JULIE HIRSCHFELD DAVIS
Associated Press
November 18, 2008
Detroit’s Big Three auto makers are begging Congress for a $25 billion government rescue, while the legislation clings to life support on Capitol Hill and top lawmakers and the White House suffer from bailout fatigue.
- A d v e r t i s e m e n t
Democratic congressional leaders want to tap the $700 billion Wall Street rescue package for new loans to U.S. auto manufacturers and suppliers, but the White House and GOP lawmakers say the beleaguered industry shouldn’t get any new funds.
President George W. Bush and GOP lawmakers instead propose diverting $25 billion in loans approved by Congress in September – designed to help auto manufacturers retool their factories so they can make more fuel-efficient vehicles – to cover the firms’ immediate financial woes.
General Motors, Chrysler and Tesla Motors Inc. have applied for loans and Ford CEO Alan Mulally said the automaker plans to apply on Tuesday. GM, Chrysler and Ford have not disclosed the amount of funding they’re seeking from the Energy Department or for what purposes. Tesla said it was seeking about $400 million in loans for two projects.
But auto executives, backed by leading Democrats, insist they need another $25 billion in emergency loans to avert a collapse of one or more of their companies before year’s end. That would bring the total federal help for the industry to $50 billion this year.
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