Car companies vie for government money

Calcutta News.Net
Friday 19th September, 2008

Detroit's car companies have been attempting to make a deal with the US Government for $25 billion in low-cost federal loans to see it through its cash crisis.

Requests for the money have led to tense moments for the car companies, their power brokers in Washington and the Big Three CEOs, who would like US$25 billion.

Congress actually authorized financial assistance in last year's energy bill, which required automakers to increase the car's average fuel economy by 40 percent, to 35 miles per gallon, by 2020.

But Congress never funded the $25 billion, which is what Detroit is desperately seeking before Congress adjourns on September 26th.

Detroit executives hope to receive some of the government largesse which has already been lavished on the likes of Bear Stearns, Fannie Mae and Freddie Mac.

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