I have been in automotive supply for twenty years and this is one of the worst ideas I have ever seen. The company that I work at has proposed many ideas to Ford to save money and lower component weight (for better fuel economy), but I have seen such internal problems at Ford that destroy anything good for themselves. Currently, people are employed by Ford and I don’t want to see people loose jobs, but on the other hand I don’t care if Ford dies tomorrow. My perspective is Ford would loose this money so fast and there would be no tangible return for it. They have made their bed…let them sleep in it. As well as Ford, GM and Chrysler are relying on SUV and truck sales. 71% of Chrysler’s sales have been minivans, trucks, and SUV’s. Because truck and SUV sales are currently in the tank Chrysler is projecting a 1.5 billion dollar lost for the third quarter of this year. The new Jeep Commander is setting on the lot. These companies have not planned for the future so why should the US tax payer help them? As these companies die people do loose jobs, but consider the other auto companies that are here AND GROWING. Honda employs many Buckeyes. A Honda Accord is one of the most American made cars today. Three models of Toyota are built in Indiana. Hyundai as a plant in the US and A Kia plant is in the future. BMW builds SUV’s in the US for EXPORT. The ML and R-Class that you and I see are built in Alabama. These companies employ people in this country. These are companies with futures. I have to stop because this plan is making me ill.

Here is a link to the article: http://www.detnews.com/apps/pbcs.dll/article?AID=/20060920/AUTO01/609200373/1148/AUTO01

Bill calls for loan guarantee for Big 3

$20B in federally backed funds would help automakers develop fuel-efficient technologies.

David Shepardson / Detroit News Washington Bureau

WASHINGTON -- The Big Three automakers could get up to $20 billion in federally backed loan guarantees to speed the development of "green technologies," including hybrid electric engines, flexible fuels and clean diesel under a bill to be introduced this week in Congress.

U.S. Rep. Mike Rogers, R-Brighton, said the bill would give domestic automakers cheaper access to capital and spur faster development of technologies to reduce dependence on foreign oil.

"This isn't the dreaded bailout word. This isn't a free pass for them to avoid painful decisions or restructuring," Rogers said Tuesday. "This is a chance for the automakers to compete on a fair playing field with access to the credit markets. This is about supporting real jobs for real Americans through innovation."

General Motors Corp., Ford Motor Co. and DaimerChrysler's Chrysler Group have all seen their credit ratings sharply reduced; GM and Ford are rated as speculative or junk status.

On Tuesday, Ford and Ford Credit's ratings was reduced again by both Moody's Investors Service and Standard & Poor's rating services.

If adopted, the bill could dramatically reduce borrowing costs for the Big Three, potentially saving them hundreds of millions of dollars.

Automakers were receptive to the congressman's proposal, welcoming the financial support for technological research.

"We find it encouraging that there is support from Congress to accelerate green technology," said Mike Moran, a Ford spokesman.

Rogers said the bill would speed up research and increase "the commercialization of American-made hybrid electric, clean diesel and flexible fuel vehicles." It would also allow an automaker to retool a plant to take advantage of new technologies.

The bill would create a "$20 billion green technology incentive program" that would grant the U.S. Energy Department the authority to approve loan guarantees to automakers for specific projects such as hydrogen research or E85, an alternative fuel made of 85 percent ethanol. The provision would mean the U.S. Treasury must repay the loan if an automaker defaults.

"This bill is fiscally responsible because it requires the loans be paid back," Rogers said. "I don't think this bill will cost taxpayers one cent."

Rogers said the bill would also "level the cost of investment capital in the United States between domestic and Japanese auto manufacturers." Ford said it supported the measure and disclosed it has expressed interest in a new, smaller federal loan-guarantee program.

On Aug. 7, the Energy Department unveiled guidelines for a $2 billion loan guarantee program to "help spur investment in projects that employ new energy technologies," stemming from a provision in the 2005 Energy Bill; applications are due Nov. 6.

Ford spokesman Moran said the automaker had been in "pre-application discussions with the Energy Department to see if there is a fit with what we are doing."

Rogers said hundreds of thousands of American jobs are directly or indirectly supported by Ford, not to mention retirees who live on Ford pensions. "Ford's survival is in America's interest," he said.

GM spokesman Greg Martin said the automaker wasn't seeking loan guarantees.

"It's an intriguing idea that merits consideration, but right now our turnaround and our success rests on the advanced technology that we are putting in our cars and trucks today," he said.

The proposal is modeled after an $18 billion loan-guarantee program Congress passed in October 2004 to build a 3,500-mile natural gas pipeline in Alaska.

While the draft bill is meant to help the Big Three automakers, it doesn't exclude any automaker. Rogers said foreign-based automakers would be eligible to apply.

Jo Cooper, Toyota's vice president for government affairs, applauded the effort, as long as it remains fair. "We really want our competitors to be strong and competitive in the marketplace," he said. "If it was offered broadly to companies in the industry and wouldn't advantage some companies over others, it may be very attractive."

Rogers has been sounding out members privately about the bill in recent weeks and has garnered a lot of support -- even from a member of the House Republican leadership.

Rogers said he hopes the bill can be approved by the end of the year.

"Anybody with an auto plant in their district, anybody will an understanding of the auto industry, will support this bill," Rogers said. "No one in America wants to see Ford's turnaround plan fail."

You can reach David Shepardson at (202) 662 - 8735 or dshepardson@detnews.com.

where do they keep getting all this money from.. 20B here.. another 7B there... its absurd!

What? they haven`t been competing on a fair playing field? I guess if you consider they are run by dinosars thinking like it`s still the 20th century that might be the case.

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300TD W124, Two VW TDI Passat Wagons,Cummins Ram 250, Kubota Tractor
23 cylinders sipping the sweet sauce of the soy bean

Dinosaur, fossil fuel... get it get it?

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You don't need a weatherman to know which way the wind blows - Robert A. Zimmerman

Just to show you how stupid this is, DC is a GERMAN company, yes they are owned by GERMANS. So why is my tax money bailing out a German company owned in large part by a German bank???? If DaimerChrysler AG is so worried about losses in its Chrysler division then they had better get on the ball, or dump Chrysler. Why would Chrysler need money for such technoligy when MB it's parent company is currantly doing it. Oh I am so glad that a few billion of my tax dollars is going right into Germany, yeah thanks.

Now for the last two, they made there bed let them lie. They don't need a gov loan, the very idea makes me sick. If they cannot compete on there own then let them go under and be replaced by someone who can.

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1999 SL500
1969 280SE
2023 Ram 1500
2007 Tiara 3200

Together, Mideast nations, the governments themselves, not the people who live and own businesses there, own the largest stakes in DCX. Kuwait leads the charge with around 7% I think.

Ah...

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You don't need a weatherman to know which way the wind blows - Robert A. Zimmerman