rssFor Automakers, $25 Billion Is No Longer Enough
Wednesday, December 03, 2008 at 10:59 am
- 4 Comments
Last month, when Detroit’s Big Three automakers stormed Capitol Hill in search of $25 billion in emergency loans, a number of lawmakers wondered aloud where that figure came from — and whether it would be enough.
It seems there was reason for their skepticism.
Chrysler yesterday afternoon was the last of the automakers to unveil its revamped business plan, which calls for $7 billion in federal loans before the end of the year. Combined with requests from General Motors for $18 billion and from Ford for $9 billion, that puts the proposed bailout at $34 billion.
It’s a drop in the bucket relative to the more than $7 trillion that Washington has offered to bail out Wall Street’s financial institutions. Still, remember when $35 billion over five years to fund a health program for kids was deemed too expensive? It’ll be tough to make that same claim when SCHIP returns next year.
4 Comments
Comment posted December 3, 2008 @ 9:34 am
Ford Motor Co., Detroit's says it's OK for now. Although it is seeking up to $9 billion in bridge financing, but says it hopes to complete turnaround without accessing the loan should Congress agree to make the funds available. But it wants the ability to access up to $9 billion in government credit. They also said that if GM fails it could take the entire domestic auto industry down with it.
So FORD needs GM?
Comment posted December 3, 2008 @ 7:33 pm
The failure of the Nations Auto Makers is not the responsibility of tax payers of the US. Their large bonuses to executives and elaberate expenses used by the executives are part of the reason for their downfall. The auto union with the large hourly salry for workers producing autos on a production line where robots can do most of the work is a waste of money. Workers should recieve a reasonable hourly wage and some extra work benifits. This would help the automakers remain profitable. The past practices of the executives, workers and union are the down fall of the Auto Industry. Why should the Government bail them out with tax payer money. WE SHOULD NOT. THAT WOULD BE AN WASTE OF GOOD MONEY. THEY NEED TO OPERATE THEIR COMPANYS WITH WISDOM AND NOT BEG FOR SOMEONE TO COVERUP THEIR MISTAKES AND FIX THEIR WASTEFUL WAYS.
Comment posted December 5, 2008 @ 7:11 pm
If every time Detroit's Big Three automakers come to Capitol Hill in search of emergency loans the request goes up higher and higher. No wonder that they are in financial trouble. They obviously do not know what it takes them to operate. The leaders of these companys may need to go back the the basic thoughts of math that can help their losses.
It may be hard but if they are no wiser than they indicate when trying to budget their loans, then we should say to battle your company on your own. Your loan request is more than we feel you can repay and that the auto industry is a bad risk based on past performance.
Comment posted January 27, 2009 @ 10:48 am
I'm a DOT Engineer. I'll keep this in mind if I get the chance to speak with manufacturers about safety improvements.
Have you done studys reguarding the liabilites or damages that your device could cause. For example, could it cause snags in the the interior? Could someone get hurt when reaching for their seatbelt? The image on your website makes it appear sharp.
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