The Detroit’s big automakers have been trying to persuade Congress to speed up funding for $25 billion in subsidized loans to help retool their old plants. Before the Congress adjourns on September 30, the Detroit’s lobbyist wants the funding approved. The industry’s deteriorating state; they say they need an extra $25 billion and all to be lent at low rates of 5%.

The team flew in from Detroit and Washington and intent on using the conventions myriad reception, lunches, parties, and meetings to make the case for the loan program to as many members of Congress. Ziad S. Ojakli group vice-president for government and community relation at Ford Motor says “This issue is white hot” and “We are focusing on it like a laser.”

According to Greg Martin the General Motors’ Washington spokesman, the engineering and plant-retooling costs required to meet those standards will run to some $100 billion. Congress agreed to provide low-cost loans but has not approved the funds. Detroit needs fast access to cheap capital or the industry’s woes will deepen said Ojakli. He argues that it is critical to the U.S. to keep auto manufacturing alive as it is to support the country’s financial system with aid to troubled banks.

Rick Wagoner chairman of General Motors Corp. will make the case for up to $50 billion in federal loans to the auto industry at a U.S. Senate energy summit. The summit will be on September 12 and was pushed by a bipartisan group of senators hoping to break a logjam around energy in Congress. The Democrats and Republican Party have hammered each other over who’s to blame for rising energy prices and what should be done to relieve them.

Group of senators unveiled an energy bill in July that included $7.5 billion in loans for automakers and parts suppliers to retool. Six other senators have signed on as supporters and Senate leaders approved the idea of an energy summit.

The maker of automotive parts and building climate-control system, Johnson Controls Inc. said it will pare production and cut an unspecified number of jobs and resulting in costs of as much as $500 million. Johnson Control Inc. also said it expects to complete most of the cost-reduction effort by early 2010.

The Chrysler LLC has been demonstrating plug-in hybrid prototypes to some dealers that are further developed than those previously shown by the automaker. The vehicles are being developed by Chrysler’s Envi unit and which the automaker created last year to create electric vehicles and other advanced propulsion technologies, said Chrysler Vice Chairman and President Jim Press.

The White House said it was in discussions about a proposal to give the auto industry $25 billion in government-issued low-cost loans and a sign that automakers may be making progress in their effort to get financial assistance.

Dana Perino the White House spokeswoman said “it’s something we’re aware of and we’re talking to the members of Congress and also the people in the auto industry, and thinking about what they might think would be required from their perspective.” Dana Perino said she was not prepared to say what funding amount “the White House would or would not support.” She also said the White House may say whether it supports the proposal in the next day or two.

Energy bill that was signed into law by President Bush included a provision to provide $25 billion in direct loans to automakers but the bill didn’t allocate any funding and it would cost $3.75 billion to guarantee that money. Detroit’s automakers and the United Auto Workers argue a $50 billion package may be necessary and which would cost $7.5 billion to guarantee. Automakers could use the money to retool plants to build advanced technology vehicles that were at least 20 percent more fuel-efficient than the minimum required

Obama is running advertisements tweaking McCain’s support of the smaller package and Michigan is an important state in the presidential election. Barack Obama is the Democratic presidential nominee that has endorsed the $50 billion package and while his Republican rival John McCain endorsed the $25 billion package.

The U.S. automakers is still dependent on pickups and sport utility vehicles and likely gave up more of their home marker again as their shrinkage eclipsed that of Japan’s car focused Toyota Motor Corp. and Honda Motor Co.. General Motors Corp. and Chrysler LLC probably led a drop in U.S. auto sales last month as new buyer incentives failed to stem an industry slide that began December.

August rate was 13 million based on a survey of analysts and economists. Offering employee discounts to all customers and no-interest loans may have kept results from falling to July’s 15-year low, when new vehicles sold at an annual rate of 12.6 million and a decline would extend the industry’s slump to nine months.

Jeff Schuster, chief of global forecasting for consumer research firm said “we would expect things to be worse for the month if it were not for the significant incentives.” General Motors the largest U.S. automaker is probably will say sales slid 29 percent and while Chrysler’s may have plunged 34 percent and Ford Motor Co.’s by 21 percent based on the 5 analysts’ estimates.

George Pipas sales analyst of Ford said “we’re in a very difficult period right now,” and also said Dearborn, Michigan-based Ford’s sale is likely to be close to July’s 15 percent decline. Automakers had to contend with the weakening U.S. economy. The Labor Department will say Sept. 5 that August non-farm payrolls fell by 75,000 jobs.

Barack Obama will renew his sales pitch to voters for the 2009 model Obama administration and Detroit automakers are among those, in his fourth visit to Michigan. Obama used Detroit’s foibles as a rallying cry for reform during the Democratic primary, making his critique a standard part of his stump speech. Obama has launched a charm crusade toward the industry that powers a key swing state, since clinching the nomination.

Obama’s visited assembly plants, meet with chief executives of General Motors and Ford and talked up the companies’ new technology. Obama was ready when automakers and suppliers began seeking funding for up to $50 billion in government loans in July. Michigan’s Democratic lawmakers, including Rep. John Dingell meet with Obama to give him their advice and while the UAW threw its support behind Obama touting his record on trade and health care.

Obama had proposed a similar program last year as part of his fuel economy program and sided with automakers while McCain rejected the idea. The idea appeals to Michigan voters and helps Obama to a 46% to 39% lead in the Detroit Free Press/Local 4 Michigan Poll conducted last month. The campaign touts the loans in a Michigan specific TV ad, following Obama’s pledge Thursday to “help our auto companies retool so that the fuel-efficient cars of the future are built right here in America.” The automakers’ three top executives General Motors Chairman Richard Wagoner, Ford Chief Executive Alan Mulally and Chrysler Chairman Bob Nardelli have not contributed to the election.

