Spring Break
Automakers plead with Congress; votes lacking
AP
Issue date: 12/4/08 Section: News
"There's talk going there's around now that the Bush White House may ask for" the second $350 billion installment of the $700 billion financial industry rescue fund, Reid said.
But if Bush's team doesn't act, he said, "I think that we are probably going to have to try to do something" in Congress.
Reid said he'd rely on Sen. Chris Dodd, D-Conn., the Banking Committee chairman, to determine what kind of legislation would be appropriate.
The autoworkers' concessions are "a step in the right direction," he said.
"I think it's too bad that negotiated contracts between labor and management are going to have to be changed. But it's obvious to everyone - as strong of a union guy as I am - it's obvious that there has to be some changes made," Reid said.
Ahead of Thursday's televised hearings, GM's president and chief operating officer, Fritz Henderson, met with congressional aides and said bankruptcy for his company would further erode consumer confidence. About 25 auto dealers also combed through House and Senate office buildings, lobbying for the bailout package.
General Motors Corp., Chrysler LLC and Ford Motor Co. submitted three separate survival plans to Congress this week after flunking their first attempt to persuade lawmakers to throw them a lifeline.
GM and Chrysler said they needed an immediate infusion of government cash to last until New Year's, and both said they could drag the entire industry down if they fail. Ford wants a $9 billion "standby line of credit" in case a competitor fails.
Chrysler said it needed $7 billion by year's end to keep operating. GM asked for an immediate $4 billion as the first installment of a $12 billion loan, plus a $6 billion line of credit to use if conditions worsen.
Ford's chief executive, Alan Mulally, and GM's chief executive, Rick Wagoner, said they would work for $1 a year if each company accepted government loans. The carmakers also have offered to cancel bonuses and merit raises. Chrysler said its chief executive has cut his annual pay to $1.
But if Bush's team doesn't act, he said, "I think that we are probably going to have to try to do something" in Congress.
Reid said he'd rely on Sen. Chris Dodd, D-Conn., the Banking Committee chairman, to determine what kind of legislation would be appropriate.
The autoworkers' concessions are "a step in the right direction," he said.
"I think it's too bad that negotiated contracts between labor and management are going to have to be changed. But it's obvious to everyone - as strong of a union guy as I am - it's obvious that there has to be some changes made," Reid said.
Ahead of Thursday's televised hearings, GM's president and chief operating officer, Fritz Henderson, met with congressional aides and said bankruptcy for his company would further erode consumer confidence. About 25 auto dealers also combed through House and Senate office buildings, lobbying for the bailout package.
General Motors Corp., Chrysler LLC and Ford Motor Co. submitted three separate survival plans to Congress this week after flunking their first attempt to persuade lawmakers to throw them a lifeline.
GM and Chrysler said they needed an immediate infusion of government cash to last until New Year's, and both said they could drag the entire industry down if they fail. Ford wants a $9 billion "standby line of credit" in case a competitor fails.
Chrysler said it needed $7 billion by year's end to keep operating. GM asked for an immediate $4 billion as the first installment of a $12 billion loan, plus a $6 billion line of credit to use if conditions worsen.
Ford's chief executive, Alan Mulally, and GM's chief executive, Rick Wagoner, said they would work for $1 a year if each company accepted government loans. The carmakers also have offered to cancel bonuses and merit raises. Chrysler said its chief executive has cut his annual pay to $1.
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