Auto Bailout Update

U.S. automakers did not get the result that they had hoped in Congress, so now have to wait for the White House to provide this lifeline bailout. These next few days are a nail biting time for the big three. General Motors Corp. and Chrysler LLC, as they all face imminent collapse; Ford Motor Company can go on for a bit longer.

The big three U.S. automakers had hoped for a $14-billion bailout, but the senate were not convinced, so they now hope to be able to tap into the $700 billion of the Wall Street bailout. The Bush administration is not in favor of using the Wall Street bailout for the U.S. automakers, but something has got to give soon.

As we mentioned above, it is General Motors and Chrysler who do not have that long before they have to close their doors, Ford has said that they do not need federal help now. Ford did say that if one of their domestic rivals fell, then they could face collateral damage.

Read full article