Automakers were “deserving” of as much as $50 billion in government-backed loans so that they can build more fuel-efficient cars, said a top General Motors executive. Robert A Lutz vice-chairman of General Motors said the car companies need money to retool their plants but probably cannot raise enough capital on their own because of the tight credit markets. Lutz also said the automakers have already made considerable progress in transforming themselves and that the government should help them proceed faster.

Lutz told reporters at an event near Chicago where General Motor showed off it 2009 line up that “The American auto industry is deserving of government loan guarantee,” “We have done a whole bunch of things that people said, ‘Why aren’t you doing this?’” Automakers and along with the United Automobile Workers union and lawmakers are urging Congress to appropriate $3.75 billion to back the $25 billion in loans authorized last year.

Detroit carmakers have announced plans to revamp numerous truck plants so that they can build the smaller cars and crossover vehicles. Costs of each conversion are ranging from $75 million at a Ford plant. Sales of pickups and SUVs plummeted this year as gasoline prices climbed above $4 a gallon in much of the United States. Automakers have been offering substantial discount on some models and shutting down plants that make them to keep inventories from growing larger. July, large SUV sales were down to 42% and full size pickup trucks sales declined to 28%.

This I found in the web that may interest you and give you information about automakers.

WASHINGTON (AP) — Automakers plan to urge Congress to support funding up to $50 billion in low-interest loans over three years to help them modernize their assembly plants and develop next-generation fuel-efficient vehicles.

Industry officials said the loans, which are twice the amount authorized in last year’s energy bill, are a top priority when Congress returns next month because of the declining fortunes of Detroit’s automakers and tightening credit markets.

“The amount of concern and urgency from the Detroit companies has increased in the last month and significantly ratcheted up what they’re communicating what their funding needs are,” said Alan Reuther, legislative director for the United Auto Workers union.

Congress authorized $25 billion in low-interest loans in last year’s energy bill, but the auto industry’s allies in Congress have been unable to get funding for the plan.
The loans would provide low-interest credit for up to 30 percent of the cost of retooling facilities to build hybrids, plug-in hybrids, electric cars and other alternatives.

Detroit’s automakers have struggled this year amid a sluggish economy and consumers shunning large sport utility vehicles and trucks because of high fuel prices. General Motors Corp. reported a second-quarter loss of $15.5 billion and Ford Motor Co. reported an $8.7 billion loss.

The auto industry’s future has been a top issue in Midwest battleground states key to the presidential race. Sen. John McCain had opposed the retooling efforts, arguing that his $5,000 tax credits for consumers who buy fuel-efficient vehicles and a $300 million battery prize would accomplish the same goal.
But in a statement released Friday, the Arizona Republican said Congress should fund the loan program in the energy bill: “I believe we should fund it and take action that will assist Detroit and its suppliers in making it through this difficult time of transition.”

The UAW, which has endorsed Democratic rival Barrack Obama, has pushed lawmakers to fund $25 billion in low interest loans for Detroit automakers to help cover retooling costs. Automakers have embraced the idea in recent months as a vicious economic downturn has shut their access to traditional financing. The UAW President Ron Gettelfinger critizized Republican presidential candidate John McCain on Monday for opposing government loans for Detroit automakers, saying John McCain “has slammed the door on any real support for the domestic auto industry.”

In McCain’s visit to Michigan last week he said such loans would not be prudent, adding he was worried about predicting failure on the part of automakers when they have made strides on things like labor agreements. He has proposed a $300 million prize for battery research and a $5000 tax credit for consumers who buy fuel efficient vehicles.

McCain said he was open to more direct aid for Detroit’s automakers, an opinion piece printed in the Detroit News. McCain’s proposals would do little to return jobs said Gettelfinger. Obama has backed a UAW proposal for Congress to approve $4 billion this year that would cover the costs for lending $25 billion, a plan that faces many hurdles to passages

Brazil’s automakers’ association said that they expect car sales to slow in the second half of the year after July’s spike in sales. Anfavea, the auto manufacturers’ association, pointed to the rising costs of consumer loans as a reason for the anticipated slowdown. Domestic sales grew even more with 288,100 vehicles and an increase of 32.6 percent year-on-year and 12.6percent over June. Anfacea said; just over 320,000 cars rolled off assembly lines in July, up 19.8 percent over the same month a year earlier and 3.5percent more than in June.

Toyata Motor Corp will invest between $600 million and $700 million to build a new plant in Brazil to keep up with the surging demand. With interest rates on the rise, automakers expect demand will ease in coming months. Higher wages and cheaper credit have pushed up car demand and are fueling economic growth of around 5 percent. Anfavea expects by the end of the year the output to total 3.43 million vehicles from 2.01 million units at the end of July. That is a reduction from 287,000 units per month on average through July to 210,000 units per month for and fro the remainder of the year.

Brazil has become a major market for several international manufacturers. The central bank has increased its benchmark Selic rate by 1.75 percent points this year in an effort to help curb rising inflation. In Brazil, around 90 percent of all new cars sold are equipped with flex fuel engines, which run on either gasoline or cane based ethanol. The country’s car market is dominated by automakers such as Italy’s Fiat, Volkswagen in Germany, Ford Motor Co and General Motors Corps and followed by Japanese and French manufacturers.