The
Freep's Justin Hyde and Todd Spangler advise us to "call it the deal Detroit can't refuse" -- a bailout pact that will give General Motors and Chrysler the $14 billion
they say they need to survive through March 31 in return for very close scrutiny and perhaps even a majority stake in either of the automakers. Ford has said it will not take a loan but is asking for
a $9-billion line of credit.
Michigan lawmakers say that a draft proposal from congressional Democrats needs tweaks, but they are hopeful a bill will pass Congress in the next few
days. The draft plan creates an industry overseer, which could be more than one person, who must lend money to troubled automakers immediately. Michigan Sen. Carl Levin says loans could flow in just
days after a bill passes.
Ad Age's
Jean Halliday reports that any automaker getting a loan will have to get the
car czar's approval for any expenditure or transaction over $25 million, which would include large media buys. She also says that attorney Kenneth Feinberg, who ran the federal Sept. 11
victims' fund, is a leading contender for the post.
White House spokeswoman Dana Perino said Monday night that the administration was reviewing the bill, adding that for loans
beyond the $15 billion, "taxpayers should only assist automakers executing a credible plan for long-term viability."
advertisement
advertisement
;
Read the whole story at Detroit Free-Press, Ad Age »