House Passes Auto Bailout, But Senate Will Be Tough

Yesterday, the House voted 237 to 170 in support of the $14 billion auto bailout, which would give emergency loans to GM, Chrysler and Ford. The Big Three must also present restructuring plans by March 31; Bloomberg News says that GM only has weeks of cash left to keep operating. However, it's now a "race against the clock," because it appears it may fall short of the 60 votes needed to pass it as Senate Republicans have voiced opposition to the plan (they think the "Car Czar," appointed to oversee the plan, doesn't have enough authority). Rep. John Dingell (D-Michigan) said, "Without this bridge, we’re going to fall into the biggest calamity this country has known since the Great Depression. A terrible disaster looms."

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By Jen Chung in News on December 11, 2008 9:05 AM

Comments [rss]

babyhitler

first of all, the banks already used the sky is falling scenario so the auto industry needs a bigger pity party quote. second of all, they won't even give them 14 billion, so the government doesn't really give a shit about the auto industry. Fuck them. Ford will survive.

r1b2

2 things are killing the US auto industry: the burdensome cost of health and retirement benefits and the fact that folks simply prefer Japanese and German cars more. The bail-out is a Band-Aid but the bleeding can't stop. It's based on fundamentals.

drewo

And if they are given this money, they will completely change their business plans in 3 months? Do you really believe they won't come back in a few months asking for more time - and money?

fishfryin

in a purely theoretical sense perhaps, but if these 3 companies go out of business there will be a shitstorm that we have never really seen in this country