Monday, March 30, 2009

ECONOMY - Auto Bailout, NO Free-Lunch This Time

"U.S. Lays Down Terms for Auto Bailout" by SHERYL GAY STOLBERG and BILL VLASIC, New York Times

Excerpt from 2-page article

The White House on Sunday pushed out the chairman of General Motors and instructed Chrysler to form a partnership with the Italian automaker Fiat within 30 days as conditions for receiving another much-needed round of government aid.

The decision to ask G.M.’s chairman and chief executive, Rick Wagoner, to resign caught Detroit and Washington by surprise, and it underscored the Obama administration’s determination to keep a tight rein on the companies it is bailing out — a level of government involvement in business perhaps not seen since the Great Depression.

President Obama is scheduled to announce details of the auto package at the White House on Monday, but two senior officials, offering a preview on condition of anonymity, made clear that some form of bankruptcy — a quick, court-supervised restructuring, as they described it — could still be an option for one or both companies.

About time we demanded responsibility before the taxpayer's money is spent.

1 comment:

Toronto realtor said...

Partnership with FIAT? It seems like two one-legged are trying to help each other to walk. Or is it just desperate move, only to present some action? Car makers should look in Asia how to run the industry...
Take care
Elli