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U.S. Big 3 ask Congress for $34 billion bailout+
(Japan Economic Newswire Via Acquire Media NewsEdge) WASHINGTON, Dec. 4_(Kyodo) _ Top executives of the Big Three U.S. automakers, struggling with the fallout from the global financial crisis, pleaded with Congress Thursday for a $34 billion bailout.
The fresh plea came two weeks after their initial request for a government rescue met with fierce opposition from Congress, which ordered the executives to return with more serious business improvement plans.
"We're sorry to be asking for this support. We wish the market conditions were better. They're not. So this is what we need to do," said General Motors Corp. Chairman and Chief Executive Officer Rick Wagoner before the Senate Banking Committee.
"We're here today because we made mistakes, which we're learning from; because some forces beyond our control have pushed us to the brink," he said.
On Tuesday, GM, Ford Motor Co. and Chrysler LLC unveiled new restructuring plans with promises to make smaller, more fuel-efficient cars, decreasing the number of vehicle models, and slashing executive pay and bonuses, which led the combined request for public money to expand to $34 billion from the previous $25 billion.
Ford President and CEO Alan Mulally also adopted a low profile and sought the understanding of Congress about the viability of the automakers' latest plans.
"Since the last hearing, I have thought a great deal about the concerns you expressed. I want you to know I heard your message loud and clear," he said.
"It used to be that our goal was simply to compete. Now we are absolutely committed to exceeding our customers' expectations for quality, fuel-efficiency, safety and affordability," Mulally said. "In short, we are on the right path to becoming a profitable, growing company."
But Sen. Richard Shelby, the top Republican on the committee, questioned the automakers' business improvement plans and asked whether they are ready to capitalize on the crisis to change.
"A lot of people believe sincerely that the restructuring plans that each of your companies has provided us are not a serious set of plans," he said. "If you made this presentation to get a bank loan, I suspect that any sensible banker would summarily dismiss your request."
Committee Chairman Christopher Dodd, a Democrat, said a failure to rescue the auto industry will bring about grave consequences for the entire U.S. economy and sounded willing to help put together legislation to give the Big Three companies access to public money.
"None of us relishes this task that we are asked to consider, yet who among us believes we should risk the consequences of the collapse of...one or more domestic automobile manufacturers," he said. "Make no mistake about it -- those consequences would be severe and sweeping."
"Inaction is unacceptable," he said.
Of the $34 billion, GM asked for up to $18 billion in financial aid from the government, Ford up to $9 billion and Chrysler $7 billion before the end of the year.
Copyright ? 2008 Kyodo News International, Inc.
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