Detroit Three rescue package approved by House; Must now pass Senate
12/10/2008, 9:48 PM
By Nick Aziz
The U.S. House of Representatives Wednesday evening passed a bill that promises to provide $14 billion in aid to U.S. automakers. The measure passed 237 to 170, due largely to Democratic dominance of the House. Just 32 Republicans voted in favor of the bill. But it’s not home free for the Detroit Three yet. The bill still has to pass the Senate, and Republican opposition there could prevent passage.
The $14 billion figure represents what appears to be the bare minimum for the Detroit Three to continue operations. GM has said it needs $4 billion by the end of December and $6 billion in the first quarter of 2009 to avoid bankruptcy. Chrysler says it needs $4 billion by the end of the same timeframe to stay afloat. Ford, which remains relatively healthy financially, is not expected to need bailout dollars at this time.
There are serious doubts as to whether the bill can pass the Senate, which has a more even ratio of Republicans to Democrats. 205 of 225 House Democrats voted in favor of the bill, or roughly 91 percent. Just 18 percent of Republicans — 32 of 182 — were in favor of the measure.
If a similar 91 percent of Senate Democrats and 18 percent of Senate Republicans vote in favor of the bill, it would be able to “pass” with roughly 52 out of 100 votes. But the real magic number is 60 of 100, which is the only way to prevent the gridlock of a filibuster. Even if independents Bernie Sanders and Joe Lieberman vote in favor of the plan, proponents would still be 6 votes short of a true victory.
All of this probably means more negotiating between Republicans and Democrats — including possibly integrating components of the alternate proposal unveiled by House Republicans Wednesday afternoon.
Even if the bill passes in its current form, it’s possible the Detroit Three will need further assistance in 2009. GM says that will depend on whether industry sales continue to slow — a factor impacted by credit availability, jobs, and overall economic conditions. Ford was seeking a multi-billion-dollar credit line that it would only tap if the industry takes a turn for the worse. Future aid will rest with the Obama administration and the new Congress in early 2009.
12/10, 10:01 PM
posted by:
DB9
FIrst
DB9;-)
12/10, 10:29 PM
posted by:
johnnycanuck
And after the Senate… what? The Klingon High Council?
12/10, 10:32 PM
posted by:
gtv6
They’re debating whether $14 billion dollars is going to be spent to aid the automotive industry, and all you can think to say is “First”?
12/10, 11:02 PM
posted by:
jdasch1
Its all coming out of money already given to them in the energy bill…get it done already!! Less than 40 days left until a new president can get this economy going again…then maybe cars will be selling again. Right now everybody is wondering if they will have a job to make a car payment. Thats not the kind of climate to sell autos in.
12/10, 11:24 PM
posted by:
geobaum
I wish someone would kill that son of a bitch Shelby.
12/11, 1:37 AM
posted by:
Mutant@DCX
Perhaps Blagojevich can arrange at least one more seat, preferably of democratic leaning
12/11, 8:06 AM
posted by:
scottns
Jonny… You just made my morning
12/11, 9:26 AM
posted by:
Bankruptcy2009
Don’t forget the Auto bail out Bill has to pass the Romulan Military Joint Chiefs of Staff first before it gets to the Senate for approval
12/11, 9:34 AM
posted by:
bauer100
http://www.boycottalabamanow.com
12/11, 10:02 AM
posted by:
Fleming in Tennessee
These DC morons gave big oil 17 billion of YOUR dollars when they were making 100’s of billions in net profits and they can’t LOAN America’s Automobile Industry money to save America’s Industrial Base? How do these morons continue to get reelected? Politician give billions of OUR dollars to Jap & German companies to build plants in the US, but nothing to our American owned companies….what’s up? Sound like they are on the take….well they always are!
12/11, 10:15 AM
posted by:
Borat
Johnny, after the Senate, we (south of the border) have larger deficit, higher taxes and newly minted president Barack Hussein Obama. 4 years from now we will have congress demanding responsible to answer where 150 billions vanished and why no buys Volt for 50K during major recession. Then higher taxes.
12/11, 10:52 AM
posted by:
bradleygt
posted by:bauer100
http://www.boycottalabamanow.com
nice, just went to the website. I dought if it does any good, but still good to see them fighting back at this ignorant self-serving politician. To bad, because i like ‘bama. Beautiful state, specially by the TN and GA border area.
12/11, 11:04 AM
posted by:
yarddog82abn
wtf….. let’s get it over with already…..
12/11, 12:06 PM
posted by:
desertdweller
Bauer100 – what a brilliant site! I agree with whoever was the mastermind behind it! I also believe that we should hold the senator’s and rep.’s accountable for the national deficit. I think that we sould look at restructuring their payplans, retirement benefits, and “perks”. Let’s face it, the politicians are nothing more than business people trying to run the company as a business. I think that their business model is flawed. They are way over paid for the amount of work they do & are completely out of touch with what is really going on in the trenches (most of them). Every time I go to vote, I make sure that I don’t vote for the incombents and we should all do the same. I know it’s a little to late this year, but next election we can send a message that we are sick & tired of their B.S.
12/11, 12:59 PM
posted by:
mayer_ray_nagin
Johnny, our Congress is made up of a bunch of “pataks” anyhow. No need to get the real klingons involved.
12/11, 1:12 PM
posted by:
johnnycanuck
mayer_ray: “Kapla”!
12/11, 1:58 PM
posted by:
Struggle
Depressing.
Simply mind bogglingly depressing.
12/11, 3:38 PM
posted by:
400horseSS
Doesn’t the Klan stilll run free in ‘Bama, maybe when I lose my job Massa Shelby will let me pick cotton on one of his family plantations.
12/11, 7:46 PM
posted by:
1c3d0g
johnnycanuck: some people have sh!t for brains, that’s why.