Top executives of the Detroit Three were scheduled to be back in the
nation’s capital Thursday, November 6, to make a personal appeal for billions of
dollars in additional federal help.
Leaders of the companies and the United Auto Workers are to meet with House
Speaker Nancy Pelosi, D-California, about providing more low-interest loans to
automakers, according to published reports Thursday.
A likely vehicle for the funds would be economic stimulus legislation that
Pelosi has said she wants Congress to enact in a lame-duck session scheduled to
begin November 17.
The meeting comes fast on the heels of action by the Bush administration to
speed some of the $25 billion in low-interest loan money that Congress and the
White House approved in September for automakers and suppliers.
Late Wednesday, the Department of Energy issued what it called an “interim
final rule” that provides companies with guidance on how to apply for loans.
The rule, however, cannot remove restrictions that federal law places on the
loan funds—mainly that they be used to undertake projects for substantially
improving fuel economy and that projects be “financially viable” without
additional federal money.
All of which means the funds, even if they become available sooner than the
six to 18 months predicted earlier by the department, still may not relieve the
cash crisis said to be threatening the survival of some companies.
A department spokeswoman reiterated to Automotive News this week that the
loans were never meant to provide a capital infusion for the automobile
industry.
The new loan package, if approved, would have fewer restrictions, and could
help keep struggling companies going through a deep recession, industry sources
have said.
Filed by Harry Stoffer of Automotive News, a sister publication of Workforce
Management. Amy Wilson contributed to this report. To comment, e-mail editors@workforce.com.
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