DETROIT, Michigan (AFP) — The head of Ford Motor Co. urged a swift resolution to the current impasse over a bailout of the US auto industry Tuesday, warning that the uncertainty is worsening the financial crisis.
"Obviously the debate in Washington has slowed down thawing the credit crunch," chief executive officer Alan Mulally said in response to questions from reporters.
Turbulence in the critical automotive industry is also "obviously part of the problem" with the broader economy, Mulally said, adding that "people don't seem to understand that."
General Motors and Chrysler have warned that they could run out of cash in a matter of weeks if they are not given access to billions in low-cost government-backed loans.
Ford has said it has enough cash on hand to survive the current economic downturn but requested a line of credit to hedge against further deterioration and the potential collapse of its supply base should either GM or Chrysler fail.
President George W. Bush said on Tuesday his administration was looking at all options for the troubled US auto industry and wanted to move in an "expeditious way."
A proposed 14-billion-dollar rescue plan for Detroit failed to win sufficient support in the Senate last week, with lawmakers trading blame with auto union chiefs over the collapse of the effort.
Mulally said he expects the US economy to show signs of improvement during the second half of 2009.
"It's going to be relatively flat in the first and second quarter and then start to come back in the third quarter," he said.
Ford is doing all that it can not to cut its product development plans despite an 8.7-billion-dollar loss during the first nine months of 2008, said Mark Fields, president of the Americas.
"We've been cutting costs but we've also protected our product plan," Fields told reporters attending a preview of Ford's plans for the Detroit auto show next month.
"We are also going to support all of our launches."
The automaker would not, however, offer any guidance about Ford's prediction for industry-wide sales in 2009 and warned that sales have weakened globally.
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