Auto Loan Industry Needs Help

The White House is all too aware of the financial problems that the different industries are having. Many, such as the housing industry, have literally seen the bottom drop out of their revenues between the lack of home sales and the increase in foreclosures. The auto industry is no different in that they have seen both car sales slump and those that have auto loans not paying them anymore.

Months ago, the auto industry came to the government and told them that they needed help in order to survive. They said that without some financial assistance they would be looking at closing their doors and leaving hundreds of thousands of workers without jobs.

Congress had agreed to the assistance, but then the mortgage industry tanked and the auto loans were forgotten. Now that they are in even worse times, the White House has decided to put them back on the front burner. On Tuesday, they said that they were open to considering any kinds of proposals from Congress that would help them out.

The funds have already been appropriated to the auto industry, now they just have to get the funds to them. They say that any money that has already been “appropriated in the auto loan program” needs to be accelerated. They want the money to go to “viable firms and with strong taxpayer protections.”

Congress is going to give the auto industry a $25 billion package of low interest auto loans to help them meet certain standards that have been put in place. These auto loans will help the auto industry meet fuel efficiency standards that have been set and must be adhered to.

A spokesperson for Barack Obama said that the President-elect had already been in talks to see how they might assist the auto industry, and had raised the issue with current President Bush when they met.




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