The newly elect US President Barack Obama supports the US congressional demands of automakers offering a game plan for survival before approval of lawmakers of a taxpayer sponsored bailout. David Axelord, Obama’s chosen man for White House adviser said that all the citizens have a stake in the growth of the auto industry and in order to continue the prosperity retooling and rationalization is necessary.

Obama has supported Detroit by providing $50 billion as federal aid to help Big Three automakers face the current economic situation and help them in manufacturing fuel-efficient Cars which grew in demand after the rise in gasoline prices.

Lawmakers have been cracking their brains on how to help the industry but with corporate executives using their private jets to fly to different areas, Democrats wanted to know the business plan of how best taxpayer’s money is being used. According to an interview with the CBS, Nancy Pelosi of the House of Representatives Speaker Nancy Pelosi said that there must be a business model in place for the Congress to work on.

None of the companies would be interested in investing in a business model without seeing it nor would tax payers’ dollars could be invested without understanding the model. Already a loan of $25 billion has been approved by the Congress to help US factories manufacture more fuel efficient cars. The industry is also looking for of $25 billion in loans for bridging the gap and helping the industry survive the downfall. While congressional Democrats think that the loan is required for funding technological advancements while President George W. Bush wants to use $25 billion as a bridge loan.

This entry was posted on Tuesday, November 25th, 2008 at 10:47 am and is filed under Car Insurance News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.