6 Governors Push Feds for Quicker Auto Industry Relief

Tight credit hurts car sales: Granholm
By Nick McMaster,  Newser Staff
Posted Oct 30, 2008 2:29 PM CDT
Chrysler executive Jim Press and Michigan Gov. Jennifer Granholm stand next to the automaker's new 2009 Dodge Ram pickup at the Warren Truck Plant in Warren, Mich., Sept. 12, 2008.   (AP Photo)
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(Newser) – Michigan’s Jennifer Granholm and five other US governors urged federal officials today to act quickly in delivering financial aid to the auto industry, the Detroit Free Press reports. In a letter, the governors of Delaware, Kentucky, New York, Ohio and South Dakota stress that the credit crisis has hurt auto sales by making it difficult for consumers to get loans.

“We appreciate your recent efforts to provide liquidity to the credit and financial markets, and urge that you use your broad regulatory authority to ensure that your continued actions help promote liquidity within the US auto industry,” the governors wrote. Congress approved $25 billion in low-interest loans, but no funds have yet been dispersed. General Motors and Chrysler are seeking $10 billion more to facilitate a merger.