2013 Audi A3

White House promises no more bailouts for Detroit 3

 
3 624 views Jun 11, 2009

The U.S. government has given automakers and suppliers close to $80 billion in total

The U.S. government has given automakers and suppliers close to $80 billion in total

Enlarge Photo
With accusations and hyperbole that the U.S. government's bailout of the Detroit 3 is a clear step towards socialism, President Barack Obama's automotive task force that has been charged with overseeing the restructuring of GM and Chrysler has promised that the government will not be putting any more money into either automaker.

In total, the U.S. government has given automakers and suppliers close to $80 billion, and while the government claims that this money has given the companies a good chance to succeed while preserving American jobs, there is also the question of whether taxpayers should have to foot the bill for private enterprises.

The government defended its decision, stating that the public had a reasonable chance of getting a return on its investment. Furthermore, even if GM or Chrysler somehow manage to find themselves bankrupt again, the federal government believes that the bailout given will be the last money the two automakers will require - although it won't rule out the possibility of more bailouts in extremely extenuating circumstances.

As a major stakeholder in GM and Chrysler, the federal government finds itself in the tricky position of not wanting to run the business but also keen to see it succeed. As for how long the government plans to remain a major shareholder, Ron Bloom, a senior adviser to the automotive task force explained to the Associated Press that the situation will depend on the financial markets.

Despite obvious opposition from a number of angles, the White House has implied that without the bailout of GM and Chrysler the ripple effect of a complete bankruptcy of these two companies would have had profoundly negative effects on the U.S. economy.



Tags:
Posted in:
 
Contribute
Send us a tip Comment Contact the editor
Follow Us

 

Have an opinion?Join the conversation!

  • Posting indicates you have read this site's Privacy Policy and Terms of Use
  • Notify me when there are more comments
Comments (3)

  1. ma_brum08 avatar brum08 Posted: 6/11/2009 8:44am PDT

    It's kind of interesting to see it still referred to as the Detroit 3 or Big 3. Considering Ford has yet to take any of our money. I'd be kinda pissed if I was at Ford. They deserve distinction.
     
    Post Reply
    Vote
    Bad stuff?

  2. ma_mburleigh8 avatar mburleigh8 Posted: 6/11/2009 7:48pm PDT

    Lets hope not, we have wasted enough $ on them.
    maybe now they will wake up and smell the coffee,
    and build some good cars.
     
    Post Reply
    Vote
    Bad stuff?

  3. ma_PatrickInChicago avatar PatrickInChicago Posted: 6/11/2009 10:03pm PDT

    No more bailouts for auto companies! No, they're just going to sell off the military vehicle division of GM (Hummer) to China. Gee, I guess they've learned their lesson about making rash, stupid decisions, now, huh? This video has never been more true...

    http://ow.ly/dEgE
     
    Post Reply
    Vote
    Bad stuff?

 

Have an opinion?Join the conversation!

Connect with Facebook

Motor Authority. Now with your friends.

Discover stories your friends read.
Share stories more easily.
You control what you share.
Learn more

Research New Cars

Go!


More from High Gear Media

 
 
MotorAuthority
  • Follow Us
  • Twiiter
  • Facebook
 
 
© 2011 MotorAuthority. All Rights Reserved. MotorAuthority is published by High Gear Media. Stock photography by Homestar, LLC. Send us feedback.