Congressman Sander Levin
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Detroit Free Press
July 25, 2008 |
Justin Hyde
Staff Writer |
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Low-interest Loan Plan for Carmakers Sparks Petition in U.S. House |
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Supporters of a $25-billion plan for low-interest loans for automakers and auto parts suppliers are circulating a petition urging U.S. House leaders to include the funding in any spending bill that may come from Congress next month.
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Meanwhile, Senate Democrats unveiled an energy proposal Thursday that included $1 billion to fund up to $6.5 billion in low-interest loans for automakers and auto parts suppliers, but that plan is unlikely to go far this week.
The moves suggest how Detroit automakers could benefit from the Congressional sparring over energy prices, as Democrats and Republicans attempt to build a record to show voters this fall.
In a letter to other House members circulated this week, Democratic U.S. Reps. Sander Levin of Royal Oak, and Dale Kildee of Flint, along with Rep. Betty Sutton, D-Ohio, ask colleagues to back $3.75 billion in funding for the program. That money would be enough to cover borrowing costs for about $25 billion and the risk of some defaults.
While House and Senate Democrats have raised the idea of a second economic stimulus plan -- the most likely carrier for such a proposal -- the Bush administration has opposed it so far, and the prospects are murky.
The loan program, created but not funded in last year's energy bill, would provide automakers and auto suppliers a cheap source of capital for engineering new vehicles and revamping old plants to build more efficient models.
The loans would be limited to 30% of the cost of any plant or technology program.
The Senate plan, cosponsored by Sen. Debbie Stabenow, D-Mich., was introduced as an amendment to a Democratic bill on energy speculation that's expected to fall short of the 60 votes needed to end debate.
In the proposal unveiled Thursday, the $1 billion would be spread over five years, from 2008 to 2013.
The amendment also included a passel of other oil-saving pitches, such as requiring all new vehicles by 2012 to include fuel economy gauges.
The UAW and some automakers have pressed Congress to back the program, and Democratic presidential hopeful Barack Obama has added his support to the plan.
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To Contact Congressman Levin: -
Email Congressman Levin In Michigan: 27085 Gratiot Ave, Roseville, MI 48066 | (586) 498-7122 | (248) 968-2025
In Washington: 1236 Longworth House Office Building, Washington, DC 20515 | (202) 225-4961
