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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: desert dweller who wrote (39696)	9/8/2008 9:39:47 PM
From: TobagoJack	Respond to of 218083

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To: desert dweller who wrote (39696)	9/9/2008 8:42:29 AM
From: elmatador	Respond to of 218083

Big 3 help likely Bankruptcy risks to fall with $50 billion in loans General Motors Corp., Ford Motor Co. and Chrysler LLC's bankruptcy risk will fall as the likelihood increases that they will get as much as $50 billion in U.S. government loans, a JPMorgan Chase & Co. analyst said. The loans, intended to assist the shift to more fuel-efficient vehicles, will gain political support because of the importance of Michigan, Ohio and Pennsylvania as swing states in the U.S. presidential election, Himanshu Patel, the New York-based analyst, wrote in a report Monday. "We suspect the spirit behind supporting funding of the advanced automobile technology loans is to provide a helping hand to financially strapped Detroit," he said. "As such, if the bill is eventually funded, the potential dollars involved could materially reduce near-term bankruptcy risk" at some or all of the U.S.-based automakers. Email to a friend Printer friendly Font:****The companies have made the loans their top lobbying priority as Congress returns for a shortened fall session ahead of the presidential election. The automakers and their suppliers are trying to get the initial funding appropriated so it's available before the new Congress and president take office. All three automakers have said they have enough money to continue operating and are not considering bankruptcy. Auburn Hills, Mich.-based Chrysler, which is owned by Cerberus Capital Management LP, doesn't report detailed financial results. "I absolutely don't think it's a bailout," Ford chief executive officer Alan Mulally told reporters after a speech in Dearborn. "We haven't decided the exact nature of it but I think it's going to be a loan at lower interest rates. We're going to have to pay it back." GM spokesman Greg Martin said the funding is "the highest priority for the industry right now. These loans will turbocharge advanced technology plans underway for the market. It's not a bailout for us." Congress needs to appropriate about $3.75 billion to cover the upfront cost of the initial $25 billion in auto-industry government loans, according to a July 25 estimate in a letter to House and Senate leaders. The letter was sent by 71 members of Congress urging support on the issue. The automakers also want Congress to add $25 billion in new loans during subsequent years and the industry is seeking fewer restrictions on how the funding is used. Senator John McCain, the Republican presidential candidate, and Democratic challenger Senator Barack Obama both have said they support the appropriation. White House spokeswoman Dana Perino said last week that the administration is talking to Congress and the auto industry about the issue.