US loan package fails to get Senate support

12 December 2008 #SMMT News

A $14bn (£9.4bn) loan package for the US car industry has failed to get Senate support after gaining approval from the House of Representatives yesterday (11 December 2008). If approved, the package would have provided loans to Chrysler and GM to keep them in business over the coming months and Ford to manage the long-term impact of the credit crunch. The Senate rejected the plans after the United Auto Workers (UAW) union refused to cut wages next year.


“The Senate’s decision to reject the automotive industry loan package is of course disappointing, but the situation in Europe and the UK is considerably different, said SMMT chief executive Paul Everitt. The UK industry has received positive reactions to its call for UK government support and we will continue to pursue these opportunities to support manufacturing and employment in the UK.


On behalf of the industry, the Society of Motor Manufacturers and Traders (SMMT) is calling for a package of measures to support the UK automotive sector from dealers to vehicle manufacturers, through to the supply chain. The package includes allowing manufacturers’ finance companies access to the Bank of England’s special liquidity arrangements, loan facilities, a review of motoring taxation and support for training, research and development.

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