Big Three infusion
Federal loan could work wonders for troubled automakers
Date published: 10/9/2008
WHILE CONGRESS was con- structing a $700 billion Wall Street rescue plan, President George Bush signed a spending bill that included a separate bailout for one of America's most troubled industries: $25 billion in heavily subsidized loans for the Big Three domestic automakers. At least we can say the helping hand for Detroit could put some real steel in the garage.
The idea behind the risky loans is to help GM, Ford, and Chrysler develop gas-sipping four-cylinder engines that would work in tandem with rechargeable batteries in creating the next generation of hybrid vehicles.
Now comes the it's-about-time part: Where was this forward thinking 10 or 20 or 30 years ago? GM and other American carmakers have been dragged into the fuel-challenged age kicking and screaming, just as they were with every automotive advancement from seat belts to shrinking sheet metal. They had to see the Asian invasion coming as long as 40 years ago, but apparently failed to recognize it, and certainly failed to act.
Like the kid who had to be admonished about letting his studies slide, the longer Detroit waited to get into the habit of making attractive, fuel-efficient vehicles, the harder playing catch-up was going to be.
But let's be positive about this. The $25 billion, spent wisely, could go a long way toward putting Detroit back in the global automotive ballgame. The government views these loans as an investment and expects not only to get its money back, but to realize the fruits of new high-tech jobs and domestic vehicles of which both the Big Three and their customers can be proud.
GM plans to build a new plant in Flint, Mich., a community whose suffering has paralleled the hard times of the U.S. auto industry. If any town needs and deserves an economic shot in the arm, it's Flint. Of the utmost importance is that Detroit shed its tunnel-vision view that Americans still lust after oversized SUVs with gas-guzzling V-8s. There are many things after which Americans lust; thankfully, many of them choose the straight and narrow anyway. Especially after enduring the recent pain at the pump.
Date published: 10/9/2008
Most recent reader comments:
what?
(posted by
larryg
, Oct. 9, 2008 5:40 am)
Those guys won't change as long as they have a sugar
daddy... and it does not take a genius to see this.
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