After weeks of debate and terrible car puns, the government bailout of the auto industry has finally shifted into high gear, as soon-to-be-former president George W. Bush announced this morning that he's ready to pump Detroit with high-octane TARP fuel.
Auto manufacturers will be provided with $13.4 billion in short-term financing from the TARP, with an additional $4 billion available in February, contingent upon drawing down the second tranche of TARP funds.
The firms must use these funds to become financially viable. Taxpayers will not be asked to provide financing for firms that do not become viable. If the firms have not attained viability by March 31, 2009, the loan will be called and all funds returned to the Treasury.
Perfectly sensible. If the auto manufacturers use up all the bailout money by March and still aren't making any money, why, we'll just make them pay back the bailout money with- hm.
Maybe we could sell them for scrap?
Tags: Auto Industry, Detroit, George W. Bush, TARP