US president ready to offer £469bn to ailing manufacturers
12 December 2008

The White House could step in to save America’s collapsing car industry, it emerged this evening.

President Bush has suggested that he’s ready to offer car-makers access to a £469 billion rescue fund that was meant to prop-up Wall Street.

Pulling an astonishing handbrake turn over the issue, Bush is set to allow General Motors and Chrysler access to the Troubled Asset Relief Programme (TARP).

Set up in October, it is money that has been underpinning some financial firms and banks. Until now, the White House has opposed industries having access to the £469 billion pot.

But it’s understood that the very real spectre of huge job losses has forced the outgoing President’s hand.

"A precipitous collapse of this industry would have a severe impact on our economy, and it would be irresponsible to further weaken and destabilize our economy at this time,” said a White House spokesman.

TARP allows Washington to use taxpayers money to take a stake in struggling firms. The firm is then expected to repay the money over time.

If Bush offers the car-makers some of the fund it is likely to open the floodgates to other struggling industries and companies.

There would be none of the restrictions on car-makers that were associated with rejected $14 billion House of Representatives bill.

White House whips had warned senators that Bush could offer this unprecedented lifeline before they voted against the $14 billion bailout plans last night, although it was widely believed this move was unlikely.

Industry analysts believe that Chapter 11 bankruptcy protection (another option being considered for GM and Chrysler) would not help the firms, because customers would be reluctant to buy cars from manufacturers with such uncertain futures.

Will Powell

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Comments
4

12 December 2008

Brinksmanship central.....!!! what a game of chess!!.....plots, sub plots (overseas and homeland)......Volvo and Saab now got funding.......the EU has put up funding which covers motors and construction.......and then after those......(not before!) the US auto firms will most likely get unconditional funding as part of the bail out!!

Uncle Sloan (GM related....please correct if incorrect!!!), Uncle Henry and Uncle Sam.......I take my hat off to you!! awesome!...truly awesome! (a strategic master piece)........a play of epic proportion.......

12 December 2008

[quote Autocar]to allow General Motors and Chrysler access to the Troubled Asset Relief Programme (TARP).[/quote]

America is a TARP.

Not long now till soup kitchens and tent cities. Still, they've Hollywood to fall back on, right? Maybe they'll CGI an auto industry.

12 December 2008

It's a house of cards for sure...


13 December 2008

It was bound to happen wasn’t it ? One of the worst and most incompetent jokes of an outgoing American President, who has always liked getting his way and who hates ever being overpowered by the Senate or Congress is now going to use the TARP fund for a head in the sands ostrich of an industry that doesn’t deserve any funding whatsoever. Well let’s clarify that, Ford possibly do warrant receiving some funding because on the world market they are trying to make amends for their woeful American product base, to a lesser extent the same can be said about GM but as for Chrysler, they don’t deserve to receive anything! I am sorry but TARP should be rewritten as PRAT and that is what the outgoing President most certainly is !!

Loving life in France with my Springers

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