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Automakers seek more help from Congress

By Ken Thomas ASSOCIATED PRESS | Friday, November 7, 2008

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The Big Three Detroit automakers appealed to congressional leaders Thursday for $25 billion more in federal loans, low-interest emergency borrowing and a share of the Wall Street bailout to help rescue an ailing industry battered by the economic crisis.

The talks with House Speaker Nancy Pelosi, California Democrat, and Senate Majority Leader Harry Reid, Nevada Democrat, came as General Motors Corp. and Ford Motor Co. were poised to announce billions more in losses and further job cuts Friday, and as GM's president for North America said the next 100 days would be critical for his company and the industry.

GM, Ford and Chrysler LLC pledged to work with the leaders "to ensure immediate and necessary funding to keep the auto industry viable and its transformation on track during this critical time," according to a GM statement.

Mrs. Pelosi told reporters at the start of the meeting that the discussions would focus on "how we can work together to go forward to ensure the viability of that important industry, looking out for the taxpayer and looking out for the worker."

Later in the day she said: "It is essential that we preserve our manufacturing and technology base in this country. Today, the Democratic leadership discussed how to protect hundreds of thousands of workers and retirees, safeguard the interests of American taxpayers, and use cutting-edge technology to transform blue-collar jobs to green-collar jobs for generations to come."

GM said the additional federal support would allow "a competitive" auto industry "to contribute to our nation's economic revival." The executives, who were joined by the president of the United Auto Workers union, declined comment to reporters between the private meetings.

They sought an additional $25 billion in federal loans for future health care payments for retirees. They also want lawmakers' help in winning access to the $700 billion financial bailout being run by the Treasury Department and to low-rate emergency borrowing from the Federal Reserve's discount window, used in normal times by banks.

The loans would help the companies make required payments to health care trust funds that were created as part of a 2007 labor deal.

Last month, Congress approved $25 billion in low-interest loans for domestic automakers and suppliers to retool plants to build fuel-efficient vehicles. But congressional allies of the industry have said the money will not be available quickly enough to help.

Rep. John D. Dingell, Michigan Democrat and longtime advocate for the auto industry, said the meeting was productive but did not address the specifics of the industry's request.