Ford Says Automakers Need Low-Interest Federal Loans
Situation is such that, the U.S. automakers and even their suppliers are seeking for federal loans, as they are struggling to ride out the steep downturn in the U.S. auto sales.
At the recent Democratic National Convention, Ford Motor Co. executives announced that the company needs low-interest federal loans, but they didn’t mention the amount of money they need. Ford purchasing chief, Tony Brown said, “We’re still dimensioning.”
Michigan Senator, Debbie Stabenow, who was also present at the convention told that, because of the the rapid deterioration of financial markets in the U.S., federal loans have become urgent.
She also mentioned the provision of energy bill that was signed into law last year. The Congress authorized $25 billion in the energy bill, which set aggressive fuel-efficiency standards and created a loan program to help automakers develop and build vehicles with higher fuel economy.
However, the funding has not yet been appropriated and rules have not been finalized by the Department of Energy.
Along with the automakers, auto suppliers are now also seeking federal loans.
Ann Wilson, senior vice president of government affairs for the Motor & Equipment Manufacturers Association, said at the convention that, her members have been also asking for some funds under the loan program, approved by the U.S. government last year.
