GM not included in the bailout plan
By admin on November 4, 2008
General Motors has had some serious bumps on the road to success in the past couple of years, so it’s no surprise that when the auto maker heard out about the 0 billion bailout plan, it salivated and put out its hand for a slice of the pie.
GM’s chairman, Rick Wagoner, has been lobbying Treasury Secretary, Henry M. Paulson Jr., for up to billion to help out with the financing of the automaker’s likely merger with ailing Chrysler.
Here’s more, from the NY Times:
- Treasury officials were said to be reluctant to broaden the 0 billion financial rescue program to include industrial companies or to play a part in a G.M.-Chrysler merger that could cost tens of thousands of jobs.
- But it remained unclear whether the officials were also seeking to avoid making any decision that would conflict with the goals of a new presidential administration. The Democratic candidate, Senator Barack Obama, has said in recent days that he supports increasing aid to the troubled auto companies, while Senator John McCain has not said whether he would support aid beyond the billion.
- The Bush administration is still considering a range of options to aid the Detroit automakers, which are losing billions of dollars and rapidly depleting their cash reserves, said auto industry and administration officials, who did not want to be identified because of the sensitive nature of the discussions.
- The first step is to get the Energy Department to expedite the release of the billion in low-interest loans for G.M., Chrysler and the Ford Motor Company.
- Beyond that, the administration is also bringing the Commerce Department into discussions about channeling additional aid to the automakers.
- With auto sales deteriorating to their lowest level in 15 years, Detroit’s traditional Big Three are struggling to stay solvent and avoid bankruptcy.
- Support for aiding the industry is growing among political leaders in states with heavy automotive employment. Last week, the governors of Michigan, Ohio, New York, Kentucky, Delaware and South Dakota wrote a letter to Mr. Paulson and the Federal Reserve chairman, Ben S. Bernanke, urging “immediate action” to assist the industry.
Read the full article, U.S. Rejects G.M.’s Call for Help in a Merger.
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