Beneath the shadow of the stimulus plan, the auto-bailout for Big Three motoring continues to gain momentum and cost. With an initial price-tag of $17.4B, Detroit has asked the government for further funding as they fight to stave off bankruptcy.
While financial experts project the final figure will fall (for want of a better word) between $75B and $125B, most can’t see the final cost being anywhere less than $100B. One cause for this frightening prediction is the inclusion of Ford, as they look set to follow GM and Chrysler in a plea for emergency funding to go along with an $11B retooling loan they have already applied for.
Many experts are also divided on whether or not the pledges made by GM and Chrysler will suffice in their quest to survive, with strategies ranging from job cuts to model and capacity reductions in the mix. Washington continues to monitor each company’s progress as they try to draw further loans and funding, as well as ensuring that any bail-out funds fall in with pledges towards more energy efficient operations and cars.
However, it seems more and more apparent that lawmakers are finding themselves stuck between a rock and a hard place as the debate between saving car companies and changing their ways rages on.
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