Automakers pitch Congress anew on rescue

Published: Thursday, Dec. 4, 2008 11:29 a.m. MST
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The Big Three are struggling to stay afloat during the longest economic downturn in at least a quarter century, a steep decline in sales and a tight credit market. The three burned through nearly $18 billion in cash reserves during the last quarter.

Chrysler said it needed $7 billion by year's end to keep operating. GM asked for an immediate $4 billion as the first installment of a $12 billion loan, plus a $6 billion line of credit to use if economic conditions deteriorate. Ford requested a $9 billion "standby line of credit" in case one of its Detroit competitors fails.

The bailout remains unpopular with the public. Sixty-one percent oppose providing the auto companies with billions in federal assistance, according to a CNN-Opinion Research Corp. poll released on Wednesday. Fifty-three percent said it would not help the country's economy.

Associated Press writers Julie Hirschfeld Davis, Erica Werner and Jennifer Loven in Washington, Kimberly S. Johnson in Detroit, and Joe Milicia in Cleveland contributed to this report.

Recent comments

This is a tough one! The Big 3 have mismanaged their companies for...

BG | Dec. 4, 2008 at 10:16 p.m.

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Sorry about your Geo Metro | Dec. 4, 2008 at 8:16 p.m.

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Image
Win McNamee, Getty Images

Richard Wagoner Jr., Chairman and CEO of General Motors, left, arrives in a prototype electric vehicle for a Senate hearing with Rep. Sander Levin (D-MI) Thursday in Washington, D.C. Top executives from the three major U.S. automakers are scheduled to appear before members of the Senate today to discuss proposed bailout legislation for their industry.

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