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Industry News

Automakers ask for $34 Billion

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It's been just two weeks since Ford, GM and Chrysler asked Congress for $25 billion and now it's gone up to $34 billion. The new number breaks down as a $9 billion loan to Ford, a $7 billion loan to Chrysler and a $18 billion loan to GM.

With the help of this loan, Ford hopes to breakeven or return to profitability by 2011. They play to accelerate their electric car program with a 2010 model and invest $14 billion in "advanced technologies and products to improve fuel efficiency".

Meanwhile GM and Chrysler are in much worse shape. If GM can secure the government loan, they will use $4 billion immediately to keep the company afloat and another $2.9 billion over the next 3 years for alternative fuels and advanced propulsion technologies. GM is reviewing Saab, Saturn and Pontiac to determine their future. They will put their attention on Buick, Chevrolet, Cadillac, and GMC.

One thing that's for sure is that the face of the US auto industry is going to look a lot different in the years to come.

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