According to CNN , the federal government announced a $13.4 billion bailout for automakers General Motors and Chrysler.
"Allowing the U.S. auto industry to collapse is not a responsible course of action," President Bush said. The automaker loans are designed to stabilize General Motors and Chrysler until March 2009.
"If the firms have not attained viability by March 31, 2009, the loan will be called and all funds returned to the Treasury," the statement says.
Is this realistically enough time for these automakers to stabilize their companies and avoid bankruptcy? Almost everyone agrees that the problems that the automakers are facing are systemic and not easily or quickly solved. What about Ford? Is that the one automaker that will be sacrificed to the bankruptcy Gods?
I've got a sneaky suspicion that this automaker bailout won't be enough to stop massive disruptions and potentially bankruptcy from affecting the auto industry.