Automaker Rescue Package Dead for Now
November 20, 2008
By Michelle Krebs
WASHINGTON -- A bipartisan plan to provide Detroit automakers and suppliers with bridge loans using the already appropriated $25 billion to retool to more fuel-efficient vehicles came and went in a matter of hours Thursday.
Democratic Congressional leaders, realizing they did not have the votes to pass the plan that was presented around noon Thursday, announced less than three hours later that they would not put it to a vote this week.
Instead, they are requiring automakers applying for the loans to submit a plan of financial viability with an explanation of how the loans will help them transform their business by December 2. Congress may then reconvene for a possible vote on December 8.
"The sad reality is no one has come up with a plan that can pass the House and Senate and be signed by President Bush," Senate Majority Leader Harry Reid, D-Nevada, said at a press briefing. "The auto companies have not been able to convince Congress or the American people that this bailout will be their last."
Added House Speaker Nancy Pelosi said: "Until they show us the plan, we cannot show them the money."
All of the same rules that were part of the original Department of Energy funding of up to $25 billion for retooling would apply. So likely would further rules about not allowing the funds to be used for executive compensation, golden parachutes, lobbying. Other possibilities may be a limitation of executive salaries and a partial ownership of the companies by the government.
In addition, some Congressmen indicated that the UAW needs to go back to the bargaining table for possibly more concessions in their contract.
"We can only help if they [U.S. automakers] are willing to help themselves," Reid said.
Some experts believe a rescue package is dead until the new Congress and Obama administration take charge in January.
Posted by Michelle Krebs at 11:56 AM under Chrysler , Companies , Featured , Ford , GM | Comments (1) | digg this | Seed Newsvine
What is funded from this country stays in this country.
Add to the rules that all funding provided by the US taxpaying citizens must be invested in their US operations. Not Mexico, Canada, Romainia, Russia, China, etc.
If they need capital for overseas operations, They shall have to apply to the host countries or private sector funding.
Posted by: fulcrumb | November 22, 2008 at 7:04 PM