A White House spokesman says officials are still trying to decide how to save the faltering U.S. auto companies.
Press Secretary Tony Fratto says officials are still looking at
financial data. He says they want to make sure any bailout of the Big
Three - General Motors, Ford and Chrysler - is in the best interest
of U.S. taxpayers.
Officials have been in talks with General
Motors and Chrysler to finalize details of a rescue package based on
the $700 billion set aside to aid the banking industry. More
help could soon be on the way from Canada.
Minister Tony Clement announced Friday an estimated $3 billion in loans to the car companies but only if the U.S government
comes through with an industry-wide bailout first.
Motors (GM) and Chrysler say they will collapse in January without
government help. Canada, like the U.S., is worried about losing
The Center for
Automotive Research, a U.S. research institution, warns the collapse of just one of the Big Three
would wreak havoc on related industries, costing the U.S.
2.5 million jobs. And the British newspaper, The Financial
Times, says if GM is forced to file for bankruptcy, it would be the
"biggest industrial failure in U.S. history."
collapse of one of the major U.S. automakers also worries their biggest
rivals. In a statement, Japanese automaker Toyota warned a major
bankruptcy will make it harder for all car companies.
and parts suppliers from Europe to India also are frightened.
Countries like Sweden and Brazil have already moved forward with plans
to support their struggling carmakers. And European leaders are under
pressure to come up with loans and other aid for major auto companies.
President George Bush initially resisted requests from Democratic
congressional leaders to use money from the massive financial sector
bailout to help the carmakers. But he changed his stance after a
short-term, $14 billion loan package for the automakers died in
the Senate Thursday night when Democrats and Republicans could not
agree on the details of the legislation.
Barack Obama is urging Congress and the Bush administration to "find a
way" to aid the battered U.S. automakers.
Some information for this report was provided by AP and Reuters.