Automakers Get Bush Bailout With Strings Attached
President Bush has thrown General Motors and Chrysler a financial lifeline that is designed to force them to either restructure voluntarily or do so under "organized bankruptcy."
In essence, automakers and the union have three months to get their act together. If they don't, the fed will force repayment of $17.4 billion in government loans and force the companies into Chapter 11 bankruptcy.
At an announcement this morning (Dec. 19, 2008) President Bush said: "The American people want the auto companies to succeed and so do I." He cited the failure of the Senate to pass a bill before going on recess as the reason for the administration stepping in to provide emergency money to Chrysler and GM that will tide them over for the next three months. Ford Motor has said they do not need financial help.
The move hands the crisis to incoming President Obama but gives auto companies and the union time to work out reforms that will save them from total collapse. However, in the recent past, the autoworkers union refused to offer wage and benefits concessions demanded by some members of congress in exchange for a loan package. It's unclear today what impact the president's demands will have on the union.
The bottom line is this: Chrysler, GM, and the union will have to show the fed that they are restructuring to become more profitable and viable or be forced into bankruptcy and reorganization under federal control.
Here is the story and video from YahooNews: http://news.yahoo.com/s/ap/20081219/ap_on_bi_ge/meltdown_autos
Jim DeSantis
______________________________________
Editor's Note: It took less than 40 minutes to submit this article to 104 Free Article Directories to generate free traffic to my blog!
Click here for information about the tool that I use!
For The Best Hosting Package...
Read More & Leave Comment>>>
In essence, automakers and the union have three months to get their act together. If they don't, the fed will force repayment of $17.4 billion in government loans and force the companies into Chapter 11 bankruptcy.
At an announcement this morning (Dec. 19, 2008) President Bush said: "The American people want the auto companies to succeed and so do I." He cited the failure of the Senate to pass a bill before going on recess as the reason for the administration stepping in to provide emergency money to Chrysler and GM that will tide them over for the next three months. Ford Motor has said they do not need financial help.
The move hands the crisis to incoming President Obama but gives auto companies and the union time to work out reforms that will save them from total collapse. However, in the recent past, the autoworkers union refused to offer wage and benefits concessions demanded by some members of congress in exchange for a loan package. It's unclear today what impact the president's demands will have on the union.
The bottom line is this: Chrysler, GM, and the union will have to show the fed that they are restructuring to become more profitable and viable or be forced into bankruptcy and reorganization under federal control.
Here is the story and video from YahooNews: http://news.yahoo.com/s/ap/20081219/ap_on_bi_ge/meltdown_autos
Jim DeSantis
______________________________________
Editor's Note: It took less than 40 minutes to submit this article to 104 Free Article Directories to generate free traffic to my blog!
For The Best Hosting Package...
Read More & Leave Comment>>>
Jim DeSantis at 11:21:00 AM
Current Articles |
Other Hot Topics |
Top
0 Comments:
Post a Comment
Home