President Bush announces auto rescue package

Dec. 19, 2008 12:02 p.m.

President Bush has announced a 17.4 billion dollar auto rescue package that will provide three month bridge financing to GM and Chrysler in return for the companies undertaking restructuring and cost efficiencies to make the companies profitable in the near term.Ford will not ask for nor receive short term bridge finance as it has stated that it does not require it.
The companies have agreed to sell off or end the leases of their corporate jets and reduce executive bonuses as well as explore all necessary cost efficiencies. The Bush administration will draw upon Tarp funds to finance the loans. The new Obama administration will be tasked with assessing the automobile firm's performance   and either continuing longer term aid or forcing the companies into bankruptcy protection.

This is a good decision on the part of President Bush and a fitting act of responsible Presidential excercise of power in the closing days of his administration. Millions of North American workers will benefit from this decision in the months to come. Some members of congress may still oppose the decision but it is the right one to have made. Coupled with the Canadian aid to the auto companies this key North American industry now has an opportunity to begin the process of re-establishing its competitive position and improving its environmental footprint.