bailout
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The $14 billion auto loan bill passed by the House late yesterday may stall out in the U.S. Senate under fire from Republican opposition. The GOP wants more concessions from the UAW and more concrete reforms by the carmakers before money is handed out, among other changes. A counter-proposal by Republican Sen. Bob Corker of Tennessee offers a range of changes to the bill currently before the Senate. Automotive News reports that the Corker proposal would have carmakers slashing union worker wages to non-union levels and converting two-thirds of the companies' bondholder debt to equity. As the...
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Sweden offers $3.4 billion package to auto industry
The U.S. House of Representatives has just passed the $14 billion loan bill and it's now headed to the Senate, but that's not the end of the story. Lawmakers in Sweden have proposed their own aid package, totaling $3.4 billion for their country's auto industry. The primary players there are Saab...
Nelson Ireson -
Analysts predicting only 11.5 million vehicle sales in U.S. in ‘09
CSM Worldwide, an outfit that provides automotive market forecasting, is predicting that 2009 will be the worst year for the auto industry since 1982, with just 11.5 million vehicles expected to be sold in the United States. Previously it was reported that the breaking point for General Motors...
Viknesh Vijayenthiran -
Detroit 3 bailout likely to come with 'car czar'
With the legislation for a loan package to secure the immediate futures of the Detroit 3 is reaching the 'discussion draft' stage today, talk of an overseer to administer the funds has begun. The bill actually stipulates that there may be multiple overseers, raising the possibility of an oversight...
Ralph Hanson -
GM renews commitment to American people
No one in the U.S. can reasonably be unaware of the current condition of the U.S. car market or its primary domestic companies. The carmakers' current pleas to the U.S. Congress for federal loan packages to help prevent bankruptcy - or worse - are the focal point of even mainstream news coverage of...
Nelson Ireson -
Congress reaches agreement on $15b to $17b Detroit 3 bailout
Democratic leaders of Congress revealed late on Friday that they had reached an agreement on a bailout plan for the Detroit 3 ranging in the vicinity of $15 billion to $17 billion, about half what the carmakers were seeking. The plan still needs to be voted on but this is expected to take place...
Ralph Hanson -
In the perpetual tug-of-war that is modern opinion polling, a new poll has found that 61% of Americans are opposed to the issuance of federally subsidized loan money to the car industry. The new poll, conducted by CNN/Opinion Research Corp. contradicts an earlier study funded by General Motors. Looking deeper at the CNN survey, 7 in 10 of those polled feel that a bailout would be unfair to the American taxpayer, and only 15% think they would be directly affected if the industry were to collapse. Additionally, 53% of the respondents don't think that government aid for the car industry will...
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Ford submits plan to Congress, promises EVs, possible profits by 2011
The return trip to Washington by the nation's key automotive CEOs will be a considerably more concrete happening, with real-world plans, hard numbers and specific goals. Ford is the first to announce its ideas for the future, and the plan revealed today offers a goal of profitability by 2011, and...
Nelson Ireson -
Detroit 3 ready revised bailout proposals ahead of Tuesday's Congress hearing
The CEOs of the Detroit 3 will be returning to Washington this week to present new business plans to Congress, all in the hopes of garnering a $25 billion federal loan package to prevent them from collapsing under financial pressure. General Motors’ board has already met to discuss its plan...
James Martinez -
Detroit 3 head back to Washington December 5 to offer plan for future
The heads of the Detroit 3 headed to Washington earlier this month in the hope of securing a second emergency aid package to supplement the previously earmarked $25 billion for more efficient vehicles to meet looming CAFE regulations. Unfortunately for the carmakers, top Democratic legislators...
Ralph Hanson -
GM creates backup plan in case it doesn't get federal aid
The current financial woes of General Motors are no secret these days, with the Detroit 3 carmaker admitting recently that it will run out of cash early next year without the help of a federal loan. Despite the seriousness of the situation, as well as new polls that show the public is in favor of...
James Martinez -
Big Three CEOs speak before U.S. Senate
The three men at the head of Chrysler, General Motors and Ford are on the spot before lawmakers in the U.S. Senate today, pleading their case for a 'bridge loan' to help the automakers span the gap to a perceived future of prosperity. Remarks released ahead of the hearing before the Banking...
Nelson Ireson -
During his campaign for U.S. President, Barack Obama repeatedly declared his support for the auto industry and indicated he would support it against the tide of the economic downturn. Today President-Elect Obama reaffirmed that commitment with a speech on the economy delivered in Chicago, noting that the depth of the industry, which includes suppliers, small businesses and whole communities, requires action to help preserve it. Obama said his Transition Economic Advisory Board would help keep the nascent Obama administration informed as the Bush Administration winds down its residency in...
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Congress weighs new aid talks as U.S. sales reach 25 year lows
It's no secret that the U.S. economy, and not least the automotive industry, are in the midst of some of the most difficult times in recent history, and the U.S. Congress is now considering additional aid to the industry to help preserve it in the face of sales at 25-year lows. Sales dropped to a...
Nelson Ireson -
$25 billion auto industry loan package approved by President Bush
Call it a bailout or call it an aid package, the car industry is only concerned with securing the funds it believes it needs to remain competitive as CAFE standards tighten. The federal government has taken heed of calls from both unions and the carmakers, with both houses of Congress having...
James Martinez