Auto Industry and Congress, Last Ditch

By November 20, 2008Economy

Washington Post, “As Support for Auto Aid Stalls, Efforts Shift to GOP Loan Plan“:

Congressional allies of the auto industry were rushing late yesterday to put together a bipartisan aid package for faltering Detroit car companies, but lawmakers said they may leave town today without taking action.

Senate Democrats abandoned plans to take $25 billion from the $700 billion financial rescue program enacted last month, acknowledging that they did not have enough votes. Detroit’s advocates quickly turned their attention to a Republican proposal to keep the car companies afloat.

That proposal, which was endorsed by the White House, calls for modifying a loan program created to help the automakers develop advanced technologies and retool factories to produce more fuel-efficient vehicles. Sen. George V. Voinovich (R-Ohio) said the money would be given to the automakers temporarily to fund day-to-day operations. But when the money was repaid, he said, the loan program would be used for its original purpose.

And several local reax.

 

 

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