Detroit Gets More Time to Plead Case for Bailout

Congress May Hold Additional Hearings in Coming Weeks

By Published on .

DETROIT (AdAge.com) -- Detroit's three carmakers are getting a second chance to make their cases for loans from the federal government, which, if necessary, will hold additional committee hearings the week of Dec. 2.
'It's all about viability and accountability,' said Speaker of the House Nancy Pelosi, D-Calif., of the plans Congress needs to get from Detroit to fashion a deal.
'It's all about viability and accountability,' said Speaker of the House Nancy Pelosi, D-Calif., of the plans Congress needs to get from Detroit to fashion a deal. Credit: Newscom

Democratic House leaders held a press briefing this afternoon announcing that General Motors Corp., Ford Motor Co. and Chrysler have until that date to refashion proposals that will be more palatable to lawmakers and the American people. At that point, the companies are to present a business plan going forward -- which theoretically could include plans on how they intend to spend their marketing dollars in the future.

No free ride
"It's all about viability and accountability," said Speaker of the House Nancy Pelosi, D-Calif., of the plans Congress needs to get from Detroit to fashion a deal. She said Congress recognizes how important the domestic auto industry is to America's economy, military and national security.

Majority Leader Rep. Harry Reid, D-Nev., again scolded Detroit's auto chieftains for flying to Washington on corporate jets even as they were claiming their companies were on the brink of running out of operating cash.

He said lawmakers would come back from recess and reconvene on Dec. 8 if Detroit's next round of proposals provide "accountability and viability" at the car companies.

The auto industry "should not get a blank check," added Sen. Kit Bond (R-Mo.).
In this article:
Most Popular