After failing to get the $10 billion in funding it asked for from the Treasury Department, GM has been forced to put its potential merger with Chrysler on hold until after the election, when both carmakers want to sit down with reps from the new administration. We’re sure the new president will put resolving the GM-Chrysler merger at the top of his agenda.
Reuters: A decision by the Bush administration to provide the government’s first funding for the auto sector since the $1.5 billion bailout of Chrysler in 1980 had been widely seen as the merger’s best chance for success.
Private investors consulted in the course of the talks have not expressed interest in providing funding for the controversial deal in the absence of government backing, people with knowledge of the talks have said.
So, who will Rick-the-CEO and Joe-the-auto-worker be voting for? Probably Obama, given both candidates’ position on this issue.
Democratic presidential candidate Barack Obama told NBC news in an interview he would meet with Detroit automakers and union representatives if elected.
“My hope is if I’m elected, that I’m immediately meeting with the heads of the Big Three automakers as well as with the United Auto Workers,” Obama told NBC. “And to sit down and craft a strategy that puts us on a path for an auto industry that can compete with anybody in the world.”
Republican John McCain’s campaign has said he favours moving to disburse the $25 billion in low-interest loans already approved for the industry as a first step.
That’s what George Bush decided to do, also
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