Auto Industry saved?
The AP is reporting that a bailout plan for the beleaguered “Big 3” in US auto manufacturing could get some of the money they requested in order to balance the books for the time.
However the proposed package is only $15 million of an already existing $25 million federal fund for retooling and restructuring within the industry and would be inadequate in my opinion to do more than potentially save them until Obama takes office in January due to the amount of money that is literally hemorrhaging out of an industry in which sales have dropped 30-40% and was at it’s best, ineffective.
Conditions such as the need to conform to a new “Car Czar’s” steps towards greater efficiency are indeed a good thing as it means they will be responsible for the money they receive but when you consider that the report is out on the 1st of the year, there are quite a few days in which the Big 3 will have to deal with an unsympathetic GOP president before the next president elect takes office and could literally destroy any positive work done by the congressional Democrats.
Considering what I said earlier about the cost to the economy if these were to go into bankruptcy, lets hope that they can hang in there until Bush has been out of the White House a comfortable amount of time.