Lawmakers oppose further grants for GM

March 09, 2009 / by / 0 Comment

On Sunday, it was announced by House Republican leader John Boehner that he is not going to support funding for General Motors if it doesn’t demonstrate a practical and long term business plan and assure to pay back government money.

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In CBS’s “Face the Nation,” Boehner explained that they have provided $17.4b to General Motors and Chrysler LLC.

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The companies should look for changes in their deals with the United Auto Workers labor union. Now these automakers are looking for further $21.6b from the Govt, but now they have been asked to bring labor costs in line with the plants of foreign competitors in the United States.

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Though federal assistance has not been sought by Ford, but it has signed a deal with UAW regarding freezing wages and making other concessions. It is being expected that Union members would finish voting for it till Monday.

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Boehner says that he is quite hopeful that General Motors will not turn to bankruptcy, but Republican Senators like Richard Shelby and John McCain says that they want the carmaker to get protected against possible bankruptcy.

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In an interview with Fox News, McCain said: “I am of the view that GM should go for Chapter 11 and get re-organization to emerge as a better, more competitive and improved auto industry.”

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While Shelby says in an interview with ABC that the big three belong into Chapter 11 and afterward they should get money from federal for their reorganization process.


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