Automakers Get $15 Billion

Not long ago Executives from major U.S car manufacturers were accused at the first congressional hearing for burning up to $2 billion a month. Now, the U.S. Congress finally agreed on giving a loan after countless hearings and debates.

They will provide billions of dollars for the U.S auto industry that is currently in ruins. The package they will send to president Bush to approve is between $15 billion and $17 billion, an amount insignificant related to the initial sum of $34 billion dollars that were requested. The sum needed by GM and Chrysler to survneeded to survive the new year is estimated at around $11 billion.

They hope that the financial aid will help them stay afloat until the new American president Barack Obama will replace bush at the White House on January 20. Giving some thought, it would probably seem that the loan is not going to make any major difference, considering the non-economical habits of jet traveling that some Executives of these brands seem to have.

The Senate and House of Representatives will vote on the deal, but the major U.S car manufacturers will have show how the loans will be used. If the current situation remains the same, it is predicted that by the end of January General Motors, Ford and other manufacturers will file for bankruptcy or they will end up being controlled by hedge funds.

But let's not forget that the U.S automotive industry has brought the economical black-hole upon itself by approving ruinous discounts and hugely subsided leasing rates.