Video: Governors urge treasury to help automakers

updated 10/30/2008 5:34:45 PM ET 2008-10-30T21:34:45

The governors of six states have asked the treasury secretary and Federal Reserve chairman to take "immediate action" to help the troubled domestic automakers.

General Motors Corp. and Chrysler LLC are in talks to combine in order to survive, but financing is one of the biggest obstacles.

GM is lobbying the Bush administration and some members of Congress for $10 billion to $15 billion in aid to help keep the company going and possibly to make the Chrysler deal work. GM could use some of the money to shut down redundant Chrysler operations.

In their letter, the governors of Michigan, Delaware, Kentucky, New York, Ohio and South Dakota reminded Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke that the domestic automakers are "particularly challenged" in the down economy and warn that, "as a result, the financial well-being of other major industries and millions of American citizens are at risk."

"The auto industry; their network of suppliers, vendors, dealers and other businesses; and the communities that rely on those businesses face unimaginable challenges — challenges we urge you to help address," the governors wrote. The letter, sent Wednesday, was released Thursday by Democratic Michigan Gov. Jennifer Granholm's office.

White House spokeswoman Dana Perino said Thursday that the secretaries of the Treasury, Commerce and Energy departments are talking with the automakers.

Copyright 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Discuss:

Discussion comments

,

Most active discussions

  1. votes comments
  2. votes comments
  3. votes comments
  4. votes comments

Data: Latest rates in the US

Home equity rates View rates in your area
Home equity type Today +/- Chart
$30K HELOC FICO 5.03%
$30K home equity loan FICO 5.68%
$75K home equity loan FICO 4.87%
Credit card rates View more rates
Card type Today +/- Last Week
Low Interest Cards 13.42%
13.42%
Cash Back Cards 17.94%
17.94%
Rewards Cards 17.15%
17.15%
Source: Bankrate.com