Auto Loan Bailout

The auto industry as been looking for some help for some time now, as they are truly facing record lows in their sales this year. People just can’t get auto loans for the cars they want to buy, or they can’t afford the gas for the more expensive cars like SUV’s.

Detroit automakers have finally gotten some assistance however, in the form of a $25 billion federal loan package. However, depending on how things go with Congress’ billion dollar bailout package, the auto industry might still be in trouble.

Automakers say that without the auto loans to finance them and help them through the hard times, they are not going to be able to survive this economic downturn. Auto suppliers are also eligible for the loans, with President Bush signing the papers last Tuesday.

However, the industry needs the money now and it looks as though they might not be getting the money until next year. But with the government defeating the Wall Street bailout last Monday, there is much talk that the Detroit Three might have to close before it becomes a reality for them.

 

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