News & Resources

Auto financing program avoids budget ax

Oct 12, 2011 Randy Mosteller

Analysts have been hard-pressed to find any sort of legislative action in Washington these days. But a recent last-minute bill to provide aid for disaster relief and avert a government shutdown was passed this week, and to the satisfaction of many auto consumers. Lawmakers has originally planned to cut funding to an auto loan program responsible for an estimated 40,000 American jobs. It has been used to help auto manufacturers and their suppliers improve fuel efficiency on cars and trucks. Because of the loans, a number of jobs at Ford, General Motors and Nissan will not be outsourced to foreign producers, according to the Daily Tribune. U.S. manufacturers will also be able to begun begin production on more fuel-efficient and electric vehicle in domestic plants. "I'm pleased that the Senate passed a bill which protects auto jobs and provides needed disaster assistance relief," said Michigan Representative Gary Peters. However, the measure may not survive long, as the bill's passage has allowed for a temporary reprieve on scaling back the auto loan program.