Text Only
Search

US States Plead With Federal Government to Help Auto Industry

30 October 2008

U.S. automaker General Motors introduced the Chevrolet Volt
U.S. automaker General Motors introduced the Chevrolet Volt
America's ailing automakers are getting more support as they plead with the U.S. government for help.

The governors of six U.S. states, Michigan, Delaware, Kentucky, New York, Ohio and South Dakota, have sent a letter to the Treasury Department, requesting the government take immediate action.

In the letter, released Thursday, the governors warn numerous companies connected to the auto industry, as well as millions of workers, would be at risk if the major auto companies fail.

It follows announcements by the car makers earlier this week about plant closings and potential layoffs.

Once known as the "Big Three," General Motors, Ford and Chrysler have been struggling to survive, battered by high oil prices and the financial crunch, which has made it difficult for consumers to get car loans.

GM, the largest U.S. automaker, announced yesterday its third quarter sales from July through September fell by more than 11 percent.

Some economists say it is possible at least one of the U.S. car makers will not survive. And GM has been in talks with Chrysler about a possible merger. Sources close to the negotiations have said GM is seeking $10 billion in loans to facilitate a deal.

White House Spokeswoman Dana Perino says the government has been talking with all three automakers. She says portions of the companies that offer loans to buy automobiles may be eligible for help through the $700 billion financial rescue package passed by Congress earlier this month.

Other officials say the government could make money available from a $25 billion loan program designed to help the industry produce more fuel-efficient vehicles.

emailme.gif E-mail This Article
printerfriendly.gif Print Version

  Related Stories
US Economy Contracts in July-September Quarter
US Cuts Key Interest Rate to Stave Off Economic Downturn
US Considers Auto Industry Bailout
Jobs, Economy, and Energy Intersect With Politics in Janesville, Wisconsin
White House says US In for 'Tough' Economic Times
 
  Top Story
Obama, World Leaders Honor Veterans on Anniversary of End WWI

  More Stories
Clinton Discusses North Korea, Burma Issues at APEC
Cambodia Rejects Thai Request to Extradite Former Leader
Body of Missing US Soldier Found in Afghanistan
South Korean Military on High Alert After Naval Clash
Obama Pays Tribute to Fort Hood Shooting Victims   Audio Clip Available  Video clip available
Washington Area Sniper Executed
Bomb Rocks Northwestern Pakistan
Lebanon's Unity Government Convenes for First Time
Report: Africa's Disappearing Wetlands Produce 'Alarming' Levels of Greenhouse Gas
IEA Urges Action on Climate Change
Somali Pirates Deny Arms Seizure  Audio Clip Available
Cross-Examination Begins in War Crimes Trial of Former Liberian President  Audio Clip Available
US Development of H1N1 Vaccine Hits Snag  Video clip available
Clinton Urges 'Compassion' for Americans Detained in Iran  Audio Clip Available
World War II Museum Expansion Aims at Younger Generations  Audio Clip Available  Video clip available