The Bush Administration has just announced that the White House has approved of loaning Ford, General Motors and Chrysler a share of the economic bailout. In a move that has stunned Republicans, the big three auto-makers were granted a total of $17B to keep their respective companies afloat.
$13.4B will be available this month and in January ’09, $9.41B goes to GM, and $4B to both Chrysler and Ford. But the Bush Administration has been quick to point out that this is only a short-term plan for the auto-makers. The incoming Obama Administration will be saddled with the final solution.
The ‘rescue bailout’ does not come without conditions, though.
1. The loan is to be repaid in three years.
2. If a plan isn’t formulated by GM, Ford and Chrysler to rescue themselves by March 31, 2009, then the loan becomes viable and monies repaid immediately.
3. There will be limits on executive compensation.
4. Ford, GM and Chrysler must meet fuel efficiency requirements.
President Bush said regarding the rescue bailout of America’s auto makers that “allowing the auto companies to collapse is not a responsible course of action” adding that bankruptcy would more than likely be “an unacceptably painful blow to hardworking Americans.”