One Last Bush Bailout Before End: Chrysler Gets $1.5 Billion

Source: McClatchy Newspapers

WASHINGTON — In one final taxpayer bailout of industry before the Bush administration leaves office, the Treasury Department on Friday announced a $1.5 billion, five-year loan to a special company that Chrysler Financial is creating.

The struggling automaker will create a special entity that will receive the government money in several payments. It will use the money to purchase car loans made to consumers in a bid to spark more lending for car sales, a sector that's virtually gone dormant.

"We've Got $1.5 Billion to Finance Vehicles," a banner headline on Chrysler Financial's Web site said Friday afternoon. Chrysler officials said the company immediately would offer 0 percent financing on select 2008 and 2009 vehicles.

"We have customers who want to buy our vehicles, dealers who want to order vehicles and employees who want to build cars. Now with enhanced financing available in the system we can help our customers," Jim Press, the vice chairman of Chrysler LLC, said in a statement.

The latest bailout follows Treasury's pre-Christmas move to provide $4 billion to Chrysler in emergency funding to help stave off bankruptcy. It came less than 24 hours after Treasury officials announced in the wee hours $20 billion in additional Wall Street bailout money for Bank of America.

Read more: http://www.mcclatchydc.com/148/story/59912.html

I'm not saying I'm opposed, but how long will that last?


What we need to do is get the banks to start loaning to the Big 3 again, by legislation, if necessary.

with its new product line. The jury is still out on GM but after some major restructing and consolidation (maybe bankruptcy), there will probably still be a GM 4 years from now.

They started their restructuring program 2 and a half years ago when Mulally took the helm of the company. They are in pretty good shape right now, and own nearly 100% of their credit agency (unlike GM, which ahs been forced to reduce its stake to as little as 20% in its credit agency).

It is a loan.

...at $15,000 per car-loan.

In Bush's term, he has helped Ohio's steel industry and auto industry. We still hate him.