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Levin supports $50 billion in direct loans for automakers
Levin's Republican rival supports a program authorized in last year's energy bill which OK'd up to $25 billion in loans to automakers over five years -- a program that would cost $3.75 billion. But Congress has yet to provide any money to actually fund the program and the White House hasn't said if it would back the effort. The direct loans would be payable over 20 years and the government could opt to defer all payments on the loans for five years. Because Detroit's Big Three automakers have subinvestment grade credit, the package would allow them to borrow money at the lowest available interest rates -- saving them more than $100 million on every $1 billion they borrow. They -- and suppliers -- could use the money to retool older factories to build advanced technology vehicles like hybrids and plug-in electrics. The top lobbyists for Detroit's Big Three automakers are at the Democratic National Convention in Denver, among other auto lobbyists, trying to drum up support for the plan. Michigan members of Congress have been talking about ways of pushing the package when Congress returns in September. You can reach David Shepardson at (202) 662 - 8735 or [email protected].