Bush provides money for Detroit
19 December 2008

The US government has agreed to provide $17.4bn in loans to Detroit’s struggling car manufacturers, President Bush has announced.

The money will come from the White House-controlled Troubled Asset Relief Program – a huge fund originally set up to prop up Wall Street banks.

General Motors and Chrysler will get an initial $13.4bn with a further $4bn arriving in February. This should keep both companies in business until March.

Allowing the US car industry to fail would not be "a responsible course of action”, said President Bush.

Under the terms of the Bush Administration’s new plan, the car makers must demonstrate financial viability by March otherwise the loans will be immediately recalled.

The White House has been forced to come to the rescue of the car makers after the US Senate threw out proposals to offer federal loans to Detroit’s Big Three with strict caveats attached.

Ford has backed away from taking the government’s money. It says it can continue operating, provided the economic circumstances do not worsen.

Will Powell

Join the debate

Comments
11

19 December 2008

I think this story still has alot further to go...

19 December 2008

The soon to be replaced US President has to be one of the biggest wallies this world has ever had to suffer and just to prove it he has poured another $13.4 bn down the drain with more still to come ! So now we have to wait until March before the entire American motor industry goes t-t’s up !

Loving life in France with my Springers

19 December 2008

So Bush / Obama / Clown / Manipuleson think that the world will be great again in March 2009?? Giving that much money to two basically bankrupt companies in the forlorn hope that the economy recovers in 3 months to the levels where the consumer is going to just go out and buy buy buy. With firms laying off more and more workers.....hmmm, this is going to end in tears for the whole world.

:(

19 December 2008

Surely this is just a survival loan and a doomsday weapon for the management, they now have a few months to cut costs and probably the size of the companies drastically. Importantly they can go to the unions and demand layoffs, new productivity, working practices and pay scales with everyone knowing that unless they agree and it looks good on paper to the government, its lights out.

The union leaders won't look very impressive if they can be blamed for the termination of a national industry - and hundreds of thousands of assembly operators are all looking for jobs at the same time - no chance. Americans have shot a lot of people for a lot less.

19 December 2008

[quote The Apprentice]Importantly they can go to the unions and demand layoffs, new productivity, working practices and pay scales with everyone knowing that unless they agree and it looks good on paper to the government, its lights out. [/quote]

- not quite. At least, that was the reason last week the Senate voted against the loan as apparently the only way the UAW can be compelled to legally binding new(reduced) pay scales is through a judge sitting in bankruptcy proceeding, chaper 11 admin type of thing. Why last week's rule seems to no longer apply this week, well, being a realist, I would assume Wall Street's need to have a so-called Santa Claus stock markets rally off the back of a champagne cork-popping 'GM's saved' news headline outdid the need for a legal route to renegotiate wage agreements. Politics is all about who gets the dough, especially when it's somebody else's.

21 December 2008

This is just giving these companies a stay of execution. That thick twat Bush just doesn't want to be known as the president that killed of the American big three- it will now be Obamas thankless job to sort the whole thing out when his tenure starts, Hopefully it will kickstart the beginning of alternative cars such as hybrids but more importantly fuel cell cars like the Honda Clarity. I'm hoping for that but I'm not going to hold my breath

21 December 2008

[quote lambo1]Hopefully it will kickstart the beginning of alternative cars such as hybrids but more importantly fuel cell cars like the Honda Clarity. I'm hoping for that but I'm not going to hold my breath[/quote]

Please hold your breath. You can do it. Try to do it beyond the stage when your lips go blue.

22 December 2008

Nice to see it's not just 'the other place' where you are singularly incapable of getting along with others. Time for a long, hard look in the mirror...

22 December 2008

[quote 12th]

Nice to see it's not just 'the other place' where you are singularly incapable of getting along with others. Time for a long, hard look in the mirror...

[/quote]

Evening Jeff. I love it when people come on to a forum purely to criticise others of not getting along with people. The irony and hyprocrisy amuses me.

For those that don't know Jeff, he is a chap from another forum who perpetually keeps following me around. To anyone who will listen, he will regale you with tales of his business which apparently he feels the need to add that one day it will be worth enough for him to retire on. But it isn't now though so his cystal ball must be more effective than other people's ! It's likely worth tuppence ha'penny at the moment especially if he is as professional as I suspect him to be.

See you around Jeff. Now crawl back to your friends please. Say hi to to the other cocoa shunters Michael and Dan, won't you ?

23 December 2008

Ahhh, 12th, that would be the man who drives a very nice, expensive Audi, but lives on a Barratts estate. One of the saddest from the other forum.

Steve, is he stalking you?

Pages

Add your comment

Log in or register to post comments

Find an Autocar car review

Driven this week

  • Jaguar XF Sportbrake TDV6
    First Drive
    19 October 2017
    The handsome Jaguar XF Sportbrake exhibits all the hallmarks that makes the saloon great, and with the silky smooth diesel V6 makes it a compelling choice
  • Volkswagen T-Roc TDI
    First Drive
    19 October 2017
    Volkswagen's new compact crossover has the looks, the engineering and the build quality to be a resounding success, but not with this diesel engine
  • BMW M550i
    First Drive
    19 October 2017
    The all-paw M550i is a fast, effortless mile-muncher, but there's a reason why it won't be sold in the UK
  • Volvo V90
    First Drive
    19 October 2017
    The Volvo V90 is a big estate ploughing its own furrow. We’re about to see if it is refreshing or misguided
  • Kia Stonic
    First Drive
    18 October 2017
    Handsome entrant into the bulging small crossover market has a strong engine and agile handling, but isn’t as comfortable or complete as rivals