Automakers Make Their Case for Federal Help

[Idealism]

Source: New York Times

WASHINGTON — The heads of Detroit’s Big Three automakers and the United Auto Workers union testified Tuesday before a Senate committee that the domestic auto industry could face collapse without an emergency infusion of federal funds.

And at least one automaker offered information that its liquidity problem was worse than it had said previously.

The remarks prepared for the Senate Banking Committee were part of an appeal by the three chief executives, Rick Wagoner of General Motors, Alan Mulally of Ford and Robert Nardelli of Chrysler, to get $25 billion in loans to keep them operating.

In their comments, the executives said the need for help stemmed from the current financial turmoil, and not from poor management. And they pointed out the danger to the American economy of a collapsing auto industry.

“We are asking for assistance for one reason,” Mr. Nardelli said, “to address the devastating automotive industry recession caused by our nations’ financial meltdown, and the current lack of consumer credit, which has resulted in the critical lack of liquidity within our industry”


Read more: http://www.nytimes.com/2008/11/19/business/19auto.html?_r=1&hp