Bob Lutz says Automakers are Deserving of Government Financial Support
GM’s Vice Chairman, Robert A. Lutz, said that car manufacturers were deserving of government backed funding to the tune of $50 billion in view of the current credit squeeze. This financial support was crucial for auto makers who needed the capital to transform and speed up the process of manufacturing fuel-efficient vehicles. Mr. Lutz was speaking at an event near Chicago where GM was exhibiting its 2009 lineup.
GM and the United Automobile Workers union are trying to persuade Congress to sanction $3.75 billion to support the $25 billion in loans authorized in 2007. The auto major is also asking for up to twice the original funding amount, on account of a sudden hike in the demand for fuel efficient cars. GM is trying to get Congress to take a decision by September, so that the money would be available in 2009. Critics have cautioned that the loans are a bailout.