The US Congress has made it clear that it will provide "short-term and limited assistance" to the US car makers as they attempt to restructure.
General Motors, Chrysler and Ford bosses have just finished two days of meetings with the Democrat and Republican law makers in Washington.
The breakthrough in negotiations came at the end of the second day when house speaker Nancy Pelosi ceded to President Bush's demand that any bail-out package must be funded from the $25bn set aside to fund environmental car development and retool old factories.
A series of conditions are likely to be attached to any funding, such as strict limits on executive remuneration and perks.
It is also likely that an extra condition will prevent the car makers from using any of the money, which was originally packaged to promote the development of more fuel-efficient cars, to challenge states that are implementing tougher emissions regulations.
“We will not permit any funds to be borrowed from the advanced technology programme," said Pelosi, "unless there is a guarantee that those funds will be replenished in a matter of weeks so as not to delay that crucial initiative."
This suggests that one of Barack Obama's first acts as president of the US will be to enable a much more comprehensive package. Officials are working on the current legislation over the weekend, in time for the Senate to reconvene on Monday.
Talk of a merger between Chrysler and GM as a potential solution is still circulating Washington, and Chrysler has made it clear that it could support such a move.
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Re: Big Three rescue package still on hold
I did not realise that implications were so broad.....it looks good; a $10K car....fantastic!!! when those they get going, they get going!
As a general round up, I found this on the Car Magazine site...........all the news bulletted with links:
http://www.carmagazine.co.uk/News/Search-Results/Industry-News/Crunch-watch-the-economic-crisis-and-the-auto-industry/
Also I like that Calcars link.....
Re: Big Three rescue package still on hold
They have presented for the bailout Business Plans based on "transport electrification", this is, mass production of electric vehicles and phase-out of only-gasoline cars.
The bailout would include the condition that it would be used to buy batteries and electric motors to suppliers (at least one motor per car).
They would offer in the first half of 2009 a 10,000 US$ all-electric car (i.e. a city car) highway capable and with 4kWh.
http://www.calcars.com has proposed a fleet moratorium (this is, don´t buy cars upto the moment appears affordable electric vehicles) and use the 7,500 Federal tax credit for pre-paids (the user would give 2,500 dollars to the pre-order to acquire the 10,000 $ electric car).
All the Big Three production would be electric in the near-term. Also, gasoline cars would be banned in the next years (first in natural parks and big cities´ centers).
This is the way to electrification and the only to carmakers´ survival.
On the other hand, in Poznan would be an agreement about transport electrification.
Regards.
Re: Big Three rescue package still on hold
they do many amazing things!.....I think GM also do some low emission buses which are pretty top notch.....the americans do many wonderful things.....I really like america and american's....not to repeat, but they are fantastic people and its a fantastic country