaders and the White House that will supply around $15 billion in federal loans to the struggling U.S. auto industry. While General Motors, Ford and Chrysler asked for a combined maximum of $34 billion, the $15 billion is designed to ensure they stay alive until March when the issue will be readdressed with the input of a fresh Obama administration. GM and Chrysler reportedly need around $11 billion to survive the new year, while Ford has said it would only need government aid if one of the other two went under.

We're hearing that a deal was reached between Democrats and the Bush administration late Friday after top Dem. Nancy Pelosi gave in to the White House and its position that the money should come from $25 billion in loans previously approved to help the automakers retool for energy fuel efficient vehicles, rather than drawing the aid from the $700 billion Troubled Asset Relief Fund for struggling financial institutions. In return, Pelosi is seeking a guarantee that the money would be replenished in "a matter of weeks."

Both the Senate and House of Representatives have confirmed they will be meeting on Tuesday to vote on the deal, and it's expected that strong oversight of how the loans are used, whether in the form of an individual car czar or committee, will be part of the final package.

Party on, Detroit.

[Source: Reuters (http://www.reuters.com/article/topNews/idUSWEN145820081206), Photo by Brendan Hoffman/Getty]



http://www.autoblog.com/2008/12/05/breaking-congress-makes-tentative-deal-for-15-billion-in-autom/

[MarauderVOL]

I watched some of the hearings on Fri. and it became obvious that 14-17 Billion was what they were going to get. I found it interesting that it was brought up on more than one occassion by several Congressmen how AIG got roughly 140 Billion over a 3 day period and not one single Congressional hearing was held.

[Spectragod]

At least they will be able to receive the end of the year and Christmas bonus's now.

[Ezbok58a]

Yeah right, despite the fact that their business plans had said all employee bonuses would be suspended until further notice. :rolleyes:

Being that it did go through, they can't 'just' decide to undo that and give everyone bonuses again, considering it's the Goverments or more specifically the Taxpayers money they'd be paying themselves with.

[Spectragod]

Those CEO's and administrators don't see themselves as "employee's", they see themselves above that. Therefore, paid vacations and bonus's will most likely happen, I would be surprised if it didn't.

[Ezbok58a]

They can't.

If they do paid vacations or bonuses now, the Goverment will pull the rug out from under them.

Look at the S**tstorm they got for taking the Company Jets to the hearings. You think the Goverment will allow them paid vacations and bonus's when they have a copy of their business plan that specifically says 'No' to those two specific things?

The Media and the Goverment will watch them like a hawk. They screw up then it's all over Johnny.

Not to mention all three will be getting paid $1.00 a year till they're actually out of trouble.

[Spectragod]

Oh, I understand what your saying, I am refering the their past track record for spending. Let's hope our Gov't will step up and make them tow the line.

[SC Cheesehead]

Oh, I understand what your saying, I am refering the their past track record for spending. Let's hope our Gov't will step up and make them tow the line.

Wish I felt confident. IMO, any time the gov't gets involved in private business, things end up REALLY f^cked up.:shake:

[justbob]

I for one am glad to see this and i hope it all works out. Our economy does not need even more lay offs.