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 GM, Ford, Chrysler CEOs to Meet With Speaker Pelosi (Update2) By John Hughes  Nov. 5 (Bloomberg) -- General Motors Corp., Ford Motor Co. and Chrysler LLC chief executive officers, who have urged the government to provide billions of dollars of aid, will meet with House Speaker Nancy Pelosi tomorrow in Washington, according to people familiar with the matter. United Auto Workers President Ronald Gettelfinger is also scheduled to participate in the meeting with Pelosi, a California Democrat, the people said. The two people who discussed the meeting requested anonymity because it hasn't been announced publicly. U.S. auto sales slumped last month to the worst since 1983 and Detroit-based GM has posted almost $70 billion in losses since the end of 2004. President-elect Barack Obama said last week he plans to work with the industry to make it more competitive. Automakers, the UAW and state political leaders in recent days and weeks have sought support from the Energy Department, the Federal Reserve, the Treasury Department and from Congress. Spokespeople for the three automakers and Pelosi had no comment. Six U.S. governors said in a letter released Oct. 30 to Paulson and Federal Reserve Chairman Ben S. Bernanke that ``immediate action'' should be taken to help boost available funds for the U.S. auto industry. Paulson's Plan The $700 billion rescue plan for the financial system can help thaw frozen credit markets that prevent buyers from getting auto loans, curbing vehicle sales, leaders of states including New York and Michigan wrote. Treasury Secretary Henry Paulson wants any assistance for the carmakers to come from a $25 billion low-interest loan program through the Energy Department, not the $700 billion in rescue funds being offered for banks, the people said last week. The Energy Department said today it has set the interim rules for how automakers can apply for as much as $25 billion in federal loans approved by Congress to help cover the costs of producing more energy-efficient vehicles. GM sought about $10 billion from the government last month, with Chief Executive Officer Rick Wagoner lobbying in person for help, people familiar with the plans said. The UAW is seeking an additional $25 billion in loans for the automakers for health-care costs, along with Treasury or Federal Reserve aid for ``immediate liquidity,'' Alan Reuther, the union's legislative director, said today in an interview. President-elect Obama has called for a $175 billion stimulus package to follow the $168 billion package signed into law in February. Economists, including Martin Feldstein and Nouriel Roubini, say the economy is in such dire shape that the plan may have to be much bigger, starting at about double the 2007 federal budget deficit of $161.5 billion. To contact the reporters on this story: John Hughes in Washington at Jhughes5@bloomberg.net Last Updated: November 5, 2008 21:33 EST |
