Big 3 carmakers tell Congress how they'd spend loan
GM, Ford and Chrysler submitted restructuring plans to Congress Tuesday as the companies? CEOs get ready to make their plea for a loan later this week.
General Motors says it needs a $4 billion loan this month and a total of $12 billion by late March to keep operating. In return, the auto giant would slash its vehicle brands, lay off workers, close facilities and the CEO has agreed to work for $1 a year.
Ford's CEO has also agreed to work for $1 a year if the company is given a $9 billion loan. In return, the company will sell all five of its corporate jets and will fast-track electric and fuel-efficient vehicles.
Details of Chrysler?s plan have yet to be released.
Since the passage of a $7 billion bailout for Wall Street in October, many taxpayers across the country are growing increasingly skeptical of giving taxpayer money to big companies. They say they want something positive for consumers to come out of the deal.
?I think they should have been proactive prior to this,? Janine D?Amato, of Syosset, says of GM, Ford and Chrysler. ?It shouldn't have had to come to this.?
Meanwhile, Steve Weiss, of Syosset Ford, warns business will get a lot worse for car dealerships if the government does not give the automakers a loan.