Sputtering US automakers were offered a US$25 billion shot in the arm by Washington on Wednesday, when legislators agreed to cover the cost of insuring a massive loan from the US Energy Department.
While the loans are restricted to funding “advance technology vehicles” and can be offered to any automotive suppliers or manufacturers, they are considered critical for shoring up the fragile finances of General Motors, Ford and Chrysler.
The “Big Three” US automakers have been bleeding money in the face of a steady loss of market share to Asian competitors.
They have undergone massive restructuring programs and revamped their product lines in recent years but continue to post staggering losses amid a weakening economy and a shift away from their gasoline guzzling truck and sport utility vehicles.
With their credit ratings now deep into junk status and the financial crisis limiting access to loans from the private sector, analysts have speculated that at least one of the Big Three could end up running out of money in the coming months.
GM has lost about US$70 billion since 2005 while Ford’s losses have approached US$24 billion since 2006. Chrysler, which is now privately owned after being sold by Daimler last year, has lost US$400 million so far this year, after losing 1.9 billion last year.
The Big Three automakers have stressed that loans are not a bailout and will be used to pay for more fuel efficient engines, development of lighter-weight vehicles and new high-tech batteries for electric vehicles or plug-in hybrids.
SOLIDARITY: A group of European lawmakers condemned China’s aggressive moves, while the foreign minister of Lithuania said Taiwan ‘cannot become a second Ukraine’ A German parliamentary delegation would visit Taiwan in the first week of October, German lawmaker Holger Becker on Monday told visiting Democratic Progressive Party legislators Fan Yun (范雲) and Lin I-chin (林宜瑾) at the Bundestag in Berlin. Asked by Fan whether he is worried about possible reprisals from Beijing, such as banning him and his family from entering China, Becker said he is more interested in visiting Taiwan, as “now is the time for democracies to stand together.” Fan and Lin also met with German officials to exchange views on digital education and governance. Investing in digital infrastructure and protecting equal rights to
As China waged extensive military exercises off Taiwan, a group of US defense experts in Washington was focused on their own simulation of an eventual — but for now entirely hypothetical — US-China war over the nation. The unofficial what-if game is being conducted on the fifth floor of an office building not far from the White House, and it posits a US military response to a Chinese invasion in 2026. Even though the participants bring a US perspective, they are finding that a US-Taiwan victory, if there is one, could come at a huge cost. “The results are showing that under
‘SIMULATED ATTACKS’: Ten warships each from China and Taiwan were maneuvering at close quarters in the Taiwan Strait, with some Chinese vessels crossing the median line Taiwan yesterday reiterated that it would not succumb to pressure from Beijing after China carried out its most provocative military drills in decades in retaliation for US House of Representatives Speaker Nancy Pelosi’s trip to Taiwan last week. “We will never bow to pressure. We uphold freedom and democracy, and believe Taiwanese disapprove [of] China’s bullying actions with force and saber rattling at our door,” Premier Su Tseng-chang (蘇貞昌) said yesterday. China had “arrogantly” disrupted regional peace and stability, he said, calling on Beijing to not flex its military muscles. President Tsai Ing-wen (蔡英文) has also called on the international community to “support
DRILLS CONTINUE: China’s creation of a restricted zone across the median line of the Taiwan Strait challenges a 70-year-old fact, a ministry of defense official said The nation’s military fully complies with international rules and guidelines when responding to Chinese military drills, the Ministry of National Defense said yesterday, vowing to continue defending Taiwan in accordance with international law. China on Thursday launched four days of military drills around Taiwan proper in response to US House of Representatives Speaker Nancy Pelosi’s visit to Taipei. The drills were expected to end on Sunday, but neither Beijing nor Taipei confirmed their conclusion, although the Ministry of Transportation and Communications said it had seen some evidence suggesting at least a partial drawdown. However, China yesterday said the drills would continue, saying “the