White House blocking $25b aid to automakers Agence France-Presse

Published: Saturday November 15, 2008





Print This Email This WASHINGTON (AFP)  The White House on Saturday firmly rejected pumping more aid into struggling US automakers out of the 700-billion dollars earmarked for an economic bailout plan earlier in this year.



"We want to see legislation passed at this week's lame duck session that uses existing funds intended for the automakers that will help them become viable for the long run," said White House spokeswoman Dana Perino.



She said the money allocated under the Wall Street bailout plan to help stem the economic crisis needed to be conserved for "its intended purpose, stabilizing and strengthening our financial system."



Democratic lawmakers are convening a special lame-duck session of the outgoing Congress next week in a bid to pass more measures to help shore up the country's faltering economy.



One proposal is to give the Big Three automakers -- Ford, Chrysler and General Motors -- a further 25 billion dollars in loan guarantees on top of 25 billion dollars already agreed on in September.



Perino said reports that the White House had conditioned its approval of any new aid to the carmakers on relaxing fuel efficiency requirements for the auto industry were not true.



"That is false -- the president proposed these efficiency standards, Congress enacted them, and we're in the process of implementing them. We are not proposing relaxing them."



The September handout for the auto industry is aimed at enabling manufacturers to develop more fuel efficient vehicles more in line with the changing needs of today's market.



"We are urging Congress to choose a path that would help automakers that are willing to take measures to prove viability with a program that's already approved, and not pursue a path that won't make it out of the Senate," Perino added.



