| Page 2 of 2 < |
As Support for Auto Aid Stalls, Efforts Shift to GOP Loan Plan
|
TOOLBOX
   Resize
COMMENT
 Discussion Policy
 CLOSE
Comments that include profanity or personal attacks or other inappropriate comments or material will be removed from the site. Additionally, entries that are unsigned or contain "signatures" by someone other than the actual author will be removed. Finally, we will take steps to block users who violate any of our posting standards, terms of use or privacy policies or any other policies governing this site. Please review the full rules governing commentaries and discussions. You are fully responsible for the content that you post.
Who's Blogging  |
In testimony before the House Financial Services Committee, the heads of General Motors, Chrysler and Ford repeated their assertion that the companies had slashed costs, reoriented their production lines and were well on their way toward profitability when the global financial crisis crushed sales and pushed the domestic auto industry to the brink of collapse.
With auto sales at the lowest point in more than 20 years, the companies are burning through cash and say they urgently need government assistance to continue paying their bills. If a new $25 billion loan is approved, Chrysler chief executive Robert L. Nardelli said he expects to get about $7 billion. Ford chief executive Alan R. Mulally, who runs the strongest of the three firms, said he may be forced to ask for the same amount if the economy continues to deteriorate. And GM Chairman G. Richard Wagoner Jr. said he expects to get as much as $12 billion.
With that much money, Wagoner said, "We think we have a good shot to make it through next year."
Stung by the escalating costs of various Wall Street bailouts, lawmakers pressed the executives to say how they would spend $25 billion from the taxpayers.
"The American people have bailout fatigue," said Rep. Spencer Bachus (Ala.), the panel's senior Republican.
Several lawmakers also berated the auto titans for traveling on private jets to ask for a government handout.
"There's a delicious irony in seeing private luxury jets flying into D.C. and people coming off of them with tin cups in their hands," said Rep. Gary L. Ackerman (D-N.Y.). "It's almost like seeing guys show up in the soup kitchen in high hat and tuxedo."
