Domestic Automakers Seek Additional $25B in Loans


In 2008 Con­gress man­dat­ed high­er CAFE stan­dards, 35 mpg by 2020. Detroit automak­ers, under assault from import com­peti­tors and slow­er eco­nom­ic growth, cried foul. They claimed bil­lions of dol­lars would be need­ed to retool plants to meet the stan­dard. Con­gress pro­vid­ed $25 bil­lion in low-cost loans to help the automak­ers. Now, domes­tic automak­ers are seek­ing an addi­tion­al $25 bil­lion. Time is run­ning out. While for­eign automak­ers are eli­gi­ble for the loans, they are not expect­ed to par­tic­i­pate.