|
|
"A comprehensive, collaborative elections resource."
|
Automotive Rescue Is Threatened By Impasse
|
|---|
| Parent(s) |
Issue
|
| Contributor | ArmyDem |
| Last Edited | ArmyDem Nov 17, 2008 09:59pm |
| Logged |
1
[Older]
|
| Category | News |
| Media | Newspaper - Washington Post |
| News Date | Wednesday, November 19, 2008 03:00:00 AM UTC0:0 |
| Description | By Lori Montgomery and Paul Kane
Washington Post Staff Writers
Tuesday, November 18, 2008; Page D01
Senate Democrats yesterday unveiled a plan to speed $25 billion in emergency loans to the imperiled automobile industry, but they acknowledged that its chances of passage are slim without a breakthrough in talks with the Bush administration.
The apparent impasse leaves automakers facing the grim possibility that a government lifeline may not appear until late January, when President-elect Barack Obama takes office. With buyers staying away from auto showrooms, Detroit's Big Three are hemorrhaging cash, and analysts fear General Motors, the weakest of the group, could run out of money by Christmas.
Yesterday, in a fresh effort to conserve funds, GM announced that it would delay by two weeks reimbursements to dealers for buyer incentives, a move that could temporarily save the company as much as $500 million. But GM's gain would be a painful loss for dealers nationwide. "This is one example of how the impact [of GM's cash crisis] is being felt throughout the country," said GM spokesman John McDonald.
If even one of the automakers seeks bankruptcy protection, executives say, the consequences would be dire for the nearly 5 million U.S. workers whose jobs are tied to the industry. Some lawmakers in both parties have expressed skepticism about a federal bailout for Detroit, though, saying they are willing to take the chance of letting an automaker fail.
Treasury Secretary Henry M. Paulson Jr. has said the Bush administration hopes to avoid that outcome, and he reiterated the point yesterday in a meeting with House Speaker Nancy Pelosi (D-Calif.) and other leading House Democrats. |
| Share |
|
|
2¢
|
|
| Article | Read Full Article |
|
| Date |
Category |
Headline |
Article |
Contributor |
|
|
