The CEOs of Detroit's troubled Big Three automakers and the head of the UAW are set to meet today with House Speaker Nancy Pelosi to ask for another $25 billion in government loans, the Detroit Free Press reports. Detroit had its worst sales month in 25 years in October, and insiders say General Motors' financial results, due out tomorrow, will be so bleak that the government will have to step in if the company is to survive.
The new set of loans, unlike the $25 billion in retooling aid already approved, would be used to cover general business costs for the cash-strapped automakers. Barack Obama has promised to hold talks with automakers soon after taking office, and industry leaders warn he will need to move fast to prevent Detroit's woes from deepening the downturn. "The collapse of the auto industry at this time would be devastating for a new president," warned a Chrysler representative.