WASHINGTON - US automakers could turn to
Congress after the November election to try to expedite $25
billion in government-backed loans, which Detroit manufacturers
consider crucial to reversing their steep downward spiral.
The prospect of an economic stimulus bill
moving before year’s end or in early January could provide an
opening for General Motors Corp., Ford Motor Co., and Chrysler
LLC and their allies on Capitol Hill to get the money moving
faster than is now expected as financial pressures grow more
acute, especially at GM.
"A stimulus package could be a vehicle for
further steps. I think people will take another look at whether
there is a need for more clarity," Alan Reuther, legislative
director for the United Auto Workers, said.
Auto lobbyists do not discount the
possibility of again working with sympathetic lawmakers on the
loan issue, but note the chances of a stimulus package clearing
the House of Representatives and Senate within the next few
months are uncertain.
Democratic leaders in the House pushed the
idea forcefully on Monday as a way to help stave off a recession
many fear is near. President George W. Bush has so far resisted
calls for a second stimulus plan.
A new Congress will be seated in early
January and a new president will be sworn in weeks later.
Democratic presidential candidate Barack
Obama, in Toledo, Ohio, where Chrysler has a plant, urged the
Bush administration on Monday to "fast track" the loans. They
cannot be issued until the Energy Department completes the
necessary regulatory framework and other hurdles are cleared.
But the sinking American auto industry is urgently seeking
certainty for its flow of capital as the global credit squeeze
chokes its mainline and financing operations as well as
suppliers and dealers. Weak sales fell further recently because
consumers could not obtain financing. And, GM was forced to beat
back bankruptcy speculation last week over mounting liquidity
concerns. - Reuters
