অ্যাকসেসিবিলিটি লিংক

US Automakers Warn of Economic Collapse Without Aid

  • VOA News

Top executives from troubled U.S. automakers (General Motors, Ford and Chrysler) have warned of dire consequences if they do not receive 25 billion dollars in federal aid. The chairman of General Motors (Rick Wagoner) told a Senate committee hearing Tuesday that if domestic automakers go bankrupt, it would have a "catastrophic" effect on the nation's economy.

He warned that hundreds of thousands of jobs would be lost. Auto executives said their companies have been adversely affected by the global financial crisis and the resulting decrease in consumer spending. But some U.S. senators said the companies' financial troubles are largely due to internal management problems. Congressional Democrats want to use some money from the 700 billion-dollar economic rescue plan to help the carmakers, but Senate Republicans and the Bush administration oppose the idea.

They say the automakers should get their finances in order by using a previously approved loan from the Energy Department. That 25 billion-dollar loan was meant to help automakers retool to build more fuel-efficient vehicles.

Speaking at a separate hearing earlier in the day, U.S. Treasury Secretary Henry Paulson opposed the Democrats' plan to use an additional 25 billion dollars from the rescue package to help the auto industry. He said the rescue plan should remain focused on the critical task of stabilizing the financial system by buying stock in troubled banks.

A Senate vote on the Democrats' 25 billion-dollar rescue plan for automakers -- which also includes an extension of unemployment benefits -- could come as early as Thursday. But aides in both political parties say the plan does not appear to have enough support to pass.

XS
SM
MD
LG