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Text size [+][-]  Saturday March 20 2010GLOBAL EDITION

Considered view
02 Dec 2008 22:41

Teaser loan

Context News

December 2 is the deadline for the US automakers to present their cases for Federal aid. Ford is the first company to do so. It asked for $9bn of ten-year loans at government borrowing rates.

GM asked for $12bn of term loans and a $6bn line of credit. It hopes to draw down $4bn of the term loan in December. GM says it will fully pay back the term loan by 2012 if industry demand adheres to its projections.

The Big Three also released November sales figures today. Ford sales dropped 30% compared to the same month in 2007. GM’s dropped 41% and Chrysler’s 47%.

 

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If Ford’s plan, the first presented, is any indication, the automakers’ second turn at the trough isn't very encouraging. The best-off of the Wobbly Three wants $9bn worth of 10-year loans at the government’s borrowing rates. That’s outrageous.

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More stories by:  Robert Cyran






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