The CEOs of the Big Three are in Washington this week, but their pleas for emergency low-interest loans for the auto industry may be falling on deaf ears. While the Democrats on Capitol Hill have largely supported the idea of a Detroit bailout, most Republicans are still heavily entrenched in their opposition to any such legislation.
The Big Three are asking for up to $50 billion in low interest government loans in order to side step Chapter 11, but the vast majority of Senate Republicans are steadfast in their opposition to any further government bailout money.
“The financial situation facing the Big Three is not a national problem, but their problem,” Sen. Richard Shelby of Alabama, ranking Republican on the Senate Banking Committee, told Automotive News. “I do not support the use of U.S. taxpayer dollars to reward the mismanagement of Detroit-based auto manufacturers in such a way that allows them to continue and compound their ongoing mistakes.”
Mercedes-Benz , Hyundai and Honda all call Alabama home, but none of the Detroit Three have operations there.
Following President-elect Barack Obama’s resignation from the Senate, Democrats hold just a 50-49 membership advantage in the chamber, according to Automotive News, which would not be enough to defeat a filibuster.
While Washington is still in limbo about a Detroit bailout, one thing is for sure – GM, along with the other domestic automakers, will likely fail without emergency bailout loans.
