Congress has approved the $25 billion loan package for the auto industry which analysts say the Big 3 need very quickly as sales continue to slump. GM, Ford and Chrysler are expected to get the bulk of the $25 billion since they are losing billions and already face debts.
All three are also moving from their predominantly trucks and SUVs lineup to more compact and fuel-efficient vehicles and thus need more money to retool plants and develop technologies that will help them get close to the 35 mpg by 2020 requirement.
“The longer it takes the less valuable and useful it is,” Senator Carl Levin, D-Mich. told the Associated Press. “It may vary from company to company depending on their individual circumstances.”
It’ll be important to get the money to the Big 3 within six months said Levin. Why six months? Levin says that that’s the time all three automakers are retooling their plants to debut compact and fuel-efficient models by 2010.