Thursday, September 18, 2008

$25 billion automobile package coming

The credit crisis roiling Wall Street makes the $25-billion (U.S.) loan package for U.S. auto makers even more critical than it was a month ago, says Ray Young, chief financial officer of General Motors Corp. [GM-N]

"It becomes a lot more important for the auto makers to get these loans to make sure we can continue funding investments in advanced technologies," Mr. Young told The Globe and Mail Wednesday as the Detroit Three sent a letter to Nancy Pelosi, Speaker of the U.S. House of Representatives, urging her to make sure the legislation is passed.

There was talk in some quarters of the auto industry and Wall Street yesterday that the U.S. government's bailouts of selected financial firms might cause Congress to balk at loan guarantees for the car companies.

Bill is already done. According to Pelosi, this bill will be added to the stopgap government funding bill next week.

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