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Detroit's Showdown In Washington Underway

Last updated on Thursday, December 4, 2008

(WASHINGTON, DC) - Today is D-Day for Detroit.

GM CEO Rick Wagoner, Ford CEO Alan Mulally and Chrysler CEO Bob Nardelli were all on Capitol Hill this morning, after arriving in their own hybrid vehicles, asking Congress to approve an emergency loan program that could cost as little as $19 billion, and as much as $34 billion.

Our partners at Fox News report that, should the loan program fall through, they understand General Motors and Chrysler are willing to undertake some sort of pre-packaged bankruptcy option.

However, industry watchers in Detroit, in the automotive press, and in Washington believe that a Chapter 11 debt reorganization bankruptcy would ultimately lead to a Chapter 7 liquidation, or closing of doors, because consumers would refuse to buy from a bankrupt nameplate.

Right now, GM is requesting $4 billion before the end of the year to pay bills, $12 billion total by the end of March plus access to another $6 billion should conditions get worse.

Chrysler is asking for a straight-up $7 billion before the end of the year to keep their lights on.

Ford is asking for access to a $9 billion standby line of credit, which, they say, they would only need if either GM or Chrysler failed.

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