House leader Nancy Pelosi may have given the beleaguered U.S. auto industry it's biggest and best hope yet after the leading Congressional Democrat told NPR that Congress is considering more loan money for the ailing industry. Pelosi and House leadership met on Monday about a second $25 billion bridge loan that would buy the Detroit Three time during a brutal downturn. Pelosi is also meeting with management from each domestic automaker plus UAW President Ron Gettelfinger today to discuss possible loan packages. Pelosi said the potential loans are about "saving an industry," which goes a long way towards showing just how dire the situation has become. Government help for the U.S. auto industry likely won't get resistance from President Elect Barak Obama, as the new Pres has stated publicly in the past that he wants to help get Detroit automakers back on their feet.
This second round of money would come in the form of a low interest loan similar to the $25 billion that has already been approved for more efficient car tech. Washington will likely demand that executive compensation be curtailed as part of any deal, if only to keep shell-shocked Americans from blowing a gasket over the kind of money that is being thrown about our nation's capital. The Detroit News is reporting that further details of these new potential loans may be available as soon as Friday, as Congressional leaders plan to put out a statement. That's the same day third quarter financial results are due to come from Ford and GM, and those numbers aren't likely to be good at all.
[Source: The Detroit News, Photo by Brendan Smialowski/Getty]