A handful of bipartisan senators are scurrying to hammer out a bill that would reallocate funds from an initial $25 billion loan to the Big Three automakers in the hopes of keeping the companies afloat.
The initial loan, granted last month, was meant to be used to retool factories to produce more fuel-efficient vehicles.
During the past two days of hearings, Congress appeared disinclined to grant a second $25 billion loan to the Big Three. Lawmakers sought assurances from the Big Three CEOs that the funding would be sufficient —that the trio wouldn’t be back in six months asking for more money.
In my opinion, this reallocation is probably the quickest way to find out. The funds have already been approved, so Congress wouldn’t lose anything upfront. To think that the Big Three are concentrating on ways to retool their factories — when they fear they won’t be able to make payroll — seems silly. In other words, if they can’t meet their operational obligations with this first loan, we won’t have to worry about a second one.
