Auto workers and automakers alike will be breathing a sigh of relief today as the House approved a $25 billion loan package that will be available to automakers and suppliers. The low-interest government loans will be available to any automaker or supplier with operations in the U.S., but the loans must be used exclusively for the production of more fuel-efficient vehicles.
The House of Representatives passed the vote on Wednesday by a margin of 370 to 58, with an initial amount of $7.5 billion to be set aside to get the program started, according to Automotive News. The Senate is expected to pass the bill next week, with President Bush expected to sign the bill into law shortly after.
The loan program was actually enacted last December with the passing of new CAFE regulations, but the bill did not have the authority to put the $25 billion loan program into action.
The approval of the bill will be most advantageous to the domestic automakers, who are struggling to convert truck and SUV factories to produce more fuel efficient small cars. The Federal loans should also secure more jobs in the auto sector, which is a bit of good news in an otherwise down time.
Despite the appearance of a bailout, the House Energy and Commerce Committee emphasizes that the loans are not intended to be a bailout for the auto industry. “Some critics will call this loan package a bailout,” Rep. John Dingell, D-Mich., chairman of the House Energy and Commerce Committee, said. “It is not.” He continued: “The auto direct-loan package is a good deal for auto workers and a good deal for taxpayers.”
Whatever you want to call the loan package, it should be a major boost to the Big Three.
09/24, 5:16 PM
posted by:
zeeck
That’s two whole months in Iraq!, does that mean we will get out two months earlier?
09/24, 5:35 PM
posted by:
carguy123
How about we dont even have a war. The goverment needs to stop bailing huge companies out and bail out its citizens instead from getting screwed over by getting laid off and nto being able to get a decent job cuz everyone is cutting back on everything.
09/24, 5:53 PM
posted by:
yarddog82abn
WOW…”government loans will be available to any automaker or supplier with operations in the U.S., but the loans must be used exclusively for the production of more fuel-efficient vehicles” that means new life for Tesla and Frisker. Cool,
09/24, 5:56 PM
posted by:
peacemf
they should ask for MORE
why not??? the banks are getting 700BILLION!!!
09/24, 6:01 PM
posted by:
yarddog82abn
Now if Toyota get’s some of this money they have to spent every cent in the U.S. right? “any automaker or supplier with operations in the U.S.” Or can they use the money that U.S. tax payer are paying for so that they can better production over in Japan or ells where, dose any one know a little more detail????
09/24, 6:03 PM
posted by:
yarddog82abn
And by better production I mean research and development…
09/24, 6:25 PM
posted by:
Lariat Luxury Locomotive Liner No.3
Had there been executive changes in all the Big 2.5, I would been all for this. But there is not and those who created the problems are still there to pay themselves their perks, outlandish bonuses, and simply piss the funds away. What’s wrong with America—lots. Hey, it’s okay as the American taxpayer gets a further bilking.
09/24, 7:09 PM
posted by:
johnnycanuck
25 billion, eh? I hardly think that’s going to be enough. If you were into sports franchises that might buy you the entire NFL. Then if you felt like going green you could just watch the Eagles or the Packers.
09/24, 7:24 PM
posted by:
The Stig
I’m sure Ford’s Mark Fields will find a way to rationalize abusing the corporate jet privileges in the name of making more fuel efficient “bold” vehicles … and now at taxpayer’s expense. That’s beautiful.
09/24, 10:52 PM
posted by:
J2D
With operations in America=could someone please explain this part to me?
And does in America mean Mexico too? Being that it’s part of N.A. operations.Because if it does then Ford should, and probably will get a break with their $3B baby.
09/24, 11:10 PM
posted by:
Kaizen
I want to know where the oversight is to see where these companies are really putting this money. It could be very convenient for companies to put the money towards paying off debts in the name of acquiring new debt for ‘green production’ methods. This could quickly go to hell in a hand basket.
09/25, 2:43 PM
posted by:
global_lightning
The “loans must be used exclusively for the production of more fuel-efficient vehicles” is meaningless; it just creates a shell game. Suppose GM had budgeted $10B for fuel-efficient vehicles. They re-allocate the $10B for something else (employee buyouts, Camaro production) and take out a $10B government-backed loan to replace the original fuel-efficiency funding.
09/25, 5:52 PM
posted by:
ktulu
I hope they use this $ wiesely.
Least we have a chanh of gettinhg sujm of it back, unlike this $1T (or more) bWall St. bailout that’s coming
09/25, 6:56 PM
posted by:
autonut
Well, auto industry did not use wisely the dow from investors for whom they had fiduciary responsibility. What makes anyone think that our tax money will not be pissed is puzzling to me. At least we don’t own GM, Ford and Cerberus like we own AIG.
10/04, 9:01 PM
posted by:
BBMotorCorp
So, does that include companies in the process of developing motors that require no fuel at all? As in a motor capable of driving a vehicle with more horsepower than currently available with virtually no fuel cost and no need for expensive batteries or other fuel? We are currently developing a motor that runs on hydraulics and is capable of powering the smallest of vehicles to the largest of vehicles as well as homes and businesses with absolutely no fuel or emissions. Do we qualify?
BB Motor Corp,Inc
bsmith15707@yahoo.com