Auto+Industry+Bailout

11/22/08 Democratic leaders ordered the United States ' Big Three automakers Friday to submit a detailed loan application to Congress so lawmakers can decide whether to give the beleaguered industry an emergency $25 billion lifeline. Dems demanded a detailed accounting by Dec. 2 of the companies' financial condition and short-term cash needs, as well as how they would achieve long-term viability. The Dems told the automakers to show how they would ensure that the government would be reimbursed and share in future profits, eliminate dividends and lavish executive pay packages, meet fuel-efficiency standards and deal with their health care and pension obligations to workers if they received the federal help. U.S. automakers are struggling to stay afloat heading into 2009 amid an economic meltdown, a precipitous drop in sales and a tight credit market. The three companies burned through nearly $18 billion in cash reserves during the last quarter and GM and Chrysler have said they could collapse in weeks. Detroit 's car makers employ nearly a quarter-million workers, and more than 730,000 other workers produce materials and parts that go into cars. If just one of the automakers should declare bankruptcy, some estimates put U.S. job losses next year as high as 2.5 million. Bush and congressional Republicans said lawmakers should have considered a bipartisan plan to let the automakers tap a separate $25 billion loan program for fuel-efficient cars for their short-term cash needs. "I think we all accept that they're in serious trouble. No one is happy about that. But what to do about it remains to be seen," McConnell said. Supporters of the bipartisan measure to temporarily divert the fuel-efficiency funds to cover the auto companies' operations are hopeful of winning support in December. Democratic leaders acknowledged Thursday that their favored approach, carving the $25 billion in loans from the $700 billion Wall Street bailout fund, lacked enough support in Congress, particularly after the auto executives' poor performance in high-profile appearances in congressional hearing rooms. But they were roundly criticized for traveling aboard corporate jets to seek billions in government aid and failing to assure lawmakers they would not need more money. Automakers have promised to submit the blueprint Democrats have demanded.
 * Auto Industry Bailout **