Bush Promises Help for Auto Industry

In a shift of sorts from his previous stance that the auto industry would not be granted access to the funds in the $700 Billion financial industry bailout, President Bush is now saying that all options are open to his administration as they try to find a solution to the auto industry meltdown. As concerns continue to mount that General Motors and Chrysler are going to be forced into bankruptcy as early as the end of this year, lawmakers have been unable to reach a compromise on just how to save the auto industry and its thousands of American jobs.

Analysts are pointing to the fact that the only real negotiations occurring at this point are internal on the side of the government and the administration. The auto industry needs the money, regardless of the terms under which the U.S. provides it. Whether the UAW or the companies themselves have problems with the terms, it simply doesn't matter. Either accept the terms and keep your jobs and companies, or go find new jobs and companies. So, it really will depend on how much control the government wants to have over the auto industry and its determination of the best course of action once a bailout package is provided.

President Bush pointed to the fact that the collapse of one or more of the Big Three Automakers would be a blow that the global economy doesn't need at this time. The jobs saved, at least in the short term, are also one of the primary concerns of the Bush administration. Administration officials are keeping President-elect Obama's transition team informed of all talks and will keep the new administration informed as details of the new bailout emerge.