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OEM News

Friday, 19 December 2008 03:10

Think Tank says Auto rescue is good news

The Economic Policy Institute (EPI) is an independent, nonprofit, nonpartisan research institute – or “think tank." EPI’s vice president Ross Eisenbrey said Dec. 19 on learning of the TARP bailout for Detroit Three, “The auto rescue announcement is good news.  Failure to provide the bridge loan would have cratered the economy, which is already in a deep hole.  The Big 3 automakers and the United Auto Workers have a tough road ahead, but with support from the Obama administration, they – and the communities they operate in -- can survive and prosper.”

Treasury Department announces new initiative under the Troubled Asset Relief Program (TARP)

Addressing a key request from the National Automobile Dealers Association (NADA), the U.S. Treasury Department announced a new program to increase the availability of auto loans on Dec. 15. NADA represents about 20,000 new-car and -truck dealers holding nearly 43,000 separate franchises, both domestic and international.

The White House announced Dec. 19 that it would extend $13.4 billion in loans from the Troubled Assets Relief Program to the Detroit Three auto makers, with another $4 billion likely available in February, citing the need to avoid "disorderly liquidation" during an already troubled economic period. The loans will be allocated from the $350 billion TARP being managed by the U.S. Treasury Department, subject to approval of bank capital applications.

Friday, 12 December 2008 07:05

The President MUST Act

Amid the greatest financial crisis of our time, President George W. Bush can show leadership and statesmanship by using a small percentage of the U.S. government's financial bailout money to keep the American automobile industry alive.

Wednesday, 10 December 2008 04:49

Democrats and White House Draft Deal for Congress

The White House, Democrats, and Automakers have finalized a deal to shunt $14 billion in emergency loans to the Detroit Three, however the plan negotiated by the White House is being opposed by a group of conservative Republicans led by Sen. John Ensign, R-Nev., who threatened to block the measure.

"Getting the loan is an important first piece of the puzzle, but will not be enough on its own," says Jeremy Anwyl, Edmunds.com's CEO . "There are other actions that need to be taken to preserve taxpayers' investment in the automotive industry."  Anwyl said he believes the government should provide some sort of stimulus to move leery consumers back to the marketplace.

Friday, 05 December 2008 03:32

Dear Mr. President:

On  December 4, 2008 the following letter was sent by Rep. Nancy Pelosi, Senator Harry Reid, Rep. Barney Frank and Senator Christopher J. Dodd to President Bush urging immediate action under EESA and TARP to prevent "severe impacts to our economy".

GM has requested a total of $18 B in liquidity loans from Congress. Their plan

* Reaffirms GM’s commitment to energy-saving vehicles and technologies
* Outlines the need for Federal bridge loans and line of credit
* Requests Federal board to oversee loans, assist with restructuring
* Aggressive plan details GM actions to support long-term success

General Motors Corp. submitted a plan on Dec 2 to use Federal bridge loans to create a leaner, more competitive company, one that is profitable and self-sustaining for the long term.

Countries face massive job losses unless they move quickly to provide financial assistance to their carmakers, Renault-Nissan head Carlos Ghosn warned Dec. 1.

General Motors CEO Rick Wagoner's refusal to consider bankruptcy as an option is substantiated by the results of a recent Morpace Omnibus Study.