Faced with the fear that the collapse of one or more of Detroit's Big Three automakers could lead to a domino effect deepening the U.S. economic recession in which half a million people (533,000 to be exact) have already lost their jobs in November, the White House and Congressional Democrats neared an agreement on a $15 billion short-term emergency loan for GM, Ford and Chrysler LLC, congressional aides said late Friday.Details of the likely deal are still in the works but it is reported that the money will come from a special $25 billion program that was initially intended to help the Big Three develop more energy efficient technologies instead of the $700 billion pool created to aid financial-industry companies. However, Nancy Pelosi, Speaker of the House of Representatives, said that the Big Three must repay this loan "within a matter of weeks."
The proposed $15 billion short-term loan is less than half the money that GM, Chrysler and Ford CEOs hoped to get when they arrived on Capitol Hill on Thursday for the two day hearing. The automakers were seeking $34 billion in aid. Detnews reported that General Motors said it needed $4 billion by the end of the year to make it until January as part of its request for $18 billion while Chrysler was asking for a $4 billion to stay afloat until the end of March. Ford, which appears to be in a better position that the other two automakers said it wanted access to a line of credit of up to $9 billion but only in the case if the economy worsens.
