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.
The big carmakers will be begging Congress for a $50B loan, this immediately after the Government takes over control of Fannie Mae and Freddie Mac, the two mortgage giants who account for about 9 mortgages out of 10 in the USA.
Read more about the carmakers plea:
Auto industry allies hope to secure up to $50 billion in government loans this month that would pay to modernize plants and help struggling car makers build more fuel-efficient vehicles.
With Congress returning this coming week from its summer break, the industry plans an aggressive lobbying campaign for the low-interest loans. The situation is growing dire after months of tumbling sales, high gasoline prices and consumers’ abandoning profitable trucks and sport utility vehicles.
Lawmakers authorized $25 billion in loans in last year’s energy bill to help the companies build fuel-efficient vehicles such as hybrids and electric vehicles. With credit tight, automakers and suppliers now want lawmakers to come up with the money for the program — and expand the pool of money available to $50 billion over three years.
Automakers plan to urge Congress to support funding up to $50 billion in low-interest loans over three years to help them modernize their assembly plants and develop next-generation fuel-efficient vehicles.Industry officials said the loans, which are twice the amount authorized in last year’s energy bill, are a top priority when Congress returns next month because of the declining fortunes of Detroit’s automakers and tightening credit markets.
“The amount of concern and urgency from the Detroit companies has increased in the last month and significantly ratcheted up what they’re communicating what their funding needs are,” said Alan Reuther, legislative director for the United Auto Workers union.
Congress authorized $25 billion in low-interest loans in last year’s energy bill, but the auto industry’s allies in Congress have been unable to get funding for the plan. Continue reading…
According to CNN Money
BLOOMINGTON, Ill., Oct. 15 /PRNewswire/ — The equivalent of a classroom of teens dies each day in vehicle crashes. State Farm® is asking young drivers to take the wheel in helping prevent teen fatalities on the road. As part of the first-ever National Teen Driver Safety Week, Oct. 15-19, 100 teens from coast to coast are convening in Washington, D.C. today for a State Farm student-led youth summit to talk about real solutions that can change driving behaviors and help save lives. The young drivers will take the findings back to their communities to activate best practices.
State Farm and The Children’s Hospital of Philadelphia® actively joined U.S. Rep. Charlie Dent (R-PA) in his push for a National Teen Driver Safety Week. Held the third week of each October, it encourages parents, young drivers, lawmakers and educators to work together to change risky driving behaviors and help save lives. Congressman Dent and U.S. Sen. Bob Casey (D-PA) joined with more than 50 co-sponsors on June 6, 2007 to introduce the bipartisan resolutions in Congress to create the week.
“Vehicle crashes continue to kill teens in communities across the country, and through State Farm’s research with The Children’s Hospital of Philadelphia we’ve discovered the true tragedy is that most of the deaths are preventable,” said Laurette Stiles, vice president of Strategic Resources for State Farm. “Our work focuses on more than just messages about teen driving. We’ve conducted groundbreaking research and have made a commitment to continue research and implement evidence-based solutions with help from teen drivers.”
During the student-led youth summit, young drivers will address graduated driver licensing laws, best driving practices and solutions for reducing distracted driving. Facilitated by State Farm, the 100 high school students will identify an action plan for their own communities.
“Too often we hear about young lives being cut tragically short by vehicle crashes that could have been avoided,” Congressman Dent said. “This is a busy time of year for teenagers. I believe it appropriate we take the time now to help our young people adopt safe and responsible driving habits for life.”
As part of its efforts during National Teen Driver Safety Week, State Farm is issuing a handbook with tips for parents on how to improve their teens’ driving, including giving teens as much supervised practice behind the wheel as possible and not allowing other passengers to ride in their vehicle for at least six months. The handbook is available through State Farm agents and at http://www.BetterTeenDriving.com.
Teen Driving Fatalities a National Epidemic
According to the National Highway Traffic Safety Administration, almost 7,000 16 to 20-year-old drivers were involved in fatal crashes in the United States in 2006. In recent months, teen deaths caused by risky driving behaviors have brought a surge of media attention to the issue. In June 2007, five New York teenagers died in a fiery crash when their sport utility vehicle swerved into oncoming traffic, hitting a tractor-trailer. Authorities cited common risk factors such as nighttime driving, text messaging, and driving with multiple passengers in the vehicle as possible causes of the tragedy that rocked a small community to its core.
A national survey conducted by State Farm and The Children’s Hospital of Philadelphia earlier this year provided some surprising insights into the teen driving environment, including the fact that while teens are aware of the dangers of drinking and driving, they may not realize the risks of other driving distractions and behaviors, such as fatigued driving, speeding, using handheld devices, and driving with multiple teen passengers.
Working together for more than 10 years, State Farm and The Children’s Hospital of Philadelphia have a proven track record in conducting research and implementing programming that have helped reduce injuries and fatalities to children in motor vehicle crashes through their Partners for Child Passenger Safety initiative. Through their leadership in education, research and advocacy around auto safety, the partners are now focused on helping teens become safer drivers. State Farm also is working with other partners like the National Youth Leadership Council to put research into action in communities across the country.
Parents and teens can learn more about the latest research and recommendations on safe driving for teens at http://www.BetterTeenDriving.com.
About State Farm
State Farm® insures more cars and homes than any other insurer in the United States and is also a leading insurer in Canada. State Farm’s 17,000 agents and 68,000 employees serve more than 76 million auto, fire, life and health policies in the United States and Canada, and more than 1.7 million bank accounts. State Farm Mutual Automobile Insurance Company is the parent of the State Farm family of companies. State Farm is ranked No. 31 on the Fortune 500 list of largest companies. For more information, please visit statefarm.com® or in Canada statefarm.ca®.
About The Children’s Hospital of Philadelphia
The Children’s Hospital of Philadelphia was founded in 1855 as the nation’s first pediatric hospital. Through its long-standing commitment to providing exceptional patient care, training new generations of pediatric health care professionals and pioneering major research initiatives, Children’s Hospital has fostered many discoveries that have benefited children worldwide. Its pediatric research program is among the largest in the country, ranking third in National Institutes of Health funding. In addition, its unique family-centered care and public service programs have brought the 430-bed hospital recognition as a leading advocate for children and adolescents. For more information, visit http://www.chop.edu.
PLAY
