GM, Ford Should Receive $25 Billion in Plant Aid, Dingell Says

[Purveyor]

(Bloomberg) -- General Motors Corp., Ford Motor Co. and Chrysler LLC should have access by January to $25 billion in government loans to convert factories to build alternative-fuel vehicles, a Michigan lawmaker told U.S. regulators.

The loans were authorized in last year's energy bill, and rules to free up the funding are supposed to be written within a year of its December passage, Representative John Dingell said yesterday in a letter to U.S. Department of Energy Secretary Samuel Bodman.

``It is essential for the department to undertake this effort with urgency,'' wrote Dingell, a Democrat and chairman of the House Energy and Commerce Committee. ``Providing the domestic automobile industry with targeted and timely assistance will help stimulate the entire economy.''

Dingell, 82, said he's trying to get the funding secured before Congress adjourns for the year. His push follows GM's Aug. 1 report of a $15.5 billion quarterly loss and Ford's $8.7 billion deficit from a week earlier.

GM, Ford and Chrysler are closing factories that produce pickups and sport-utility vehicles being shunned by U.S. consumers as gasoline hovers near $4 per gallon. They are also speeding development of models such as gasoline-electric hybrids, fuel-cell vehicles and electric cars that use less or no fossil fuel.

MORE...

BLOOMBERG: http://www.bloomberg.com/apps/news?pid=20601087&sid=aviz2sm08FDg&refer=home

[laylah]

1. Well hell,

maybe if I incorporate myself, I could get about $75k in aid that I don't (in reality) have to repay. Corporate pigs and freakin' lousy government! Bail out the big guy :puke:

[Tempest]

2. With all due respect, Mr. Dingell

Kiss my ass!

[freesqueeze]

3. "loans" sounds reasonable to me

this would be money that is paid back with interest. But why couldn't the go to private sources for that? When the term "funding" is used it starts to sound like a give away.

The Aztec alone soured me to GM.

[saigon68]

11. That was a piece of crap

It looked stoopid

http://www.autoblog.com/2008/01/18/2007-big-year-for-pontiac-aztek-25-sold/

According to a published report on autoblog.com; January 22, 2008; 25 Pontiac Dealerships across the U.S. sold a total of 25 Pontiac Azteks in 2007. Two years after the Pontiac Aztek went out of production, the 25 vehicles that were sold, were brand new from the dealership

[TheCowsCameHome]

14. It looked like it was built from badly folded blueprints.

Gawd, what a weird looking machine that was.

[HelenWheels]

4. Yes, lets give a welfare handout to these irresponsible companies

They greedily suck up the profits and don't reinvest in their companies futures because they know the taxpayers will bail them out. I know we need to get them up and running again but there should be real rules attached to this bail out money. Like limits on pay, CEO's should only be allowed to make a certain percentage more then the lowest paid workers, they should have real oversight as to reinvesting in their companies, limits should be made on payouts to share holders - they should be last instead of first.

[spanone]

5. why don't we just give corporate america blank checks from the treasury?

:sarcasm:

[TornadoTN]

6. Dingells on the right path, but "funding" GM and Ford is asking for trouble

While Dingell is correct in his effort to secure funding for the conversion of plants to alternative energy vehicle platforms, it's sorely misplaced in its current form.

Giving that money to Ford and GM, after years of mismanagement and pissing on their workers to push up top management profits, shouldn't be trusted to spend this money wisely. Who knows where the money would be spent and whether this would spur them to actually do more than give a giggle and some fake face time to alternative fuels? They missed the boat years ago when they had the opportunity to do this instead of rush to make more SUV's when the signs were on the horizon of a coming economic and environmental crises.

I'd want government oversight of the funds and the programs that Ford and GM would put into place. Clear, written policies of what the scope of the project entails and what the business plan and model is for the resulting products.

[harun]

12. Given their track record I don't think the loans to them is a good investment

for the government to be making.

[RB TexLa]

7. Why don't we just let them fail and then the people who replace them can raise their own funds

to convert the plants?

[Yavin4]

8. If, in 2000, Congress Had Raised CAFE Standards Like Gore Campaigned for

The American auto market would be doing fine today.

[isentropic]

9. With Democrats like him, who needs Repuglicans?

:eyes:

[Bozita]

10. $25 billion? I smell exec bonuses, stock options, and golden parachutes trimmed with diamonds.

I really feel for the workers.

[TheCowsCameHome]

13. ...so they can build more gas guzzlers that nobody wants anymore.

Yeah, right..........

[Karenina]

15. The guy is 82?

"What's good for GM is good for America is" BURNED into his mind,

[librechik]

16. How about spreading some of that money to the other states too, Dingell?