Obama: We’re willing to provide the auto industry additional aid, with conditions

Posted: Mar 26, 2009
Filed under: Chrysler, GM, Industry News

President Barack Obama said today that the U.S. must help American automakers. He said that while his administration is willing to provide additional aid, the auto industry must be willing to face tough conditions under which those loans will be provided.

“We will provide them some help,” Obama said in response to a question during a town-hall meeting at the White House. “If they’re not willing to make the changes and the restructurings that are necessary, then I’m not willing to have taxpayer money chase after bad money. And so a lot of it’s going to depend on their willingness to make some pretty drastic changes.”

Obama said that the auto industry has been mismanaged for several years and that workers, shareholders, bondholders, dealers and suppliers will all have to make sacrifices.

Obama’s latest comments are the strongest hint yet from the U.S. government that General Motors and Chrysler could receive additional aid. The two automakers who have already received $17 billion are requesting an additional $22 billion.

- By: Omar Rana

Source: Detroit News

 

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  • zermatt
    There is no doubt that the government is going to give GM & Chrysler more loans. This may or may not be good.

    The team that the government has assembled to evaluate the auto industry has no experience in the industry. I would have expected that at least one or two key members would have had some industry experience that would make for informed decision making.

    What the committee does have is a large contingent of Greens, union advocates and former campaign workers.

    As Rahm Emanuel likes to say that a crisis is a terrible thing to waste and this is a great opportunity for the Greens and labor to get what they want.

    This will be social re-engineering of the auto industry and it will not be good for car enthusiasts.

    The bottom line is GM & Chrysler are lost and the enthusiast's only hope is a strong Ford Motor Company. Support Ford products.
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