Auto Bosses to Press Pelosi for Another $25B

Latest reports sound alarm on industry crisis

By Rob Quinn, Newser Staff

Posted Nov 6, 2008 1:50 AM CST

(Newser) – 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.

[Images (2)]

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A UAW worker walks out of the Kokomo Casting Plant in Kokomo, Ind. (AP Photo/Michael Conroy)

A Ford Motor Company employee assembles the new 2008 Ford Taurus X. (AP Photo/M. Spencer Green, file)

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We now will have a friend of the auto industry and manufacturing in the White House. President-elect Obama understands you can’t have an economy that doesn’t make things. - Michigan Sen. Debbie Stabenow

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Nov 14, 2008 9:22 PM CST

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Auto Bosses to Press Pelosi for Another $25B