Speaker of the House Nancy Pelosi and other key Congressional Democrats met Monday to discuss ways to keep the U.S. auto industry afloat during these tough times. Congress is considering a loan of up to $25 billion that would be available immediately. This would be in addition to the $25 billion that has already been approved but won’t be available until 2010.
Congress discussed several options for how the money would be distributed. If the loan is approved, the money will come with limits on compensation and cash bonuses for company executives, The Detroit News reports.
The most important thing for U.S. automakers at the moment is surviving until money from the $25 billion loan passed earlier this year is available. Sales have plummeted the last few months and money is getting tighter and tighter in Detroit. An immediate loan could be the thing that saves the domestic auto industry. Gm has been in talks recently to buy Chrysler because Chrysler has a substantial amount of cash on hand which would help GM survive the next few months.