Lawmakers cheer $25B for car industry

[xcel]

The industry had warned that because the loans could only apply to vehicles that were 25% more efficient than direct competitors, few new models would qualify.

Justin Hyde – Detroit Free Press – Sept. 24, 2008

Rep. John Dingell, D-MI, lobbied for and succeeded in pushing $25 Billion to the US Automakers up front with another $25 Billion later.

Gobbly gook continues to infect the language the automakers and politicians use in the industries largest cash grab in history. -- Ed.

WASHINGTON -- The U.S. House today approved $25 billion in loans for the troubled U.S. auto industry. Michigan lawmakers hailed the plan as key toward saving thousands of jobs in the state and vowed to press for another $25 billion next year to boost the industry’s retooling.

The loan deal dwarfs the $1.2-billion bailout of Chrysler Corp. in 1979, and reflects the economic crisis threatening the survival of Detroit automakers and the companies that rely on them. Automakers had made the loans their priority over the past several weeks, sending all three chief executives to blitz Congress.

Under the bill, the Bush administration will have two months to write the rules for the loans, and Sen. Debbie Stabenow, D-Mich., said she expected the money to begin flowing to the industry by the end of the year.

“There is no bigger issue for Michigan than what we’re accomplishing today,” said Rep. Fred Upton, R-St. Joseph. “This is a testament to the strengths of every member.” … [Read More]

[Tochatihu]

Hope this bridge goes to somewhere other than...Nowhere.

DAS

[Earthling]

Under the bill, the Bush administration will have two months to write the rules for the loans, and Sen. Debbie Stabenow, D-Mich., said she expected the money to begin flowing to the industry by the end of the year.

God help us!

Why not wait and let the next President write those rules? This President and his gang of incompetents helped cause the problem in the first place. I have no confidence in him anymore.

Harry

[beatr911]

Here we go again.

Just like bailing out little Suzy for having sex with her classmates, this kind of gov't activity pretty much eliminates the dis-incentive of risky behavior by the auto industry. The next round of bailouts in next business cycle downturn (7 or 8 years from now) will be even worse because Detroit has learned to " Go ahead, really doesn't matter anyway."

These are grown adults who should know better. When will they ever learn?

There are lots of really talented engineers and entrepreneurs out there who could start some car companies with really cool vehicles. I'd like to see these kinds of loans to Tesla or the Aptera guys, or others. Imagine the quantum leap in vehicle technology we'd see with that kind of competition in the market place.

[Radio_tec]

The low interest loan appropriation isn't a done deal because Bush could still veto it. In light of his, Chicken Little the Sky is Falling, speech last night I guess it would be awkward for him to push for a $700 Billion for his pals on Wall Street and tell Detroit to go pee up a tree.

Let's hope they don't let it all go down the drain the way they did when we paid them $1 Billion in the Partnership for A New Generation of Vehicles where the taxpayers paid to get concept cars like the Ford Prodigy at 72 mpg, the GM Precept at 80 mpg or the Chrysler ESX-3 at 72 mpg. These were concept cars and were completed by 2000. Then a new administration came in and the big 3 told the administration they wanted the program killed and it was. The rest of the story about investing their future in big trucks and SUVs we know already.

[mparrish]

Let's all sing along.........................

http://www.youtube.com/watch?v=daBx_PBrvSE

[Tochatihu]

OK, now the deal is done. I would like to know how we might keep track of how this money will benefit the US auto buyer? Accountability with a minimum of smoke and mirrors. Hope this is not too much to ask.

DAS

[koreberg]

50 billion, thats like 200k from each driver in the US. When can I expect my 2 zr1s to be delivered.