Bush gives automakers short-term assistance, while many foresee turning to the Obama Administration for long-term help.
Wired PR News.com – Bush recently announced that he would give troubled carmakers $17.4 billion in emergency loans topping the $14 billion assistance package bill killed in Congress days prior. As reported by the Associated Press (AP), the President stated it would provide the companies time to implement viable restructuring plans, and if necessary prepare for an “orderly bankruptcy.”
The majority of short-term loan assistance will be available December and January to General Motors Corporation and Chrysler LLC. Ford Motor Co. has expressed that they would be able to survive without immediate government assistance, as long as the other two were kept from going under.
The head of the United Auto Workers has expressed the intentions of the union to appeal to Obama, as well as Congress, for more long-term arrangement consideration. Obama had positive comments for Bush’s decision to provide aid to the industry, and suggested the car companies not “squander” the opportunity.
Bush was quoted in the AP report as stating “This restructuring will require meaningful concessions from all involved in the auto industry — management, labor unions, creditors, bondholders, dealers and suppliers…If a company fails to come up with a viable plan by March 31, it will be required to repay its federal loans. Taken together, these conditions send a clear message to everyone involved in American automakers: The time to make the hard decisions to become viable is now — or the only option will be bankruptcy.”