Bankruptcy

25 Billion For US AutoMakers, Even Foreign Ones

By J. Michael McBride

Amid all of the other news of the day, the bailout that did not pass, at least today, and the markets that were expecting passage of the bill which fell sharply (DJIA falls by 777 points), there is also news of a loan guarantee package for US automakers. It would evidently include not only Ford and GM and Chrysler, but also foreign firms that had US plants for over 20 years. That would include Honda and Nissan. On one hand, this bill could be called creeping social-ism; on the other, it is probably much needed relief for an industry which actually makes a physical product, unlike some financial firms which trade in “financial products” which were unheard of ten years ago.

“The US Senate Saturday approved 25 billion dollars in loan guarantees for the financially strapped US auto industry, intended to spark a wave of automotive innovation.

The loan guarantees were included in a continuing resolution that included funding for the US government and the wars in Iraq and Afghanistan.

President George W. Bush has indicated that he intends to sign the bill. …

"We're very pleased Congress has chosen to act at this critical time," said Greg Martin, director of communications for General Motors Corp's Washington office.

GM had been subject of much speculation that it could be forced into bankruptcy.”

Here is a link to this article:
http://www.breitbart.com/article.php?id=080928164938.dtc44u1c&show_article=1&lst=1

Michael

Full post as published by Texas Lawyer Blog on September 29, 2008 (boomark / email).