Big 3 Automakers Begging for $34 billion; Congress Eyeing $15 billion

The prospect of getting a bridge loan to survive is looking positive for Ford Motor Company, General Motors Corp. and Chrysler LLC, even through the government is proceeding with extreme caution.

Last Thursday and Friday automakers showed up on Capitol Hill again – this time in full efficient vehicles rather than corporate jets – to plead for as much as $34 billion in money to help keep their businesses from buckling by year’s end.

GM chief Rick Wagoner said in testimony, "We made mistakes, which we're learning from."

Auto executives are desperate; thousands of jobs lay in the balance and Congress is still skeptical that the big three Detroit dealers, if given money, won’t come back later requesting more funds. (“Workers, Consumers to be Biggest Losers in Big Three Automakers’ Breakdown,” Nov. 21).

Since Thursday, automakers pleaded to the House Financial Services Committee to provide them with bridge loans totaling $34 billion to survive, as they provided plans that specified their intentions for the money.

Members of Congress are still split. Sen. Richard Shelby (R-Ala.) commented on the plans’ lack of seriousness and detail, saying, “If you made this presentation to get a bank loan, I suspect that any sensible banker would summarily reject your request.”

Senate Banking Committee Chairman Sen. Chris Dodd, (D-Conn.) said, “We need to act,” noting that letting the automakers fail would be like “playing Russian roulette with our entire economy.”