House speaker Nancy Pelosi was quoted by Autonews as saying: "This legislation is about offering Detroit and America a chance to get back on track." "It gets down to a question of tough love."
People are talking and rumors say that the Government's lack of immediate action could lead the U.S. automotive industry to collapse, a situation which would cost taxpayers more than the innitial loan.
The prospect of major U.S. manufacturers going bankrupt in a high tide of economic recession would be disastrous for the United States. The loan will bring the Detroit 3 closer to saving jobs and will enable them to save the U.S. auto industry, create a more competitive industry and maintain the American auto market stability.
"We believe the legislation developed in recent days is an effective and responsible approach to deal with troubled automakers and ensure the necessary restructuring occurs," said Dana Perino, White House Spokesman.
The provided aid will come at a price, with interest rates of 5 percent in the first five years and 9 percent afterwards. Moreover, the debts of Detroit's Three to the Government will have to be repayed before any other of the companies' previous financial obligations.
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