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Automakers bailout hits a snag

The $15 billion bailout designed to prevent U.S. automakers from going bankrupt -- especially General Motors Corporation (NYSE: GM) and Chrysler L.L.C. -- need to avoid bankruptcy has hit a snag, according to the New York Times. Ford Motor Company (NYSE: F) is not in as dire shape.

"The last-minute disagreement centered on a single word - with the Senate bill requiring the automakers `to comply with all applicable federal fuel efficiency and emissions requirements' and the House bill referring to `all applicable fuel efficiency requirements,' which would also include state emissions rules that the automakers oppose," the Times said.

Senate aides told the paper that the House bill was "doomed" because it would be rejected by the Senate. Many Republicans also oppose the bailout. These sorts of fights are nothing new.

Detroit has fought against tighter CAFE (Corporate Average Fuel Efficiency) standards for years, arguing they made them less competitive. The companies were able to beat back these efforts thanks to Rep. John Dingell, who chaired the Energy and Commerce Committee. Dingell could make bureaucrats, particularly those at the EPA, quiver at the mention of his name. They dreaded receiving "Dingell grams", lengthy often acerbic letters designed to heap scorn on policies he opposed -- and there were many. But Dingell is gone now.

Continue reading Automakers bailout hits a snag

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Last updated: May 28, 2012: 06:22 PM

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