Detroit automaker CEOs Robert Nardelli ( Chrysler ), Alan Mulally ( Ford ) and Rick Wagoner (General Motors) are in front of Congress for the second day of testimony as they attempt to secure up to $34 billion in low-interest federal loans. Today, the three CEOs are speaking in front of the House Financial Services Committee.
The hearing begins at 9:30 a.m. Eastern. Watch this space as coverage unfolds.
1:09 p.m.
The committee has released Nardelli, Mulally and Wagoner. Other industry experts have been called up to testify.
Committee Chairman Barney Frank, a Massachusetts Democrat, rushed out the CEOs, stating that time was of the essence.
11:29 a.m.
“Are you going to use more US dollars to source parts from overseas?” Donald Manzullo, an Illinois Republican, asked.
Wagoner’s answer: “No.”
11:05 a.m.
Spencer Bachus, an Alabama Republican, has begun addressing the automakers’ credit situations.
“I can’t imagine why you’re not getting expedited consideration,” Bachus said, comparing the automaker loans to the $700 billion previously granted to Wall Street.
11:02 a.m.
All three automakers have been asked whether their suppliers would be able to survive should the automakers go under. Ohio Democrat Charlie Wilson, who represents a state heavily invested in the auto industry, questioned whether suppliers would survive if the automakers went into bankruptcy.
All three CEOs testified that, while they are heavily in contact with their suppliers, they would not be willing to dole out any of the loans directly to the suppliers.
10:30 a.m.
Once again, the automakers came under fire for the CEO’s perks. Republican Ginny Brown-Waite of Florida once again dug at the CEOs for flying private jets to Washington the last time they came before Congress. This time, all three automakers drove to the hearing – and Wagoner drove a Chevy Volt mule.
10:02 a.m.
Michael Castle, a Delaware Republican, agreed with the automakers that bankruptcy would be a negative outcome. This is a major step as Republicans have generally been opposed to bailing out the automakers and have voiced the collective opinion that the automakers need to go into bankruptcy to recover.
The automakers, not surprisingly, argue that recovering from bankruptcy would be impossible.
But Castle said that the automakers need oversight and that the government needs assurance that the money will help.
