Turns Out, $25 Billion Is Not Enough After All
December 02, 2008
As Congressman and industry experts suspected, the $25 billion in bridge loans Detroit's three automakers requested of the federal government is not enough.
In their viability reports submitted to Congress Tuesday, the three auto companies have requested a combined $34 billion.
General Motors wants up to $12 billion in loans in various installments to help it through 2009. GM also requested a $6 billion line of credit in case the economy gets worse. Ford is asking for a line of credit of $9 billion that it may not tap into but wants as a security blanket in case the recession extends well into 2009. And Chrysler wants $7 billion -- by Dec. 31.
Posted by Michelle Krebs at 2:13 PM under Business , Chrysler , Ford , GM | Comments (2) | digg this | Seed Newsvine
Is anyone really surprised given the lack of preparation the semi-domestic three showed two weeks ago that their numbers were way off? I hope Wagoner and most of the GM board are fired if they receive any US taxpayer dollars.
Please please congress do not let the CEO's and other senior management keep their stock options. Great wealth only possible with a taxpayer bailout should not be bestowed to these people should they actually survive. Annual salary is such a small percentage of their compensation (The CEO's). This is supposed to be about jobs.
Posted by: georgehughes35 | December 02, 2008 at 4:19 PM
It shouldn't be up to Congress to interfere with peoples' compensation. But they are trying to because we foolishly are letting them. I know, they're asking for loans backed by taxpayer dollars, so nothing ever comes from the federal government without strings attached. And I don't think they should asking for the bailout in principle either.
A better way to help these companies would be for the government to get out of their way, instead of impeding their business efforts as has been the case for so many years. How about a tax cut and reduced or eliminated CAFE regulations? That would unleash a lot of capital and release the shackles. But those who control Congress would never give up the control they have, particularly now that they've got the industry where they want them. "You do what we say, or you don't get the money, and we'll bury you".
Posted by: cwc1 | December 03, 2008 at 6:48 PM