Automakers Denied Auto Loan

The auto industry is looking at some very trying times ahead, as Congress chooses not to vote for an auto loan that would help them out of the mess that they are in. The auto industry has been working for months to try and come up with a plan that Congress would support so that they could get an auto loan and keep from having to lay off employees. However, Congress has chosen not to support the auto makers at this time.

This is a huge blow for the auto making industry, and they are quick to point out that they have made numerous concessions to try and keep those that are employed in their jobs. Should one of the big three fall, they maintain, the country will be headed for a true depression. They have asked Congress for a $34 billion aid plan, but have been denied.

The big three are responsible for millions of jobs in our country, and without the auto loan that they have requested; the country could be looking at an even harder time of coming back from this recession. The automakers sent Congress plans on how to survive with the auto loan, and the next day Sen. Harry Reid told The Associated Press in an interview that they just didn’t “have the votes to do that now."

This means that in the next couple of months, unless something changes, without the auto loan at least one of the big three will be closing its doors, if not all three of them. They have made it very clear that without the assistance they are going to have to close and with it put millions out of work.



Back to  December 2008  Archives