This is an article appearing in the New York Times on October 22, 2008, written by Nick Bunkley. I couldn't get the link to work properly.
I love the last paragraph. My interpretation? "We got caught with our pants down on car lots overflowing with fuel inefficient vehicles. Now the taxpayer should fund our research, design, and manufacturing of fuel-efficient automobiles!"
DETROIT — Michigan’s Congressional delegation is urging the Treasury secretary and the Federal Reserve chairman to use their authority as part of the $700 billion bailout package to help more consumers obtain car loans, warning that the tightened credit markets were endangering millions of jobs.
The effort, led by Representatives John D. Dingell, a Democrat, and Fred Upton, a Republican, comes amid plunging vehicle sales as auto lenders struggle to find financing.
In addition, two of Detroit’s automakers, General Motors and Chrysler, are considering a merger to combine their cash reserves and cut costs.
“In this current economic environment, it is imperative that the government ensures that liquidity is restored so that the U.S. auto industry is able to function until normalcy is restored to credit markets,” the lawmakers say in a draft of a letter to the Treasury secretary, Henry M. Paulson Jr., and the Fed chairman, Ben S. Bernanke, that was obtained by The New York Times.
Automakers say that a lack of financing has compounded a weakened economy and kept consumers out of showrooms. The industry says that more than 90 percent of new-vehicle purchases are financed.
As of late Wednesday, all but three of Michigan’s 17-member delegation had signed the letter, and the others are expected to join as well, according to a person involved in the effort, who spoke on the condition of anonymity because the letter was not intended to become public until Thursday.
“It’s time for the Bush administration to finally step up and aid the auto industry,” Representative Joe Knollenberg, a Republican, said in a statement. “I spoke to Secretary Paulson personally about using these new powers to restore liquidity in the automotive sector. Now is the time for action. The domestic auto industry can’t wait any longer.”
The letter says that one in 10 jobs in the United States depends on the auto industry, asserting that “there is no single segment of America’s economy that is more critical to the financial well-being of millions of Americans.”
Vehicle sales in the United States fell 26.6 percent in September, a 15-year low.
Early statistics show that sales have been at least as poor in October. One analyst predicted that sales this month would reach the lowest level since 1983.
G.M. began running ads last week assuring consumers that they could still receive credit after its financing arm, the GMAC, said it would offer loans only to buyers with credit scores of at least 700.
The president of the California New Car Dealers Association, Peter K. Welch, warned that the move by GMAC, which handles financing for nearly half of G.M. sales, would force some dealerships out of business.
Congress approved $25 billion last month for government-backed loans to help automakers build more fuel-efficient vehicles.
The automakers, with the support of Michigan lawmakers, are pressing for quicker access to the loans, along with more money later, given that demand for vehicles with better fuel efficiency has soared since the loan program was created as part of an energy bill passed in December.
I love the last paragraph. My interpretation? "We got caught with our pants down on car lots overflowing with fuel inefficient vehicles. Now the taxpayer should fund our research, design, and manufacturing of fuel-efficient automobiles!"
DETROIT — Michigan’s Congressional delegation is urging the Treasury secretary and the Federal Reserve chairman to use their authority as part of the $700 billion bailout package to help more consumers obtain car loans, warning that the tightened credit markets were endangering millions of jobs.
The effort, led by Representatives John D. Dingell, a Democrat, and Fred Upton, a Republican, comes amid plunging vehicle sales as auto lenders struggle to find financing.
In addition, two of Detroit’s automakers, General Motors and Chrysler, are considering a merger to combine their cash reserves and cut costs.
“In this current economic environment, it is imperative that the government ensures that liquidity is restored so that the U.S. auto industry is able to function until normalcy is restored to credit markets,” the lawmakers say in a draft of a letter to the Treasury secretary, Henry M. Paulson Jr., and the Fed chairman, Ben S. Bernanke, that was obtained by The New York Times.
Automakers say that a lack of financing has compounded a weakened economy and kept consumers out of showrooms. The industry says that more than 90 percent of new-vehicle purchases are financed.
As of late Wednesday, all but three of Michigan’s 17-member delegation had signed the letter, and the others are expected to join as well, according to a person involved in the effort, who spoke on the condition of anonymity because the letter was not intended to become public until Thursday.
“It’s time for the Bush administration to finally step up and aid the auto industry,” Representative Joe Knollenberg, a Republican, said in a statement. “I spoke to Secretary Paulson personally about using these new powers to restore liquidity in the automotive sector. Now is the time for action. The domestic auto industry can’t wait any longer.”
The letter says that one in 10 jobs in the United States depends on the auto industry, asserting that “there is no single segment of America’s economy that is more critical to the financial well-being of millions of Americans.”
Vehicle sales in the United States fell 26.6 percent in September, a 15-year low.
Early statistics show that sales have been at least as poor in October. One analyst predicted that sales this month would reach the lowest level since 1983.
G.M. began running ads last week assuring consumers that they could still receive credit after its financing arm, the GMAC, said it would offer loans only to buyers with credit scores of at least 700.
The president of the California New Car Dealers Association, Peter K. Welch, warned that the move by GMAC, which handles financing for nearly half of G.M. sales, would force some dealerships out of business.
Congress approved $25 billion last month for government-backed loans to help automakers build more fuel-efficient vehicles.
The automakers, with the support of Michigan lawmakers, are pressing for quicker access to the loans, along with more money later, given that demand for vehicles with better fuel efficiency has soared since the loan program was created as part of an energy bill passed in December.
