White House Asks Congress to Accelerate Auto-Loans
"We're open to ideas from Congress to accelerate funds they've already appropriated in the auto loan program -- as long as funding will continue to go to viable firms and with strong taxpayer protections," White House spokesman Tony Fratto was quoted as saying by Autonews.
General Motors, Chrysler and Ford reported extremely low October sales, with million of dollars loses and production cuts, all of them caused by the global recession. Beside all of these, analysts predicted that these three American car giants may experience even higher loses in the first months of 2009, with increasing possibility to see them going bankrupt.
"Without government assistance, we believe that GM's collapse would be inevitable, and that it would precipitate systemic risk that would be difficult to overcome for automakers, suppliers, retailers and sectors of the U.S. Economy," Deutsche Bank's Rod Lache told msnbc.
Barrack Obama's transition team already discussed with President Bush the possibility of introducing a second loan program, Autonews added, but no further details were provided. “It was a private meeting,” White House spokesman Tony Fratto said. "Obama asked for a second stimulus and to use existing measures to help the auto industry," a source close to talks told msnbc.
“The Bush administration has not dismissed outright the possibility of extending emergency assistance to the automakers,” Autonews added in the report.