2008-09-30
Automaker Bailout Slid By Unheralded. Posted by Jesslyn Taylor, TaylorPaper.com, September 30, 2008. "Only in the shadow of a proposed $700 billion Wall Street intervention could a $25 billion bailout of the auto industry be considered a minor news event and excite little comment. The bailout of the automakers occurred last week. General Motors, Ford and Chrysler say they need help in transitioning from big cars and SUVs to fuel-efficient vehicles. The $25 billion is just half of what the Big Three were requesting. But it still dwarfs the $1.5 billion bailout of Chrysler in 1980. And there are far fewer strings attached than in 1980... There are striking similarities between the automaker bailout and the Wall Street measure; both are a response to bad business practices. In Detroit's case, the auto industry failed to react quickly to increased consumer demand for smaller, more fuel-efficient cars. Now they say they need help responding."
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