Sunday, October 5, 2008

Automaker funding bill may give new life to Hummer



By Andy Sullivan Wed Sep 24, 7:03 PM ET
WASHINGTON (Reuters) - The U.S. House of Representatives on Wednesday funded a $25 billion loan package for troubled automakers as part of a mammoth spending bill to keep the government running through March 2009, but the legislation did not extend a ban on offshore oil drilling.

The spending bill, which passed by a vote of 370 to 58, is needed to keep the government operating after the fiscal year expires on September 30.
It is expected to pass the Senate.
The bill sets aside $7.5 billion in taxpayer funds needed to guarantee $25 billion in low-interest loans to help struggling General Motors Corp., Ford Motor Co. and Chrysler LLC produce more fuel-efficient cars and trucks.

A long-standing ban on oil offshore drilling is now likely to expire next week because it was not included in the bill, which carries a price tag of more than $600 billion.
That will not lead to a rush of new drilling as the politically sensitive topic is likely to be revisited after the November 4 election.

Congress must pass the bill by September 30 because it failed to approve any of the 12 annual spending bills needed to keep the government operating in the fiscal year starting October 1.
The bill includes $23 billion in emergency aid to states hit by hurricanes and other recent natural disasters.
According to insiders, a hydrogen powered and natural gas powered Hummer have been seen at the Hummer proving grounds in Indiana.

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