David Kirkpatrick

December 22, 2008

Is the auto bailout throwing good money after bad?

Filed under: Business, Politics — Tags: , , , , , — David Kirkpatrick @ 1:29 pm

Probably.

From the link:

General Motors and Chrysler LLC are finally getting the money they need to avoid an imminent collapse. But will the bailout actually get them back on the road to profits?

The $13.4 billion in federal loans announced by President Bush Friday morning should be enough to get the automakers through the next few months. Then the fate of Detroit will become a problem for President-elect Obama and the newly-elected, much more Democratic Congress to tackle.

But this lifeline won’t solve the immediate problems dogging the entire U.S. auto industry. Tight credit and a weakening U.S. economy have left industrywide auto sales at their weakest point in 26 years.

Chrysler’s North American production is essentially shutting down for at least a month at the end of the day Friday due to weak demand for its vehicles. The North American assembly lines at GM (GM, Fortune 500) will be closed for the entire month of January.

Ford Motor (F, Fortune 500), which benefits from having more cash on hand than its U.S. rivals, only looks good by comparison. It is keeping 10 of its 15 assembly lines idle one week longer than the normal holiday shutdown.

1 Comment »

  1. When you go to get a mortgage they will take you through the last five years of your life with a fine tooth comb. They will ask you why you bounced a check, why a payment was late, where you received the lump sum money and where it went after that. When the tax payers involuntarily agreed to the $700 billion dollar bailout they were taken to the cleaners… Most don’t know that in the original $350. billion (loan) to the banks that there were hardly any provisions as to how they were going to spend it. The tax payers would not have agreed to giving money so the execs could go to the spa or let more people steal more identities from their account holders like in the below blogs. Bank of America one of the top two banks for identity theft. In the next one that is being wrestled with now the “Auto Bailout” there is a hidden raise for federal judges that was stuck in the fine print… I think we need to start fresh before they do any more damage without us agreeing or even knowing what we agreed to do…? Give me your thoughts

    http://o8justiceforall.wordpress.com/

    Comment by justiceforall — December 22, 2008 @ 1:44 pm


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