Friday, November 21, 2008

Report : U.S. Congress temporarily shut the door to Detroit's Big 3 automakers request for a $25 billion loan

The subject says it all. After the negotiations between America's Big 3 and the U.S Congress, the Congress decided to temporarily stop the negotiations until GM,Ford and Chrysler "get their act together" and show the Congress what they're planning. So it's like saying "show us a plan and we'll show you the money" !

In fact, Californian Democrat Speaker, Nancy Pelosi said at the Congress meeting "Until we can see a plan where the auto industry is held accountable, and a plan for viability on how they go into the future, we cannot show them the money". Also, Senate Majority Leader Harry Reid said: "We're prepared to come back into session the week of December 8 to help the auto industry, but only if they present a viable plan".

Ford's CEO, Alan Mulally had to speak something out. So he said "Ford welcomes the opportunity to provide our plan to Congress. We have a great plan that will continue Ford's transformation into a lean, profitable company that delivers the safe, fuel-efficient, high-quality new products that our customers want and value."

And GM's Rick Wagoner said "we will continue to work vigorously with the Congress and the administration during the next few weeks to address their concerns and to arrive at a solution that provides immediate aid to the auto industry."

As for Chysler LLC's CEO, Robert Nardelli, he said "Chrysler LLC appreciated the opportunity to appear before Congress the past two days and looks forward to reviewing its plan in detail, in the near future. The Company is prepared to meet the "accountability and viability" criteria laid out today and is ready to provide its plans for returning Chrysler to profitability, as we move beyond this unprecedented financial crisis. Chrysler is changing and will continue to change."

So hopefully, Congress and big three will meet and negotiate once again at December the 8th. So stay tuned here, and we'll tell you whether the American auto industry will die or will hopefully carry on.

Source: [CNBC]

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