Democrat Barack Obama said on Tuesday that as president he would demand that up to $25 billion in government loans targeted for distressed U.S. automakers be distributed quickly.
Obama told reporters that General Motors Corp, Ford Motor Co and Chrysler LLC find themselves in a unique financial situation, having been hard hit by rising gasoline prices this year and the global credit crunch.
While much of Washington’s attention this past weekend focused on dealing with the crisis in the financial markets, Congress also made a move that could benefit much of Michigan.
A huge $634 billion federal spending bill that cleared the Senate on Saturday includes a $25 billion line of credit for U.S. automakers.
The deal will allow the Energy Department to provide 25-year loans at an expected interest rate of 5 percent to General Motors Corp., Ford Motor Co. and Chrysler LLC. The loans will provide the capital that the companies need to push ahead with development of gas-electric vehicles, more fuel-efficient engines and plug-in electric cars.
WASHINGTON — Loans for automakers and parts suppliers from a $25-billion pool expected to pass Congress this week might not reach the industry for six to 18 months, the U.S. Department of Energy said Thursday.
That timing goes against the wishes of Michigan lawmakers, who had hoped to see loans begin flowing by the end of this year.
Detroit automakers are facing a cash crunch that is expected to last through 2010, and lawmakers added requirements to the loan program this week to speed the process of handing out funds.
The auto loan package before Congress could save Detroit’s automakers billions of dollars and speed their ability to refit factories for hybrids and other fuel-saving models that customers want and regulators demand.
With just two weeks left before Congress calls it quits before the election, automakers and Michigan lawmakers worked Thursday on ways to broaden the $25-billion loan package and win approval from President George W. Bush.
Automakers have support of Democrats and some Republicans in both chambers, but the Bush administration has yet to signal its approval, and environmental groups issued their first organized opposition to the plan Thursday.
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Here are some Auto Title Loan tips:
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