For Automakers, $25 Billion Is No Longer Enough
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.