Industry lobbies at convention for federal loan program

[DainBramaged]

Political conventions are famous for nonstop parties.

But this year, more so than in the past, some automobile industry executives are emphasizing work over socializing here at the Democratic National Convention.

A big reason: They believe that a low-interest federal loan program for automakers and suppliers must be funded this year, and time is running out, said John Bozzella, Chrysler LLC's vice president of global external affairs and public policy.

The timing of the loans is just about as critical as the amount of money that would be made available, Bozzella told Automotive News before entering a Michigan delegation meeting in a hotel in Broomfield, Colo., a mountain-rimmed Denver suburb.

"We need to get this done this year," he said today. And at the convention, "it is the number-one agenda item for me this week. Absolutely. No question about it."

Convention-related events this week provide good access to members of Congress and other political leaders who will be deciding whether the loan program gets funded.

Late last year, Congress and the White House authorized as much as $25 billion in loans, conditioned on companies using the funds to develop fuel-saving vehicle technologies. But the program still needs to be underwritten with some taxpayer dollars -- roughly 15 percent of the ultimate loan total.

A Senate measure would allow as much as $6 billion in loans, but talk behind the scenes suggests that as much as $50 billion may be funded.

Industry leaders and their Washington allies say the need has escalated because automakers and suppliers have been hit with rapid and dramatic changes in the marketplace. Those changes include higher fuel prices; slower sales, especially of the most profitable vehicles; and soaring interest rates on new borrowing -- all at a time when the companies must invest billions to meet tougher fuel economy standards on the horizon.

With adequate funding, "the payback will be tremendous both for the American people as well as the federal government," said Bozzella, a former Democratic Party staffer and volunteer.

After the state delegation meeting, Sen. Carl Levin, D-Mich., told Automotive News he thinks the chances of getting some funding for the loan program this year are "decent."

And while $25 billion in the first year would be "great," Levin added, "The amount is not yet known."

http://www.autonews.com/apps/pbcs.dll/article?AID=/20080825/ANA02/113292/1200 (subscription only)

So the manufacturer's association slams Obama/Biden for not voting with them, but comes to Denver hat in hand for a bailout.

I r confused.

[DJ13]

1. Typical of free market types

When the profits are rolling in they want no regulation, no tax, no worker benefits.

But as soon as their free (market) ride is over they want the government to step in and pay the costs.

[eshfemme]

2. Yeah, capitalism would work and sound better if they would just quit doing that.

Unless to them, capitalism is really corporate socialism.

I think it was a sad day for everyone when corporations were granted the same rights as individuals when they lack the one ability that all life must and should have: the ability to die.