Snappy newsletters. Simple Facebook sharing. Spirited comments. Sweet features are waiting… GET THEM NOW!

Hot on Facebook
Guy Buys $123 Safe on eBay, Finds $26,000 Inside Seller tries to get half the cash back, fails »

Auto Giants Press Congress for $25B Loan

Credit pinch, oil prices could cost thousands of jobs, execs say

By Ambreen Ali,  Newser User

Posted Sep 18, 2008 9:43 AM CDT

(Newser) – The CEOs of US auto giants seem to have convinced some in Congress they, too, need billions in federal loans, the Detroit Free Press reports, though it’s uncertain if they’ll get the $25 billion they’re asking for. High oil and commodity prices and tightened credit threaten jobs in an already ailing industry, the heads of General Motors, Ford, and Chrysler told lawmakers yesterday.

Last year, only models 25% more fuel-efficient than competitors’ qualified for federal aid; automakers want that restriction loosened to 10%. With support from both presidential candidates, the idea—likely be included in a budget resolution to be considered next week—faces little opposition. “It's extremely important we try to do something,” Senate Majority Leader Harry Reid said, calling the loan's cost, at $7.5 billion, “small change.”

The Beat by General Motors is seen at a Detroit auto show. American auto companies say higher oil and commodity prices, coupled with the credit pinch, are hurting them.
The Beat by General Motors is seen at a Detroit auto show. American auto companies say higher oil and commodity prices, coupled with the credit pinch, are hurting them.   (AP Photo/Paul Sancya)
Detroit automakers are asking for a federal loan to modernize plants.
Detroit automakers are asking for a federal loan to modernize plants.   (AP Photo/Carlos Osorio)
Chrysler's CEO says conversations on the hill was very encouraging, very candid and very straightforward.
Chrysler's CEO says conversations on the hill was "very encouraging, very candid and very straightforward."   (AP Photo/Jerry S. Mendoza)
« Prev« Prev | Next »Next » Slideshow
To report an error on this story, notify our editors.
A snapshot of the day's best news stories.
 
COMMENTS
Be the first to comment on this story.

More Newser Stories

Why Asian Automakers Don't Want Detroit to Fail

As GOP Stiffens, Auto Bailout Prospects Hit the Skids

Big 3 Bailout Plan Goes to White House

Big 3 Execs Finish With Senate

In DC Corral, the Big 3 Dare Congress to Shoot


NEWS FROM OUR PARTNERS
Other Sites We Like:   24/7 Wall St.   |   Betty Confidential   |   BuzzFeed   |   Cracked   |   Fark   |   Timelines   |   The Frisky   |   Geek Sugar   |   NewsOne