A bill set to be passed by Congress and signed by President Bush as early as this weekend- will save the big three that have been feeling rather small.
General Motors, Ford, and Chrysler will be receiving loans that will most likely amount to at least $5 billion each. That would allow them to borrow money at interest rates as low as 4 percent—a steep discount compared with the double-digit rates they’re paying now.This means that over the years, the automakers will save hundreds of millions in financing costs.
The big three need the money and help desperately as analysts have predicted that all three domestic car companies will face a life-threatening crisis if the U.S. car market, down about 20 percent so far this year, does not improve.
Although this seems like a huge amount of money, it’s nothing compared with the massive, $700 billion bailout plan for the financial industry.
Continue for some details of the program.
Digg this Blog
Share on Facebook
WatchMojo on Twitter
WatchMojo on YouTube
Add to Favorites
WatchMojo Newsletter 
Honda is currently the only car-maker to offer vehicles that run on compressed natural gas (however these cars are only available in California and New York). This Civic GX is selling out consistently, and so Toyota has decided to get in on the game. In November at the LA auto show, they will be unveiling their CNG-electric hybrid Camry - although the company has not yet decided whether they should put the car into production. Read more…
