10/29/08

Will Big Oil Bush Save Electric Car General Motors?


No, of course not.

A Monday Morning writer begs a question that's naive beyond any belief.

As if, the White House will do something to save GM? Not after it announced production of an electric car called the Volt scheduled for 2010.

GM can cancel the Volt and maybe get Bush backing. Otherwise - and mark these words - Bush will make sure GM goes bankrupt as his last act in office.
GM, Chrysler Merger Could Get Government Backing
By Jason Simpkins

The U.S. government is looking for ways to facilitate a merger between General Motors Corp. (GM) and Chrysler LLC, in the hopes of keeping the once vibrant industry afloat during a time of crisis. But Uncle Sam’s credit card is close to maxed out and a bailout for the auto industry could open the door for other troubled industries to come calling.

Detroit’s “Big Three” automakers – GM, Chrysler, and Ford Motor Co. (F) – are in need of government assistance after being pushed to the brink of bankruptcy by slumping sales and increased foreign competition.

GM has been in talks with Cerberus Capital Management LP about buying Chrysler since September. But GM’s inability to secure financing at a time when credit is hard to come by and auto sales are in decline has left GM with few options other than appealing to the government.

GM spokesman Greg Martin said Monday that the company has asked the U.S. Treasury to broaden recently passed legislation, intended to bolster banks and financial institutions, to include auto companies.

“We believe the federal government should consider using all the tools available to it, including some recently enacted, to support industries that are in distress and that are essential to the U.S. economy,” Martin told the New York Times....more

1 comment:

Anonymous said...

Funny, I was reading about the chronology of big oil companies trying to stop the development of EVs - and I was thinking the same thing - if GM is pushing the EV-agenda, the big oil companies WILL make sure that GM will go bankrupt.