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GM And Chrysler Handpick Auto Suppliers For Bailout

April 9, 2009 RSS Feed Print

We know that many small auto suppliers depend upon the Big 3 for business. Indeed, one of the main justifications for the Detroit bailout has been that we cannot allow these small(er) businesses to be run into the ground.

The Washington Post today has some details about how the federal government plans to help these businesses. It seems that the people who get to call the shots on which suppliers receive aid are the very companies whose mistakes have put the suppliers in jeopardy:

Treasury left it up to General Motors and Chrysler to decide which suppliers would be eligible for the aid. GM will initially get $2 billion in federal support, and Chrysler will receive $1.5 billion. Ford declined to participate, saying it had enough funds to support its supply base. In all, the government said it is prepared to set aside $5 billion to help finance the deals.

Tags:: small business

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what interest should a national government have in subsidizing an international corporation which has failed to successfully compete in our capitalist world? Someone needs to remind our government that it works for the people, not for the elite who are running the multinational corporations which have ruined countless lives and our environment... Honda, Subaru and Toyota all build plenty of cars here in the states, what about all the people working at suppliers for these factories?! Bailouts are a socialist-minded excuse to further line the pockets of our elite class, just like the World Bank and the IMF are fronts for disenfranchising the people they are sworn to protect. If you want the proof, read John Perkins' The Secret History of the American Empire.

gonzo013 of MT 12:52AM April 14, 2009

If these people in Washington ever took economics they would realize that bailing out a failing company simply is not the right thing to do. The economy works on supply and demand... Period! If GM goes bankrupt and there is still a demand for cars, then someone is going to step up and meet the demand. It's called capitialism, and it's a beautiful thing. It's the sole reason America has the strongest economy in the world.
On the event of GM going bankrupt, other car companies will either grow stronger, or new car companies with better ideas and less union contracts will spawn in it's place. We will see newer higher-tech cars faster if GM tanked. And people working for GM would be the first hired to these new companies because they have the experience. It's a win-win to let them go bankrupt. Dumping tax-dollars into a failing company is just plain stupid, all it is is a round-about way of giving welfare to the workers.

Scott of MA 10:20PM April 13, 2009

new 07 chevy trans mission went out and they want to rebuild it and not put a new one. i argued the fact but to no vail. after being a gm owner for over 30yrs. i will be trading in on a new toyota. oh and my company i worked for shut down our plant ALCOA ROCKDALE TEXAS hasnt recieved any bail out.

GENERAL MOTORS SUCKS of TX 2:04AM April 11, 2009

GM And Chrysler Handpick Auto Suppliers For Bailout

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