Detroit Car Companies Get $25 Billion Bailout
Get on your feet! That’s the message the feds are sending troubled automakers authorizing a $25 billion dollar bailout. Suffering from a sales slump in lieu of the fuel prices and cash shortages for massive operational costs, the loan is intended to assist automakers with the move toward producing and manufacturing sustainable modern vehicles. The senate voted 78/12 in favor of the bailout at a rate of 5% — a considerable break from the usual 25%.
The loan is the largest federal government payout to an automaker to date. This is big, keep-your-fingers-crossed news for a struggling Detroit and surrounding Michigan suburbs. Detroit is currently the most impoverished major city in the country, stunted by all economic pitfalls of the current crises, and hopefully the loan puts a band aid on the wound that will help it heal before more infection strikes this ailing metropolis. Of course, GWB still has to sign off on this one, but he seems to be comfortable signing big checks for big corporations these days.
First up on the sustainable menu is the Chevy Volt, which GM is ambitiously trying to get to market by 2010. Check back later this week for GoTryke’s take on GM’s current consumer experiment the Chevy Equinox fueled by hydrogen fuel.