Congressional leaders have agreed to grant the big three more time for the bailout case. Till now the Detroit giants have been unable to present a strong case for their claim on the $25Billion bailout. The congress has asked the General Motors Co, Ford Co and Chrysler to present a detail plan as to how they are going to spend the money.
A two day session took place in Capitol Hill to discuss the bailout for automakers this week. All the three automakers were unable to convince the government that once the $25billion is granted, they would not need further assistance from the government. They were also unable to prove that the companies were getting mere cost efficient and competitive. To make the matter worse the CEO’s of the three corporations came to Capitol Hill in the private jet.
The congress has agreed to give some more time to the three auto giants to put up a strong case. The next testimony will take place on Dec 2rd 2008, which would play a major role in deciding the fate of these corporations. The speculations are that if the government doesn’t support them soon, then at least one of the three corporations will not survive till the next year. It is also estimated that the one going down may take the other two with it.
http://www.latimes.com/business/la-fi-bailout21-2008nov21,0,2593789.story?page=1
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