Detroit 3 Loan Blocked by the US Senate
Obviously, this can be only bad news for the car manufacturers involved in the negotiations as a potential delay of the loan package could get things even worse than they currently are. For instance, members of the Detroit 3, and include here Chrysler, General Motors and Ford, have demonstrated that government aid is their only chance to survive, otherwise bankruptcy remains their only option. In case that happens, millions of Americans may lose their jobs, the three car giants said in a past campaign.
We are deeply disappointed that agreement could not be reached tonight in the Senate despite the best bipartisan efforts. We will assess all of our options to continue our restructuring and to obtain the means to weather the current economic crisis,” General Motors was quoted as saying by the same source.
Members of the Senate did not mention a clear reason for the negotiations' failure but Senate Banking Chairman Christopher Dodd, D-Conn., explained that it may be related to political matters.
On the other hand, the Detroit 3 are continuously urging the lawmakers to approve the funds because “they may run out of cash very soon,” as GM official recently said. Even worse, General Motors could get closer to bankruptcy which could represent a disaster for the American economy, the company explained in October.