New book by Larry Connors Click here Improve your trading - See how
The loans are the first from the program launched last year by Detroit automakers to cushion the financial demands of converting plants and engineering new models for better efficiency. Congress has granted up to $25 billion so far, but automakers and Michigan lawmakers have pushed to double the amount available to $50 billion, a step President Barack Obama supported as a candidate.
The announcement will be made by U.S. Energy Secretary Steven Chu at Ford's headquarters in Dearborn at 10:30 a.m. The administration said earlier this year it would award $10 billion in loans this year, with the remainder awarded next year. The money would be sent to automakers and suppliers as they hit certain milestones.
Of the three companies, Ford stands to receive the largest share of the loans; it had asked for up to $11 billion. Under the program, the administration is required to give priority in retooling money for factories that are at least 20 years old, and the money can only be spent on engineering work in the United States.
The loans can also only cover a portion of the costs for building new models.
Due to their bankruptcies, General Motors Corp. and Chrysler didn't qualify for the first round of loans, which the U.S. Energy Department has ruled can only go to "financially viable" companies. GM's financial plans filed as part of its bankruptcy forecast the automaker will receive $5.7 billion in retooling loans from 2010 to 2013.
Chrysler's bankruptcy forecasts call for the automaker to receive $6 billion in loans.
Some 75 companies had requested $38 billion in loans as of the end of 2008. House Democrats have proposed doubling the program to $50 billion as part of a broad bill limiting U.S. greenhouse gas emissions, but auto industry supporters may attempt to attach the increase to another bill.
Contact Justin Hyde at 202-906-8204 or jhyde@freepress.com
To see more of the Detroit Free Press, or to subscribe to the newspaper, go to http://www.freep.com Copyright (c) 2009, Detroit Free Press Distributed by McClatchy-Tribune Information Services. For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302
© Copyright 2009 The Connors Group, Inc.
