Washington Says US Automakers Should Not Dip Into $700B Bailout Funds

As lawmakers were returning to a lame duck session to focus on the troubled industry, President Bush's chief spokeswoman issued a statement saying the administration "does not want U.S. automakers to fail." She complained that reporting on the White House's on this issue has involved "attempts to shorthand the administration's position."

Perino's early morning statement also made clear, however, that the administration steadfastly opposes drawing funds from the bailout plan to help Detroit. She said the $25 million that Democrats favor taking from the rescue plan should come, instead, from a Department of Energy program previously approved to develop fuel-efficient vehicles.


 

mini22 - 11/17/2008 5:24:40 PM

+1 Boost

Well if GM decides now to go into chapter 11 it will be interesting to see how many people will still buy their cars.The unions will be totally gone assume.

woood - 11/17/2008 11:32:02 PM

+1 Boost

People will still buy their cars. Question is, will executive bonuses and dividends still be paid?

Whelan - 11/18/2008 9:03:34 AM

+1 Boost

How about the government purchases $25 billion worth of cars already on the lots for sale. Then lotto's them off to the people by using their SSN's. A quick check to make sure they are legal citizens, and your good.

This gives the auto industry in the US profit on products that are not selling. Then they can hash out their internal issues separately. If their product is cars and that is where the bottom line profit comes from, and you are not selling cars. Then why continue to make cars that people are not buying. This way they can take the money from profit and drop it into creating better vehicles that are more appealing.