Three of our nations biggest automobile manufacturers, General Motors, Ford, and Chrysler, are finding themselves in a deep crisis. Collectively the three have fallen on bad times. Auto sales are sinking severely over the past few years and as sales decline, so does company profit. Its gotten to the point where America’s largest automaker, General Motors, are saying that they could run out of cash before the end of the year.
So now we have congressional democrats actively seeking support for legislation that would get $25 billion in loans immediately to automakers to help save their business, in exchange for a government ownership state in Detroit’s car companies. The big three automakers have been lobbying to try and get that $25 billion for the immediate emergency help and another $25 billion for future health care obligations for retirees and dependents. This would be in addition to the $25 billion that automakers were already promised back in September, but they will not be able to get a hold of it until sometime in 2009. But it’s becoming obvious as the companies began to look at their quarterly profits and are fearful of what could happen without immediate government help. And that help would be in the form of part of the $700 billion bailout package passed last month.
Executives from the big three automakers and the president of the United Auto Workers have already met with House Speaker Nancy Pelosi and they also begun to reach out to President-elect Barack Obama, hoping he’ll help. Obama, who has already said he’d want to create a “car czar” to lead government efforts in the auto industry, is deferring to the current president. Bush said he’s open to help out, but the administration is hesitant on using the funds from the $700 billion bailout.
Not for nothin’, but how much longer will this go on? What other industry’s are going to be needing of a bailout? What if we stop watching movies, should Paramount and Universal ask for a piece of the $700 billion too? There’s a valid arguement on giving the automakers what they need to survive, but it could get to the point where anyone could make a valid argument to get a piece of the action.