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(CEP News)- The "Detroit Three" CEOs of Ford, General Motors (GM) and Chrysler were given harsh reception at the U.S. Senate Banking Committee hearing Tuesday night, where they begged for $25 billion to save their companies from bankruptcy.
Despite warnings from Ford CEO Alan Mulally that the U.S. economy could suffer terribly if automakers go under, Banking Committee Chairman Christopher Dodd concluded the hearing without words of encouragement to them: "I would like to say in the next couple of days this federal aid is going to happen. I don't think it is," he said. Dodd scolded the executives, saying they were "seeking treatments for wounds that I believe to a large extent were self-inflicted." During the hearing, the CEOs were demanded to disclose exactly how much money they would be asking for, revealing Ford would be asking for $7-8 billion, Chrysler for $7 billion, and GM for a heftier $10-12 billion from the government. GM CEO Rick Wagoner said the auto industry "needs a bridge to span the financial chasm that has opened up before us." Wagoner said allowing them to fail would be "catastrophic," resulting in more than 3 million jobs lost and "economic devastation." Mulally pleaded with lawmakers, saying they weren't asking for the money all at once but "as we need it." All three auto-makers said they have applied for loans that will help them produce more fuel-efficient cars. Chrysler CEO Robert Nardelli said bankruptcy was not a viable option, and that he was not confident his company could recover from such a move. By Megan Ainscow,
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