Chrysler President Meets Congress for $25B Loan

In an effort to convince Congress members that the Detroit 3 urgently needs the $25 billion funding, Chrysler's President Jim Press today met senators but declined to reveal too many details regarding negotiations. This is the last attempt of the US-based automotive companies, after the much-debated campaign asking US citizens and employees to contact Congress members and urge them to approve the funding package.

It all started one week ago when General Motors sent a letter to approximately 29,000 employees, asking them to get in touch with senators and them to support the affected carmakers. “This level of economic devastation far exceeds the $25 billion of government support that our industry needs to bridge this current period. Today, I want you to take the time to contact your members of Congress to ask them to support America's domestic auto industry,” the letter read.

On the other hand, Chrysler tried a different strategy, publishing a video revealing a bunch of figures concerning the automotive industry and America's economy. No less than 4.5 million citizens are employed by US carmakers, the video said, with 13 billion dollars offered in pension benefits. “If those jobs go away, it would be equivalent to putting the entire populations of South Carolina, Kentucky or Louisiana out of work,” Chrysler stated in the video. “Almost a quarter million people pick up their paychecks from Chrysler, Ford and General Motors. That's a total payroll of $22.2 billion.”

General Motors also rolled out a video over the weekend, plus a separate new website which calls citizens to support its cause and contact legislators. “The credit crisis that is affecting us all is wounding the U.S. auto industry in many different ways. Carmakers can’t get loans to restructure and to produce new advanced technology vehicles. Suppliers and dealers can’t get loans for routine business, and customers can’t get loans for new cars,” GM explained on the newly-launched website.
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About the author: Bogdan Popa
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Bogdan keeps an eye on how technology is taking over the car world. His long-term goals are buying an 18-wheeler because he needs more space for his kid’s toys, and convincing Google and Apple that Android Auto and CarPlay deserve at least as much attention as their phones.
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