Feds to lend $13.4 billion to automakers

Feds to lend $13.4 billion to automakers

www.cnn.com

"Allowing the U.S. auto industry to collapse is not a responsible course of action," President Bush said Friday morning.

"The terms and conditions of the financing provided by the Treasury Department will facilitate restructuring of our domestic auto industry, prevent disorderly bankruptcies during a time of economic difficulty, and protect the taxpayer by ensuring that only financially viable firms receive financing," according to a statement released by the White House.

An additional $4 billion may be available in February, the Bush administration said.

The loans are designed to stabilize U.S. automakers through March 2009, at which time the automakers must show they are financially viable.

(visit the link for the full news article)

I don't know if it's just me but I'm not getting a good feeling about this. I work in the auto industry and it's amazing to see how everyone is walking around with blinders on. So many people are happy to hear this news but when I point out that "The loans are designed to stabilize U.S. automakers through March 2009, at which time the automakers must show they are financially viable." If they can't show they are viable by then, your government will request the money back but how do they expect to get it back when I'm sure the execs will have given themselves lots of bonuses and stashed or wasted the money and the actual company have no money and will in all intense and purposes be bankrupt.

Just my take on it. No matter how much money all these companies get, it's not going to stimulate people to buy cars when they have no money to get cars and banks still won't give loans to get cars. How is this suppose to help the average joe? Oh yah, forgot, it's not suppose to.

www.cnn.com
(visit the link for the full news article)

Please add to existing thread: Here

Closed.