Top-level White House officials should push hard, using emergency measures if needed, to make sure that $25 billion in low-cost loans start flowing to U.S. automakers before the George W. Bush administration leaves office, former Michigan Gov. John Engler said in a speech today at the Detroit Economic Club.
Engler, now president of the National Association of Manufacturers, said he was alarmed to hear that release of the funds — for retooling to produce more fuel-efficient vehicles — may not take place until mid-2009 or later.
Delays would be dangerous to the future of the automakers, Engler said, referring to dwindling cash reserves of General Motors Corp. and Ford Motor Co. and the sharp drops in their stock prices last week.
“The administration has an obligation to get the money to these companies,” he said, suggesting that White House Chief of Staff Joshua Bolten or other high-ranking officials get involved to expedite the process.
“They’re using all kinds of emergency powers at Treasury in the financial crisis,” he said, suggesting the auto loans are critically important, too.
Last week, U.S. Energy Secretary Samuel Bodman said his department would write a rule within 60 days regarding allocation of the auto loans, but said it could take six to 18 months before the money is actually dispensed.
source:Freep.com
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