11/8/08

Who's on Third ?

Can Washington save the Big Three automakers?

With the Big Three US automakers teetering on the edge of insolvency, it appears Washington may finally be ready to come to Detroit’s rescue.Only hours after both General Motors and Ford Motor Co. announced large third-quarter losses — and stressed that they are both rapidly running out of cash — President-elect Barack Obama focused on the industry’s plight during his first news conference since Tuesday’s election.Full : http://tinyurl.com/6dw2ug

U.S. Carmakers Said to Seek $50 Billion in U.S. Loans

General Motors Corp., Ford Motor Co. and Chrysler LLC, strapped for cash as sales plunge, are seeking $50 billion in federal loans to help them weather the worst auto market in 25 years, a person familiar with the matter said.

The package would be $25 billion for health-care spending and $25 billion for general liquidity that could be delivered in different ways, including short-term borrowing from the Federal Reserve, said the person, who asked not to be identified because the plan isn’t public. In return, the companies would be willing to take steps such as granting stock warrants, the person said. Full : http://tinyurl.com/5zmtst