cars01010
09-22-2008, 01:32 PM
Bailout Boosts Automakers' $25-Billion Plan (http://www.magnetmail1.net/ls.cfm?r=106500973&sid=4857893&m=570145&u=NADA&s=http://www.freep.com/apps/pbcs.dll/article?AID=/20080921/BUSINESS01/809210382/1014/BUSINESS01)
WASHINGTON -- With just a few working days left for Congress this year, Wall Street's turmoil will overshadow the auto industry's bid for $25 billion in loans this week -- but it also may boost the automakers' case for first aid. "The developments on Wall Street are actually going to turn out helpful for the loan package," said Tom Vaughn, a partner in the Dykema law firm's automotive practice. Although the auto industry disowns most parallels between Wall Street aid and the loans -- mainly to avoid calling the $25 billion an industry bailout -- the comparison gives automakers some talking points:
Unlike Wall Street, automakers and parts suppliers are pledging to pay back the money they receive.
The size of the Wall Street rescue efforts -- which are climbing toward $1 trillion -- dwarf the $25 billion sought by automakers.
Although automakers and financial firms get blamed for causing their financial troubles, helping blue-collar factory workers carries more political cachet than riding to the rescue of bankers.
"It's going to be very hard for Congress to say no; we're not going to fund loans that help middle America, when they're willing to bail out loans and activity that most folks view as an East Coast activity," Vaughn said
WASHINGTON -- With just a few working days left for Congress this year, Wall Street's turmoil will overshadow the auto industry's bid for $25 billion in loans this week -- but it also may boost the automakers' case for first aid. "The developments on Wall Street are actually going to turn out helpful for the loan package," said Tom Vaughn, a partner in the Dykema law firm's automotive practice. Although the auto industry disowns most parallels between Wall Street aid and the loans -- mainly to avoid calling the $25 billion an industry bailout -- the comparison gives automakers some talking points:
Unlike Wall Street, automakers and parts suppliers are pledging to pay back the money they receive.
The size of the Wall Street rescue efforts -- which are climbing toward $1 trillion -- dwarf the $25 billion sought by automakers.
Although automakers and financial firms get blamed for causing their financial troubles, helping blue-collar factory workers carries more political cachet than riding to the rescue of bankers.
"It's going to be very hard for Congress to say no; we're not going to fund loans that help middle America, when they're willing to bail out loans and activity that most folks view as an East Coast activity," Vaughn said