Detroit Three say they need billions in federal loans
DETROIT — A plea by Detroit automakers for as much as $50 billion in federal, low-interest loans could be crucial to their survival, experts say. Faced with more stringent fuel-economy requirements, an inability to borrow money in the strained capital markets and losses running into the billions every month, the Detroit Three are in a precarious state.
“It’s certainly an issue that’s front and center for us,” General Motors Corp. spokesman Greg Martin said. Federal support for his industry is “clearly critical to the U.S. economy,” he added. Automakers are looking for the money to come quickly, even before the Nov. 4 presidential election. Without the loans, GM and Chrysler are burning through cash so quickly they could go bankrupt within nine months, said Sean McAlinden, chief economist at the Center for Automotive Research in Ann Arbor.