It would really be surprising if this bailout does not place atop the list of all time poor public expenditure policies. There are just so many reasons the bail out of automakers should never have been allowed. At its most basic, it is outrageous to take money from taxes paid by those making $ 10/hour and give it to a company like GM.
The survival of GM from this point will do more harm to the economy, environment and social fabric of North America than any minor advantage for its survival.
To think more than half of all business taxes paid in Canada is on the bank accounts of two companies to help them survive and are competing against other companies trying to operate on the free market is totally absurd. It is the Lehman Brothers fear factor allowing this outrage to play fed by management cowardly coward.
GM, Chrysler agree to reconsider dealer closings
By STEPHEN MANNING and KEN THOMAS (AP) – 20 hours ago
WASHINGTON — General Motors Co. and Chrysler will reconsider decisions to close thousands of dealerships as part of a compromise meant to stave off federal legislation that would require them to keep the showrooms open.
The decision by the two automakers, announced Thursday, raises the prospect of new life for some of the more than 3,000 dealerships that were slated to close as part of the broad auto industry restructuring. Dealers have loudly protested the decisions, and some said Thursday that the policy is merely an attempt by the automakers to placate Congress.
Just how many dealers could potentially be allowed to stay open remains unclear. The companies did not provide any estimates. Dealers involved in talks this fall with the automakers said likely only a handful of lots targeted for closure would survive, despite the new policy.
The plans of GM, based in Detroit, and Chrysler Group LLC call for face-to-face reviews with dealerships and binding arbitration for those who challenge closure of their showrooms. Chrysler said its review process would start Thursday while GM said talks with dealers would begin in mid-January.
Chrysler, based in Auburn Hills, Mich., said dealers will be given a chance to open new showrooms if an arbitration panel rules in their favor.
Dealer groups and a key lawmaker questioned the automakers’ latest plans, however, opening the possibility of Congress considering the dealer legislation anyway. The National Automobile Dealers Association said the GM proposal was a “positive step” but did not create “a sufficiently meaningful process that provides for a reasonable opportunity for dealer reinstatement.”
You can read the full story at Associated Press