Are you willing to write a check for $874 to keep GM and Chrysler from going bankrupt? According the Detroit Free Press, after you add up all the billions that the auto industry is requesting, the number that pops up on the calculator is $97.4 billion – that’s equal to $874 from every U.S. household.
But that’s not where it will end. Analysts and experts (and we highly doubt you needed them to tell you this) say that more requests are inevitable if consumers don’t start buying new vehicles. Analysts also question how long Ford can last without government help. The Dearborn automaker spent $5.5 billion in cash in the last three months of 2008.
The $97.4 billion includes a request for a total of $39 billion from General Motors and Chrysler LLC, $25 billion being sought by suppliers and another $25.4 billion in retooling plants to pump out more fuel-efficient vehicles.
According to White House spokesman Robert Gibbs, President Barack Obama “understands that whether it’s financial stability, whether it’s banks and the lending system, whether it’s the auto companies, there can’t be a bottomless pit to this.”
Source: Detroit Free Press