President George Bush seems determined that his presidency should not end with the historic crash of a domestic car giant. The White House has sent strong signals that help is on the way for the trouble Detroit three- GM, Ford and Chrysler shortly after the initially bail-out plans were blocked by Senate Republicans.
The Associated Press reports that the Bush Administration is currently weighing up several optional sources for the potential $15billion bail out fund. They include tapping the $700 billion financial bailout fund or using federal reserves to stump a loan to help the big three.
Without help from the government Chrysler and GM have said they could run out of money within a matter of weeks. A bankruptcy among the manufacturers could be ‘devastating’ for the economy, the President told reporters.
Meanwhile, here in the UK, Business Secretary Lord Mandelson is to announce similar rescue loans for struggling automakers, The Independent reports.
It is expected that the UK government could announce plans to offer low-interest loans to car manufacturers as early as this week. It is not expected that the UK will match the US potential bail-out loans of $15bn although a spokesperson from the Lord Mandelson’s Department of Business, Enterprise and Regulatory Reform (BERR) said they monitoring closely developments within the auto industry both here and in the U.S.
Tata-owned Jaguar and Land Rover along with GM-owned Vauxhall are among the carmakers expected to benefit from any support BERR may offer.
