US Carmakers' bail-out pleas met with skepticism
Desperate U.S. automakers ran into fresh obstacles from skeptical lawmakers as they appealed with rising urgency — and a new dose of humility — for a $34 billion bailout.
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With US lawmakers in both parties pressing the automakers to consider a pre-negotiated bankruptcy — something they have consistently shunned — the Big Three were contemplating a government-run restructuring that could yield results similar to bankruptcy, including massive downsizing, in return for the bailout billions.
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But there was no assurance they could get even that.
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The auto executives pleaded with lawmakers at a contentious Capitol Hill hearing — their second round in less than a month — for emergency aid before year’s end.
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But with time running out on the current Congress, skepticism about the bailout appeared to be as strong as ever.
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The auto executives are to make their case at a House hearing on Friday, and Congress could take up rescue legislation next week in an emergency session.
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They argued that such a course was justified because of the potential for grave harm to the financial sector in the event of a carmaker collapse.
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Though the current total request is $34 billion, Ford’s proposal says it might have to come back with a second request for an additional $4 billion if the recession persists into 2010, raising the total even higher.