Detroit's embattled automakers have two weeks to show a skeptical Congress how a multibillion-dollar lifeline would help them keep the industry from imploding.
A bailout-shy Congress punted a US$25 billion auto industry rescue on Thursday, as Democratic leaders said they wouldn't help the beleaguered Big Three until the companies presented them with a plan showing how the federal funding would stabilize their faltering industry.
“The executives of the auto companies have not been able to convince Congress or the American people that this government bailout will be its last,” Senate Majority Leader Harry Reid said.
He said General Motors Corp, Ford Motor Co and Chrysler LLC needed to submit their plan to Congress by Dec. 2.
Hearings are expected and lawmakers could consider legislation during the week of Dec. 8, but only if the industry shows that taxpayers and auto workers would be protected, congressional leaders said.
US automakers are struggling to stay afloat heading into next year amid an economic meltdown, a precipitous drop in sales and a tight credit market. The three companies burned through nearly US$18 billion in cash reserves during the last quarter and GM and Chrysler have said they could collapse in weeks.
Detroit's carmakers employ nearly a quarter-million workers, and more than 730,000 other workers produce materials and parts that go into cars. If just one of the automakers declared bankruptcy, some estimates put US job losses next year as high as 2.5 million.
Congress, meanwhile, is weighing a tricky political question: Should it spend billions more on government bailouts or run the risk of bearing the blame for a US auto industry meltdown?
The outgoing administration of President George W. Bush criticized the congressional delay, saying lawmakers should consider a plan to let the automakers tap a separate US$25 billion loan program for fuel-efficient cars for their short-term cash needs.
“Why are they going to kick the can down the road?” White House press secretary Dana Perino said.
Supporters of a bipartisan agreement to temporarily divert the fuel-efficiency funds to cover the auto companies' operations said they were hopeful of winning support next month.
“We need speed. This is a very, very important moment,” Democratic Senator Carl Levin said.
Reid and House Speaker Nancy Pelosi said a US$25 billion bailout proposal that would have tapped loan money from the US$700 billion bailout plan lacked enough support in Congress.
Also See: Auto industry stalls, waits for bailout
Taiwan has experienced its most significant improvement in the QS World University Rankings by Subject, data provided on Sunday by international higher education analyst Quacquarelli Symonds (QS) showed. Compared with last year’s edition of the rankings, which measure academic excellence and influence, Taiwanese universities made great improvements in the H Index metric, which evaluates research productivity and its impact, with a notable 30 percent increase overall, QS said. Taiwanese universities also made notable progress in the Citations per Paper metric, which measures the impact of research, achieving a 13 percent increase. Taiwanese universities gained 10 percent in Academic Reputation, but declined 18 percent
RETHINK? The defense ministry and Navy Command Headquarters could take over the indigenous submarine project and change its production timeline, a source said Admiral Huang Shu-kuang’s (黃曙光) resignation as head of the Indigenous Submarine Program and as a member of the National Security Council could affect the production of submarines, a source said yesterday. Huang in a statement last night said he had decided to resign due to national security concerns while expressing the hope that it would put a stop to political wrangling that only undermines the advancement of the nation’s defense capabilities. Taiwan People’s Party Legislator Vivian Huang (黃珊珊) yesterday said that the admiral, her older brother, felt it was time for him to step down and that he had completed what he
BULLY TACTICS: Beijing has continued its incursions into Taiwan’s airspace even as Xi Jinping talked about Taiwan being part of the Chinese family and nation China should stop its coercion of Taiwan and respect mainstream public opinion in Taiwan about sovereignty if its expression of goodwill is genuine, the Ministry of Foreign Affairs (MOFA) said yesterday. Ministry spokesman Jeff Liu (劉永健) made the comment in response to media queries about a meeting between former president Ma Ying-jeou (馬英九) and Chinese President Xi Jinping (習近平) the previous day. Ma voiced support for the so-called “1992 consensus,” while Xi said that although the two sides of the Taiwan Strait have “different systems,” this does not change the fact that they are “part of the same country,” and that “external
UNDER DISCUSSION: The combatant command would integrate fast attack boat and anti-ship missile groups to defend waters closest to the coastline, a source said The military could establish a new combatant command as early as 2026, which would be tasked with defending Taiwan’s territorial waters 24 nautical miles (44.4km) from the nation’s coastline, a source familiar with the matter said yesterday. The new command, which would fall under the Naval Command Headquarters, would be led by a vice admiral and integrate existing fast attack boat and anti-ship missile groups, along with the Naval Maritime Surveillance and Reconnaissance Command, said the source, who asked to remain anonymous. It could be launched by 2026, but details are being discussed and no final timetable has been announced, the source