Big Auto Makers Seek Government Lifeline
November 16th, 2008 — 09:34 pm
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.