Lifeline for Detroit?

[CarMadMike]

 

It's taken two rounds of Congressional hearings, some major pride swallowing and three detailed business plans, but it looks as if the Detroit 3 will be getting the federal loans they need, though not as much they asked for. A deal was reportedly reached between Democratic leaders and the White House that will supply around $15 billion in federal loans to the struggling U.S. auto industry. While General Motors, Ford and Chrysler asked for a combined maximum of $34 billion, the $15 billion is designed to ensure they stay alive until March when the issue will be readdressed with the input of a fresh Obama administration. GM and Chrysler reportedly need around $11 billion to survive the new year, while Ford has said it would only need government aid if one of the other two went under.

 

We're hearing that a deal was reached between Democrats and the Bush administration late Friday after top Dem. Nancy Pelosi gave in to the White House and its position that the money should come from $25 billion in loans previously approved to help the automakers retool for energy fuel efficient vehicles, rather than drawing the aid from the $700 billion Troubled Asset Relief Fund for struggling financial institutions. In return, Pelosi is seeking a guarantee that the money would be replenished in "a matter of weeks."

 

Both the Senate and House of Representatives have confirmed they will be meeting on Tuesday to vote on the deal, and it's expected that strong oversight of how the loans are used, whether in the form of an individual car czar or committee, will be part of the final package.

 

Party on, Detroit.

 

Source: Autoblog

[Nodz86]

Just seen this, Jay Leno is for it and Clarkson is against it

[KoenigseggBG]

Just seen this, Jay Leno is for it and Clarkson is against it

So I guess we should be against it...:confused:

[Eudemon]

Clarkson did have some fair points and reading the comments from americans on autoblog who think Clarkson is only against it because it's america are idiots! As if they had bothered to watch the last few Top Gears he is also against the bailout of any car company even those in Britain.

 

Like so many people have been saying Bankruptcy is a good thing for big multi-nationals as it means they start fresh, renogotiate all contracts with suppliers etc and can get back on their feet rather than just incurring huge loans that will put them even more in debt resulting in the Bankruptcy that will kill them off, and not the one they can clean the slate and get back on their feet.

[gingervette]

See that's what I think. Sure, no none will buy a car from a Bankrupt car company, but they won't be bankrupt for long. Fresh start, yay!

 

But Congress as decided to bail them out and while it is a bad decision IMO, there is nothing I can do.

[Baltoman]

Com'on guys you can do it. WE NEED YA!

[Nodz86]

See that's what I think. Sure, no none will buy a car from a Bankrupt car company

 

Not strictly true. Here in the UK after Deawoo went under people still bought there cars (ok they where eventually bought by Cheverolet). Then poeple kept buying Rovers and MG's when they went under even though they are prown to head gasket faliure and parts became even harder to find.

[Pherelas]

See that's what I think. Sure, no none will buy a car from a Bankrupt car company, but they won't be bankrupt for long. Fresh start, yay!

 

 

We got our TVR after they had gone bust, the problem is with it you have to work out who owns the car before you buy which is a pain in the arse.

 

Anyway they should have all gone bust ages ago, surly it would have been easier to let them go into liquidation eailer on when there is more chance of getting most of the money back or at least completely nationalise them. Feel sorry for the American tax payer.