Bush signs $25B auto loan bill
President Bush signed a $634 billion spending bill Tuesday that includes funding for $25 billion in low-cost government loans for the auto industry.
The landmark loan program will allow automakers to borrow money to retool plants to build advanced technology vehicles that are at least 25 percent more fuel efficient than currently required.
The landmark loan program will allow automakers to borrow money to retool plants to build advanced technology vehicles that are at least 25 percent more fuel efficient than currently required.
The program gives preference to plants at least 20 years old and sets aside 10 percent of the funds for companies with 500 or fewer employees — such as startup electric carmakers and some suppliers.
"We commend the Congress and the President for their action at a critical time in the auto industry's transformation," GM spokesman Greg Martin said late Tuesday "Now, we need the rulemaking process to keep pace with the urgency in which we're developing new technologies."
Bush signed the bill Tuesday evening and issued a written statement but did not specifically mention the auto loans, reflecting a split among his advisors on whether to back funding for the program. The White House ultimately refused to take a position.