United States Senate Approves $25 Billion Automotive Industry Loans

The Detroit News is reporting that the United States Senate has approved a $25 billion dollar loan for the automotive industry to re-build factories and produce more fuel efficient vehicles. In a 78 to 12 vote, the bill is expected to be signed by President Bush before the current government's budget expires tomorrow. Talk about last minute, right? General Motors spokesman, Greg Martin, stated the loans "will help speed the transition to cleaner, more fuel-efficient vehicles". Automakers will have 25 years to repay the loans and have the choice to defer repayment for up to five years. The lay also states that since they feature sub-investment grade credit, for every $1 billion the manufacturers borrow, they will have to save more than $100 million. Ford Motor Company also made a statement regarding the loans, s is an important first step to providing access to capital for important investments in the future at a time when the capital markets are distressed".