Big Auto Makers Seek Government Lifeline
Record plunge in sales and tight cash flow situation, big car manufacturers like GM, Ford, and Chrysler are pleading for help from the US federal government. They need billions more in addition to the $25 billion loan to build more fuel efficient cars.
Democrats in Congress are pushing for a bill that will release a $25 billion loan for the big car companies in exchange that they will give the government ownership stakes. They are hoping for the fast passage of the auto bail out bill.
The plan is to get a chunk from the $700 billion allocated for the Wall Street life line to help the big car manufacturers. The White House has declared that it is open to the idea. President-elect Obama calls for more help to be given to the soul of US manufacturing.
The additional help from the government still needs to pass a lot of road blocks. Car makers are crossing their fingers that it will not be derailed if it goes through the Senate. They are also hoping that the aid will still be able to reach them in time so the industry will be able to survive.
Some politicians are gearing towards hastening for the release of the $25 billion fund for car makers to develop more fuel efficient vehicles. Other lawmakers are thinking of rescue plans going beyond the big three car front liners.
Both Democrats and Republicans also realize that the bail out plan for the auto industry must be planned well so it will benefit both car manufacturers and car buyers.