$20 Billion Bailout For Detroit Due In Congress Next Week - Reuters

[hatrack]

WASHINGTON - A proposal to offer up to US$20 billion in US loan guarantees to automakers to develop alternative fuels, hybrids and other energy saving technologies is expected to be introduced in Congress next week.

The plan by Rep. Mike Rogers, a Michigan Republican, is specifically aimed at struggling Big Three domestic vehicle manufacturers - General Motors Corp., Ford Motor Co. and DaimlerChrysler's US unit, Chrysler Group. It is the first large-scale government proposal designed to help Detroit's auto sector since its financial troubles became more acute this year.

The auto giants are wrestling with declining market share and crippling health care and pension costs. GM and Ford are closing plants and eliminating tens of thousands of jobs. Chrysler Group said this week it would slash production due to a glut of unsold vehicles.

Rogers hopes his US$20 billion initiative can speed research and development of gasoline-electric hybrid technology, clean diesel, hydrogen, and flexible fuel alternatives.

EDIT

http://www.planetark.com/dailynewsstory.cfm/newsid/38198/story.htm

[phantom power]

1. Ooooo, those mofos are at it again.

Those mighty captains of industry, the capitalist fucking heros who spend their days bad-mouthing "corporate welfare" for alternative energy, or CAFE, or any other government initiative that even peripherally steps on the toes of the Detroit Dinosaurs.

[phantom power]

2. Oh please, please give us a gigantic taxpayer-funded bailout...

to save us from our unspeakably stupid "leadership." Oh God, how I hope this bill gets voted down.

[maxsolomon]

3. 30 years late

tied into this hsould be:

stop making hummers, excursions, tahoes, suburbans, canyoneros, etc., or no $.

[teryang]

4. Hey! What's wrong with the free market?

Socialism for the rich, free market for the poor.

[YankeyMCC]

6. Took the words out of my mouth

Why does it seem to me it's a bad idea to give tax payer money to people who haven't shown inovation in 50 or 100 years?
:crazy:

[orwell]

5. Free market follies...

...too big to fail, another one of the mighty pillars of the great American crony capitalist system.

Monopoly state capitalism at its finest...

[Dover]

7. Yes, let's reward the lack of innovation and leadership once again.

From a strictly business perspective, would you pay a company to continue making a bad product; one who has not learned its lessons or shown any form of leadership or risk-taking, and who lacks any vision? They've HAD the technology to advance transportation for some time and haven't used it.
AND they announced that fuel cell cars would be available by 2010. So what's this 'research' money REALLY going to be used for?

[Nihil]

8. Brazen bastards!

Let's see, they have
- failed to innovate and keep up with the competition
- handed out huge salaries & bonuses to their execs
- consistently lied about the damage vehicles cause to the environment
- bought out Washington from its elected job of representing the people
- created trade barriers to impede the flow of superior foreign products

... and after all that, they want an additional $20B as a reward for
doing the job that they were supposed to be doing 20+ years ago.

The real indictment of American politics is that so many people will
support the proposal.