Snappy newsletters. Simple Facebook sharing. Spirited comments. Sweet features are waiting… GET THEM NOW!

White House May Divert TARP Funds to Automakers

The President may tap bailout funds once thought off-limits to Detroit

By Clay Dillow,  Newser Staff

Posted Dec 12, 2008 9:30 AM CST
Email

(Newser) – The Bush administration said today it will consider using funds from the $700 billion market-rescue plan to bail out GM and Chrysler, MarketWatch reports. The shift comes after the Senate failed to pass $14 billion in emergency loans last night. The plans aren't final, but the money could help one or both of the automakers avoid bankruptcy.

"A precipitous collapse of this industry would have a severe impact on our economy, and it would be irresponsible to further weaken and destabilize our economy at this time," said White House spokeswoman Dana Perino. She added that the auto companies, unions, and other stakeholders “must be prepared to make the meaningful concessions necessary to become viable.”

White House Press Secretary Dana Perino announced this morning that the White House would consider using TARP funds to rescue the ailing automotive industry after talks in Congress died last night.
White House Press Secretary Dana Perino announced this morning that the White House would consider using TARP funds to rescue the ailing automotive industry after talks in Congress died last night.   (AP Photo/Ron Edmonds)
The General Motors logo hangs over the tail of an unsold 2009 Impala at a Chevrolet dealership in the southeast Denver suburb of Lone Tree, Colo., Sunday, Dec. 7, 2008 as the industry awaits a rescue.
The General Motors logo hangs over the tail of an unsold 2009 Impala at a Chevrolet dealership in the southeast Denver suburb of Lone Tree, Colo., Sunday, Dec. 7, 2008 as the industry awaits a rescue.   (AP Photo/David Zalubowski)
« Prev« Prev | Next »Next » Slideshow

Under normal economic conditions we would prefer that markets determine the ultimate fate of private firms.
- Dana Perino, White House spokeswoman

« Prev« Prev | Next »Next » Slideshow
To report an error on this story, notify our editors.
A snapshot of the day's best news stories.
 
COMMENTS
Showing 2 of 2 comments
Guest
Dec 12, 2008 12:03 AM CST
I BELIEVE IF THE AUTO WORKER'S WOULD FREEZE THEIR PAY FOR 2 YR'S. THIS WOULD HELP THE COMPANY. AS FAR AS CONCESSION'S I HAVE TO SAY NO! THE AUTO COMPANY'S HAVE ALREADY TAKEN ALOT OF THE HEALTH CARE AWAY FROM THE RETIREE'S, HOW CAN THAT BE? LIVING ON A FIXED INCOME, WITH THE RISING COST'S ON FOOD, FUEL ETC... THE AUTO WORKER'S HAVE TO STAND UP FOR THR RETIREE'S AS THEY WILL BE ONE SOMEDAY! NO CONCESSION'S BUT A PAY FREEZE WILL HELP TREMDOUSLEY!
bacimom
Dec 11, 2008 9:46 PM CST
Their problems are not all self caused. Much of the current situation has been caused by Wall St, the credit crunch and the economy. I won't whitewash their self-induced problems, but fair is fair and the WS bailout money being used for Detroit's WS caused problems is not a stretch. That being said, the unions need to realise that a lower wage is better than no wage at all and no 2 year pay-out if the Big 3 fail. Yes, the rank and file line workiers shouldn't take the entire brunt of the cuts, but they should be willing to take immediate cuts short-term to be re-considered in 3-6 months time depending on the economy situation then. Let's all develop some common sense and pragmatism people. It wouldn't be just the auto industries that would fail. This would not just trickle down to other sectors but gullywash throughout suppliers, dealers, local small businesses and more housing losses. Keep in mind that some of the suppliers that may go belly up also supply other heavy equipment industries including, trucking, agriculture and military.

What's next for the auto industry?
ABC News

As bailout crashes, Bush takes the wheel in a dead spin
Time

 
Bush administration • Chrysler • General Motors • Ford • auto industry • bailout • financial crisis

More Newser Stories

Automakers Pushing 'Connected' Cars

Chrysler Roars to $225M Profit

GM Reclaims World's No.1 Spot

ECB Makes Massive $639B Loan to Banks

Saab Declares Bankruptcy
NEWS FROM OUR PARTNERS
Other Sites We Like:   24/7 Wall St.   |   Betty Confidential   |   BuzzFeed   |   Cracked   |   Fark   |   Timelines   |   The Frisky   |   Geek Sugar   |   NewsOne