LATEST FROM OUR BLOGS

» More

- 3 Safe Investments That Let You ‘Sleep Better:’ Strategist

MORE HEADLINES

» Markets | Economy | Companies

- US Recovery to be Weak, Erratic: Top Fed Officials

BEHIND THE WHEEL VIDEO

» More

Car Imports Widen UK Trade Gap

17 hrs ago

The UK's trade deficit widened to an eight-month high in September as the number of imported cars rose sharply. Neil MacKinnon from VTB Capital spoke to CNBC about the outlook for the UK and sterling.

The Nikkei Business Report

09 Nov 2009

The Nikkei 225 finished up 0.2% at 9,808 Monday, but volume was down at a 6-week low. Fast Retailing, Suzuki Motor, and Kubota were top gainers, but major power companies were among the hardest hit. Makiko Utsuda from The Nikkei has more.

Fiat's 5-Year Road Plan for Chrysler

05 Nov 2009

Fiat said its 5-year road plan to turn around Chrysler will result in the doubling of revenue. "There is no alternative but for Chrysler to be ambitious at this point," Stefano Aversa, co-president of restructuring specialists Alix Partners, said Thursday. "They have plenty of cash."

Ford's Safer Seatbelt 05 Nov 2009
Ford is unveiling its groundbreaking seat belt. CNBC's Phil LeBeau has the details.

Chrysler's Rebirth

05 Nov 2009

Chrysler is kicking off its rebirth and hoping its new game plan will please the government as well as the industry. Mike Jackson, chairman and CEO of AutoNation, shares his insight.

RSS FEED

» Help

Subscribe to this RSS feed
Stay up to date with Behind The Wheel.

CNBC ON DIGG

Behind The Wheel

Text Size

Dec.05

8:52 AM ET

Friday, 5 Dec 2008

Congress And Automakers: Long And Difficult "Marriage" Ahead

Posted By:Phil LeBeau

Topics:CEOs and CFOs | Economy (U.S.) | Economy (Global) | Automobile Industry

Sectors:Automobiles and Parts

Companies:General Motors Corp | Ford Motor Company

Alan Mullaly, Robert Nardelli, and Rick Wagoner
AP
Alan Mullaly, Robert Nardelli, and Rick Wagoner
If you watched the Big 3 CEOs on Capitol Hill Thursday you probably came away with two impressions. First, the contrite tone of the CEOs makes it clear the auto makers know they have to try a more humbled approach.

Second, despite all the skepticism that the Big 3 can not fix their companies, there is a realization in Washington something must be done to keep GM and Chrysler from filing for bankruptcy by the end of the month. So, for the CEOs this is a good news/bad news situation.

The good news is they will get some money from Washington. They will not be allowed to slide into bankruptcy.

The bad news is this lifeline from Congress will not be everything the Big 3 wants and likely will include even more conditions than the CEOs really want. If they don't like that, too bad. At this point they have no choice but to jump through whatever hoops Washington sets up.

Will there be some loan guarantee board? Yes. Will there be deadlines and financial benchmarks every few months the auto companies have to meet to get the next round of money? Probably. Will the Big 3 be forced into becoming the Big 2 with GM acquiring Chrysler as some Senators suggested Thursday? Perhaps.

GM, Chrysler Are Open to Merger If Part of Bailout

The bottom line is the Big 3 have more to do before they get the bailout and this looks like a messy situation that will not be completely worked out by the end of this year. This is just the beginning of a forced marriage between Washington and Detroit that will drag on for months, if not years.

_____________________________________
Click on Ticker to Track Corporate News:

- Ford Motor [F Loading... () ]