US automakers seek gov't help

Bloomberg

The package would be $25 billion for health-care spending and $25 billion for general liquidity that could be delivered in different ways, including short-term borrowing from the Federal Reserve, said the person, who asked not to be identified. In return, the companies would be willing to take steps such as granting stock warrants, the person said.

The automakers should receive “additional help” from President George W. Bush's administration, Senate Majority Leader Harry Reid said after meeting with their chief executive officers in Washington. Congress approved a $25 billion loan program in September to help build fuel-efficient vehicles.

The three companies, their unions and legislative allies are hunting for aid after a combined $28.6 billion in combined first-half losses. New vehicles sold at a seasonally adjusted annual rate of 10.6 million in October, the lowest since 1983.

The Bush administration should use its existing authority to provide the help, Reid said Thursday in a statement, without being specific as to the amount. Congress will also continue exploring ways to aid the automakers, the Nevada Democrat said.

The UAW said Nov. 5 it backed $25 billion in loans for automakers' health-care costs and other aid for “immediate liquidity.”

GM CEO Rick Wagoner, Ford's Alan Mulally, Chrysler's Robert Nardelli and United Auto Workers President Ronald Gettelfinger also met Thursday with House Speaker Nancy Pelosi.