Uncle Sugar to Bail Out Auto Companies
The White House and Congress have agreed in to advance a $15 billion loan to the auto companies:
(CBS/AP) After weeks of tense discussions with the heads of the U.S. auto industry, Democratic Congressional leaders have reached an agreement that may just clear the way for the Big Three to get the money they need to survive … for now.
CBS News correspondent Kimberly Dozier reports that significant progress came Friday night, when Democrats from both the House and Senate agreed to bail out the struggling General Motors, Chrysler and Ford with federal funds.
Several officials say the White House and congressional Democrats have agreed on $15 billion in loans, which is less than half of what the car chiefs were seeking.
They say the breakthrough came after House Speaker Nancy Pelosi bowed to a demand by President Bush that any aid come from a fund that had been intended to help Detroit produce more fuel-efficient cars.
By my reckoning and based on the numbers the auto companies have provided that will give them between two and three months.
What will have changed in that time to transform failing companies with little hope of survival into viable ones? Is this just kicking the can down the road and delaying the inevitable?