Detroit Gets Bailed Out
Lame duck president George W. Bush has approved today a $17.4 billion bailout for the Detroit automakers, proving once again that in this bizarro-Keynesian world, if you run your big business well, you get nothing, and if you don't, you get a reward.
"The government will have the option of becoming a stockholder in the companies, much as it has with major banks, in effect partially nationalizing the industry." Read on for more.First Half of $700 Billion Bailout Package Spent
Tapping the $17.4 billion for the auto industry basically exhausts the first half of the $700 billion total, so now Treasury Secretary Henry Paulson said that the second half should be released.
We'll have to wait and see if Detroit will really change as it says it will, or if they'll use this taxpayer pile of cash to stay the same and just delay their eventual demise in the marketplace. We sincerely hope that they'll grab this second chance and stage a green comeback. A good start would be bringing some of their European models to North-America (see for example the 63.6 MPG Ford Fiesta).
You can almost hear the sighs of relief coming from GM's headquarter.
Detroit's North-American International Auto Show
You just know that times are hard when you read something like this in the Detroit Free Press:
Joe Serra, cochair of the 2009 North American International Auto Show, drew applause Thursday simply by reassuring hundreds who attended a preview event that there will be an auto show. [...]
"To begin my discussion about the 2009 North American International Auto Show, let me start by saying, there will be one," Serra told an audience of about 450 at Cobo Center in Detroit, who had come to see the North American Car and Truck of the Year finalists revealed.
And a good thing too, because TreeHugger is already planning to be at the press preview event.
Via Yahoo News, Detroit Free Press
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