GM Inside News Forum banner
1 - 9 of 9 Posts

·
Registered
Joined
·
3,557 Posts
Discussion Starter · #1 ·
Bush Approves Loans for Auto Makers
By MATTHEW DOLAN
SEPTEMBER 30, 2008, 8:18 P.M. ET

President Bush on Tuesday signed into law a low-interest loan package to aid U.S. auto makers, but those struggling companies will still have to wait months to find out how and when they can tap the $25 billion designated to smooth their transition to building more fuel-efficient vehicles.

The loan package was approved last year as a way to help auto makers and their suppliers meet fuel-economy standards set by the federal government. But the funding for the package wasn't passed by Congress until this year. One estimate put the total cost to auto makers at $100 billion to meet stricter efficiency standards that require vehicles to reach 35 miles per gallon by 2020.

General Motors Corp., Ford Motor Co. and Chrysler LLC have argued it was essential to get the loan help as soon as possible to rejigger plants to build smaller cars and infuse money into programs for gas-electric hybrids and other vehicles relying on alternative fuels. The recent credit crunch, along with double-digit declines in U.S. auto sales, have only put additional pressure on the auto makers to gain quick access government-backed loans, according to industry analysts.

"The auto loans can't come soon enough," said Kip Penniman, automotive analyst at KDP investment Advisors. Calling the loans a "lifeline" for GM in particular, Mr. Penniman said each of the auto makers will likely need to access some of that funding next year. Detroit's Big Three, once bullish on a turnaround in the auto sector in 2009, now expect to be another challenging year for auto sales in the U.S.

Under the approved legislation, the Energy Department now has 60 days to write regulations, setting the parameters that will govern who qualifies for the loans and when. Congressional leaders, especially from Michigan, have called on the department to adhere to that timeline in the hopes that the companies would have access to the loans by the middle of 2009.

But an Energy Department spokeswoman said Tuesday that Congress failed to lift several restrictions on that process, making it more difficult to meet the timeline. She earlier estimated that it could take between six and 18 months to complete.

"Congress set a timed deadline of 60 days for the regulations to be issued -- not for the loans to be made," department spokeswoman Healy E. Baumgardner said in a statement Tuesday. "Specific statutory requirements outline administrative and legal procedures which will require a longer timeframe for full implementation of the program….Congress had the opportunity waive one or more of these requirements enabling for a faster process, but failed to do so."

More here: http://online.wsj.com/article/SB122281787423492359.html
 

·
Registered
Joined
·
7,686 Posts
If toyota stopped making all of their trucks and SUVs then they would be past the 35MPG law, If GM did the same then they would have to only gain about 4MPG (if even that much) to hit 35MPG.

Its not that its going to be hard for them to hit it, its going to be hard for them to hit it while selling big trucks and SUVs as their core business but lucky them people dont want so many of those vehicles anymore.
 

·
Registered
Joined
·
10,431 Posts
I don't approve of buyouts, but since this is a loan and loans are very, very difficult to come by even for the short term....I guess I can live with it.
 

·
Registered
Joined
·
4,822 Posts
I don't approve of buyouts, but since this is a loan and loans are very, very difficult to come by even for the short term....I guess I can live with it.
Considering the U.S. Government made millions off the Chrysler loans it shouldn't be that hard to live with.

Honestly, I have no idea what the details of these loans are, but with Chryler, the U.S. Government did a very good job of protecting itself through several measures including securing assets.

Also, you have to keep in mind how much money it would cost the Government if GM, Ford or Chrysler failed in unemployment benefits alone.
 

·
Banned
Joined
·
423 Posts
Ok first they give money to banks, then they want to give some more money to the banks, then they want to give more money to detroit 3. Well what about me? I want 300k low interest loan or free money. Can i get it? NO because gov. will not give it to me. So why should Gov. give money that they do not have to failed businesses. IF they can not survive let them go out of business. IF i lose my job i am going to lose my house gov. will not bail me out? Why should i bail out these corporation? How about this. Take those 25 billion and buy out those corporations. Then turn them around and sell them fro profit how about that. Not just giving them free money.
 

·
Registered
Joined
·
3 Posts
I just hope the loans are avalible to u.s. based companies and manufacturing facilities located in the u.s.only.
we need to slow the trade defict by increasing u.s based manufacturing before its to late. any tax breaks or loans that are needed for american jobs is welcome. the alternative is to continued wage decline as the trade defict grows larger by the day and we get further in debt.
 

·
Registered
2015 Cadillac XTS Platinum, 1989 Merkur XR4Ti, 1989 Merkur Scorpio
Joined
·
11,108 Posts
Well what about me?
How many high-paying jobs, how much healthcare and how many pensions do you support?
When you're the nation's largest provider of 2 out of 3 of these, then you can ask "what about me?"
 
1 - 9 of 9 Posts
Top