Auto industry rescue

The World

President Bush said the car loans went against his free market principles but he had to act because too much of the economy was at risk. He said it could send our economy into a deeper and longer recession. What this amounts to is a short term lifeline for these two auto giants with a lot of strings attached. President Bush said this restructuring of the American auto industry will mean concessions from all sides. So how should foreign auto makers feel about what amounts to a $17 billion dollar government subsidy for their American competitors? This analyst says the global car business is so interconnected that a failure of one or more of the Detroit auto companies would be a shock felt by all. He says foreign companies have a lot to gain from downsizing and the other changes being forced on the American auto companies. This business professor says the American car market is likely to thrive in the future, it just won’t be American owned.

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