Bush Administration Refuses Aid To Automakers For Merger

DealBook:

A deal to merge General Motors and Chrysler has hit an impasse after the Bush administration ruled out financing for it, Reuters reported, citing three people with direct knowledge of the talks.

This puts any merger of the struggling automakers on hold until after the U.S. presidential election, the sources told Reuters.

The development adds a new element of uncertainty for the embattled U.S. auto industry as Detroit's political allies warn the sector faces a deepening financial crisis that threatens tens of thousands of jobs.

Read the whole story: DealBook

Comments

[imusintheevening]

Wow, he must be pissed at John Snow.

[ferrarimanf355]

http://valleywag.com/5072392/tesla-ceo-admits-his-carmakers-running-out-of-cash

[blood1]

Different lines of thought:
1. I hate the thought of destroying the City of Detroit and all of its citizens.
2. I am convinced that BUSH is trying to do everything possible to put this economy as far in the ditch as possible before he leaves office...a­nd will say to the next president gleefully, revenge is sweet!
3. Automakers have dragged their feet for so long...whe­ther they caused it, or they were being pressured by the White House....t­hat SUV's will be back with low oil prices....­whatever the cause...I don't think that you really meant to fail, you just did not understand the rules of the game...obv­iously your lobbyists were not authorized to GIVE as much as Bush et al wanted...s­o you lose.
4. With all those unemployed automakers, Detroit could become the first city of Infrastructure rebuilding while figuring out how to manufacture something other than cars in those plants.
5. As unemployment grows, tell me how many of you would not be willing to re-locate to Detroit (and other carmaking plants around the country) to work...if only for a year or so...you could learn a new job, be productive and be a part of the new / better / smarter America.
6. If all everyone does is "whine and complain", we can just stop now....and watch the demise of the great America that was.

[Paul]

The city of Detroit would have been better off today if Henry Ford had been born in Kansas.

[PT6]

Let the Banks drop out so they can KEEP their $100 Million Christmas Bonuses!

But don't come crawling back after Christmas for Taxpayer Money!

That provides money to Convert the Auto Companies to "GREEN Power!"

That also provides more money to stop the real problem which is "Homeowner Walk-Aways" which are happening at a record rate!

If a Bank participates it needs to reduce Bonuses and other EXTRAS to ZERO as their contribution to saving the BANK!

[spitar1]

I actually agree with Bush on something. I don't think companies and banks should be bailed out for being crappy business people. The banks got their way. I don't like that. The US auto makers have been making poor quality, gas guzzling vehicles that are not selling. They had no fore sight for the future to make their companies grow. Too bad. Survival of the fittest. Maybe it's time they fail and let someone else come in and fill the void.

And before you lambast me for this, I know very well that will probably be foreign companies. That's what this country gets for it's greed and lack of vision. It's going to take a long time for our economy and our country to right itself. No one sends me stacks of cash when I'm short on my bills and I don't expect them to. Companies live or die by their business decisions. Time for some lessons to be learned so we don't make these mistakes in the future. Nobody ever said life was fair.

[darthdarcy]

This is just so stupid we need these companies to exist not only for the sake of jobs but our own national security..­!

The more we lose our manufacturing base the less and less of a great nation we become...

This isn't just about jobs it's about our very survival as a modern vibrant nation..!

The Japanese and Germans would never allow this to happen....­never..!

We have fools as leaders, fools, incompetent liars and swindlers are leading us to the abyss..!

[JoeBlough]

So vote them out this Tuesday.

[darthdarcy]

You don't understand the system is rigged incumbents are dug in, and for the most part when it comes to Democrats there are only even worse Republicans to choose from...!

[Paul]

GM and Chrysler are now in the same boat with the Evangelical Christians - gave the Republicans support, got lip service but nothing of substance on the issues that mattered most.

[TrooAmerican]

Yeah Auto Industry!!!! you sided with the Repubs before, you sided with them when you teamed up to destroy Emissions and CAFE standards legislation. You sided with them when you killed the Electric Cars for Oil profits... and now where are ya?
Whos on your side now?
Oil companies still backin ya up with that summer of $4.25/gal gas?
Repubs in the white house helpin ya out now?
Who's on your side now Mediocre 3?
Maybe you shoulda gone with the FarSighted Dems pushing better mileage and lower emissions vehicles. Maybe you shoulda pushed harder on Electric vehicles.

But nooooo, you all had to go with your big Corporate tax cut buddies for the short term INSTA-Profits instead of long term future company success.
nice.

[NeoStar9]

Well said.

[EinChicago]

Of course Bush opposes it. Middle class people actually work for GM and Chrysler, unlike Goldman Sachs and friends.

[KCFreedom]

What? Were they expecting a government/taxpayer handout for their merger?

Holy smokes. Sense of corporate entitlements is out of control.