Eric Hanneken's Library tagged "auto manufacturers" →  View Popular

“We cannot,” Obama said in March, “make the survival of our auto industry dependent on an unending flow of tax dollars. These companies—and this industry—must ultimately stand on their own, not as wards of the state.” Yet now that the state owns the auto industry, is guaranteeing its warranties, and is bailing out its parts suppliers, it will be easier than ever to use Detroit as a submissive vehicle for imposing costly new climate change rules. When those rules lead inevitably to reduced sales, pressure will intensify on Obama to fulfill his other promise from that same March speech: “We cannot, we must not, and we will not let our auto industry simply vanish.”

The president now has the power to prevent the Big Three automakers from vanishing. Whether he can force consumers to buy their products is another story.

If a new General Motors emerges from bankruptcy as planned, U.S. financial aid for the company will expand to nearly $50 billion, but neither the government nor the company is forecasting how much of the public money will be repaid.

It's sure to be a stretch. For the United States to fully recover its investment, the value of General Motors stock will have to reach levels it has never before attained.

It is my hope that the steps I am announcing today will go a long way towards answering many of the questions people may have about the future of GM and Chrysler. But just in case there are still nagging doubts, let me say it as plainly as I can -- if you buy a car from Chrysler or General Motors, you will be able to get your car serviced and repaired, just like always. Your warrantee will be safe.

In fact, it will be safer than it's ever been. Because starting today, the United States government will stand behind your warrantee.