Agreement reached on auto rescue plan
Congress and the White House worked together through the night to get a proposal together for a rescue of the auto industry. Steve Chiotakis gives us a quick update with the White House's bottom line.
An assembly line of Ford's 2009 F-150 pickups at the Kansas City Ford Assembly plant in Claycomo, Mo. (Larry W. Smith/Getty Images)
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Steve Chiotakis: The rescue is on for the auto industry. Congressional Democrats worked into the night getting a proposal together with the White House. Some Republicans have been concerned about the power -- or lack of power -- of the supposed car czar. And just how much of the $15 billion in loans each automaker will get in the economic fallout.
The White House says the bottom line is "make it work" or pay:
Joel Kaplan: This is a bridge to either fundamental restructuring or bankruptcy. They either have a long-term plan that's viable, or we get our money back. And if we call our money back, which is required under this bill, then those firms are not going to be able to survive.
Joel Kaplan is White House Deputy Chief of Staff for policy.
Now we're hearing this morning of the Big Three, Ford will not seek the money. Just a line of credit from the package -- at least in the short term. Ford stock is on the rise. So is GM. And they have some company this morning.
Comments
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12/10/2008
The bailout won't work. I have a better idea: a stimulus program wherein the government gives every American enough money to buy any GM, Ford, or Chrysler car of his or her own choosing. This will revive the American car industry.
From New Albany, IN, 12/10/2008
Has anyone thought of a auto stimulus incentive involving a tax credit for any new vehicle purchase to get sales moving again?
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