A light could be shining for the Detroit Big Three as US lawmakers indicate a willingness to include the auto industry in its proposed USD700 billion bailout of financial institutions.
America's three automotive giants have been given a further step towards a lifeline when US lawmakers committed to pushing for their financial salvation. House Speaker Nancy Pelosi said Congress would also consider including Ford, General Motors and Chrysler in the USD700 billion financial industry bailout that is being talked about.
Top of the problem though, especially for GM, is that the companies are quickly running out of operating cash. The Bush administration may therefore yet save the American auto industry before January 2009. Loans of up to USD50 billion could be on the cards, half of which is for retooling and amendments are being drafted for. The other half is being eyed by the UAW for health care costs of retirees.
With any loan comes conditions and for the auto industry things are no different. Some of these conditions include the capping of executive salaries, bans on so-called golden parachutes and protections for taxpayers. Environmental housekeeping would also have to be strictly adhered to.