CRISIS ROOM GM
"It seemed like a lot when we first started pushing $25bn," says Democratic Sen. Debbie Stabenow of Michigan, one of the bill's sponsors. "Suddenly, it seems so small."
REVOLVING LOANS AND "GOVERNMENT BAILOUT LOANS"
chapter 11 forecast
BANKRUPTCY CHAPTER 11 DEADLINE GM 2009 / Q3
GM could start to run out of cash by the second half of 2009, a precursor to declaring bankruptcy
With Congress preoccupied with the massive, $700 billion bailout plan for the financial industry, General Motors (GM), Ford (F), and Chrysler have finally secured Part One of their own federal rescue plan. A bill set to be passed by Congress and signed by President Bush as early as this weekend — separate from the controversial Wall Street bailout plan — includes $25 billion in loans for the beleaguered Detroit automakers and several of their suppliers. "It seemed like a lot when we first started pushing this," says Democratic Sen. Debbie Stabenow of Michigan, one of the bill's sponsors. "Suddenly, it seems so small."
But please don't call it a "bailout" — Detroit is too proud for that
There's more aid coming. This year's $25 billion is just a down payment. The automakers now plan to ask the government for another $25 billion in loans next year. It's just spare change, after all.