Still on the hill, the three auto companies are begging for help.
Sales are drastically down. Their profitability has been low because of labor. Their quality has gone up and on average is equivalent to foreign makes. Their plants have beengetting more efficient on average. Their management has been sluggish to adapt to a rapidly changing market. The gasoline cost escalation caught them pretty badly. Public perception of their economy needs has apparently hit the hysteresis point and is not returning now that gasoline prices have fallen greatly. The availability of loans has caught them badly as well. They are a major factor in the country's economy, lots of spin-off industries. They make a strategic contribution to the armed forces. If all three go under, the stock market will greatly suffer, along with many people's retirement plans. Congress will look 'responsible' if they reject the requests that may not be paid back. Congress will look 'irresponsible' if their rejection takes our shabby economy even further into a lengthy recession.
Lots of issues involved. And it's a big Republican business. Ripe for discussion here.





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