It’s Done, a $17.4Billion Bailout for US Automakers
December 19, 2008 by Cameron Wong
The US Federal govenment is getting into the car business. With this latest attempt to save the American auto industry, the Fed will partially own a stake in the Big 3.
What will this do for the future of American cars?
For the long term is this good or bad?
Will every American car soon look like FBI vehicles?
For the immediate future it is needed, but keeping an eye on the long term effects will be interesting.
Here’s what Debb Reichmann wrote in the Associated Press
WASHINGTON (AP) — Citing danger to the national economy, the Bush administration approved an emergency bailout of the U.S. auto industry Friday, offering $17.4 billion in rescue loans in exchange for deep concessions from the desperately troubled car makers and their workers.
The Feds would then have the option of becoming a stockholder in the companies, very similar to that of the major banks. That would somewhat nationalize the US auto industry.
A nationalized car industry, how will this effect local car dealers, if it does at all?
See the full AP article
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