WASHINGTON -- U.S. automakers will be able to modernize their plants to build more fuel-efficient vehicles thanks to Uncle Sam.By as early as next spring, GM, Ford and Chrysler will be able to tap into a $25 billion low-interest line of credit from the government. The Energy Department will parcel out the 25-year loans approved by Congress Saturday as part of a giant spending bill. The department said it will take at least six months and possibly up to 18 months to get the program running. Car companies said they'll use the money to offer a broader array of gas-electric vehicles, more fuel-efficient engines and plug-in electric cars that could be on the market within two years.
The loans are expected to carry an interest rate of around 5 percent, considerably lower than they might otherwise have to pay.Cars.com reported that Sens. John McCain and Barack Obama’s spokespeople said the candidates want to speed up the loans, which the automakers say they need much sooner than 2010.
Federal Loans To Automakers Could Flow In 6 Months - Automotive News Story - WCVB Boston
"... to subsidize the retooling of plants and development of technologies to help U.S. carmakers to build cleaner, more fuel efficient cars. The 78-12 vote sent the $634 billion measure to President George W. Bush, who was expected to sign it ... oil companies won elimination of a long-standing ban on drilling off the Atlantic and Pacific coasts as the Senate passed a sprawling spending bill Saturday "
Spending bill OKd with billions for automakers -- chicagotribune.com
(read the rest of the article to learn more about the budget)
On Saturday, Congress approved a $25B package for U.S. Automakers
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