$34 Billion In Loans And Credit-- that is how much the Big Three automakers are seeking this week as they prepare for another meeting with lawmakers.  Ford is asking for a $9 billion line of credit, Chrysler says it needs $7 billion by year’s end to keep operating, and GM has asked for $4 billion immediately as the first installment of a $12 billion loan. Just in case the economy worsens, GM is also asking for a $6 billion line of credit.

House Speaker Nancy Pelosi (D-California) has told House members to be ready to return to Washington next week if necessary to take up legislation.  Meanwhile, the White House has declined to say whether it would support more than $25 billion. President-elect Obama has taken a wait and see approach to the automaker’s plans. Once the hearings over the next two days have concluded, and Obama has had a chance to hear specifically what is said, most in Washington believe Obama will be more forthcoming as to what aid should be given to the auto market.

The Bush Administration’s position remains that funding should come from an existing loan program that would provide $25 billion for the manufacturers to retool, increasing production of more fuel-efficient and alternative-energy vehicles. Congress would have to relax those standards to speed the money to the firms, but Democratic leaders want to keep that funding in place for that purpose and instead use funds from the $700 billion financial rescue package.

Source:http://www.rotor.com/Default.aspx