Automakers plan to urge Congress to support funding up to $50 billion in low-interest loans over three years to help them modernize their assembly plants and develop next-generation fuel-efficient vehicles.Add the auto companies to the list with airlines and banks of companies who need you to help them out of their awful management and decisions. Seems when the marketplace has deemed you incompetent, unprofitable, and poorly run then those free market ideals don't really have much traction. That's when you need billions and billions in government bailouts to save your flagging brand from the dire straights you put it in.
Industry officials said the loans, which are twice the amount authorized in last year's energy bill, are a top priority when Congress returns next month because of the declining fortunes of Detroit's automakers and tightening credit markets.
Auto industry officials have argued that the loan program would not represent a bailout, but would be similar to aid lawmakers have given to Wall Street investment banks and struggling mortgage firms. They also note that auto companies face tens of billions of dollars in costs from new fuel economy regulations.
"We don't see it as a bailout. We see it as government assistance to help retooling tied to the production of these advanced technology vehicles," Reuther said.
It seems ample warning and ample time to change weren't enough for Detroit. Every other automaker seemed to handle the future quite well. But not Ford and GM, no they thought gas would always be cheap and there would never be any demand for fuel efficient cars. Everyone would drive SUV's forever and they wouldn't ever have to come up with a new idea again. Boo hoo. Poor them.
LET THEM FAIL. If they can't hack it, fine, some other car company will come in to fill the void. Sell the plants to Toyota or Honda, let them build cars here. Hey maybe a new automaker will start up, one that will actually know how to function properly as a car company. Who knows. But don't hand them a blank check and say "Sorry you messed up and were the only car companies unable to change, will this money make it better?" Let them fail. The market has deemed them irrelevant. Spend the $50 billion on mass transit. Bullet trains. Free hats. Anything else.