A deal is in the works that could possibly put between $14 billion and $17 billion in loans into the hands of the nearly bankrupt automakers who have been petitioning the government for a bailout. The proposal would be funded by money from an existing loan program designed to help automakers build fuel-efficient vehicles. If this proposal is approved, a “car czar” would be appointed to oversee the nearly bankrupt automakers’ restructuring and repayment of the loans. The “car czar” would also write the guidelines that automakers would be required to adhere to and would be charged with determining if those guidelines are being followed properly. If all goes well, automakers facing bankruptcy could receive emergency loans as early as December 15, 2008. The automakers receiving the bailout will be required to repay the loans by February 2009.
If these automakers are given a bailout, there needs to be a major change in the leadership ranks of these companies. The executives who allowed these companies to come close to the brink of bankruptcy should not be allowed to keep their jobs and benefit from this bailout.