Noirwomannews’s Weblog

November 14, 2008

Auto Industry in trouble..seeks $25 billion bailout!

Filed under: Finance,News,Politics — noirwomannews @ 3:07 am
Tags: , ,

The money keeps flowing for big business, GM, Ford, Chrysler and some of their smaller suppliers are looking to receive $25 Billion in another bailout plan, this time the plan aims to save the suffering Detroit auto industry.

 

There are times when one just doesn’t know what to say, such as when the taxpayers bailed out the financial industry with a $700 billion dollar investment, immediately following the deal high spenders at one  major company took a group of executives on a lavish retreat after getting part of the money. Not long afterward the same company took another group on a luxury hunting trip spending more of the money received to help them manage to keep the doors open to their ailing business.

 

This time its the auto industry in trouble, but this would not the first time the government has bailed out a dealership, back in 1980 Chrysler received 1.5 billion to prevent the company from going bankrupt and the Country’s economic situation during that time did not include a financial crisis with major banks closing in succession.

 

The recent federal rescue plan for the auto dealers is not connected to the Wall Street bailout, but it sure comes at the worst time allowing Americans to feel more pressure as again they are faced with worrying about the economic stability of banks, auto dealers and watch the government throw billions to these once viable industries while average Americans are losing homes, having cars repossessed and still facing lay offs as small businesses close their doors, and larger companies lay off workers in an attempt to preserve businesses.

 

The bailout has been in the works for over a year, the auto industry prefers to call it a government loan which will be split by the three Detroit dealers and some of their suppliers. Analysts have predicted that without the bailout of the industry the dealers would face severe problems which include running out of money and possible bankruptcy. The industry has suffered recently with the market down 20 percent. This information along with so many Americans losing jobs and the recent credit crunch issues make for major economic concerns that even the experts can’t predict a timeline for an ending with certainty.

 

The plan will allow for the industry to develop energy efficient cars, hybrids and other efficiency measures to supporting a green movement and new energy in the marketplace. Its also hoped that new jobs will be introduced as the dealers move toward this new marketplace. There are mixed feelings from both republicans and some democrats on approving yet another bailout, although most know the plan is needed some are wondering when will the bucks stop.

 

Advertisements

Leave a Comment »

No comments yet.

RSS feed for comments on this post. TrackBack URI

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Create a free website or blog at WordPress.com.

%d bloggers like this: