Republicans and Democrats spar over need for federal rescue of U.S. auto industry. Senate Democrats will introduce bill on Monday.
Hardline opponents of an auto industry bailout branded the industry a "dinosaur" whose "day of reckoning" is near, while Democrats pledged Sunday to do their best to get Detroit a slice of the $700 billion Wall Street rescue in this week's lame-duck session of Congress.
The companies are seeking $25 billion from the financial industry bailout for emergency loans, though supporters of the aid for General Motors Corp. (GM, Fortune 500), Ford Motor Co. (F, Fortune 500) and Chrysler LLC have offered to reduce the size of the rescue to win backing in Congress.
Senate Democrats intended to introduce legislation Monday attaching an auto bailout to a House-passed bill extending unemployment benefits; a vote was expected as early as Wednesday.
A White House alternative would let the car companies take $25 billion in loans previously approved to develop fuel-efficient vehicles and use the money for more immediate needs. Congressional Democrats oppose the White House plan as shortsighted.
Majority Democrats will need at least a dozen GOP votes in the Senate to prevent opponents from blocking their measure - assuming all Senate Democrats support it. Senate Republican Leader Mitch McConnell of Kentucky questioned whether there was sufficient Democratic support for an auto bailout in a statement released Sunday.
For the full article click on the link:
http://money.cnn.com/2008/11/16/news/companies/auto_bailout_sunday.ap/index.htm
See also:
http://money.cnn.com/2008/11/15/news/companies/automakers_bailout_congress.ap/index.htm
Comment:
Once again the government considers a bailout. This time it is the automobile industry.
Governmental subsidies might be one possible way to get US automakers back on track. But the governmental requirements should be strictly fulfilled. US automakers should not be allowed to use that money to produce their regular products. Instead, an even bigger focus should be placed on cars which run on alternative energy, thus on research and development, because sooner or later gas prices will not be affordable for consumers anymore. The sooner one company gets a bigger competitive advantage than other companies the bigger economical growth one company will accomplish and boost its profits.
Oezguer (Oscar).
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1 comment:
I completly agree with Oscar. the auto industry needs to spennd more money in research and development of alterante fuel vehicles. We can not rely on gasolin. Too many variable affect how much we have and haow much we pay for it. We must become for energy indepedent
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