Auto Checks Start to Roll Out:
General Motors and Chrysler scheduled to receive bailout money from U.S. Treasury Department today

  • While there are no specific plans for further cash infusions, many economists think that this problem is far from over, and that the U.S. auto industry could need $100 billion or more before it recovers.

    The companies face a rough time ahead -- consumers are tightening their belts as the recession takes hold. Even those who want to buy cars sometimes aren’t able because credit is so tight and they can’t get the needed loan. On top of that, there are a lot of fixed costs, such as health and pension agreements with the United Auto Workers union.

    Extra requests for money would be tough for lawmakers to refuse, as the auto industry provides hundreds of thousands of U.S. jobs, directly or indirectly. But with so much money already doled out in the bailout saga, and the attention of the new administration likely to be on efforts such as its infrastructure-improvement plan, they may have to do some more persuasion to get money from President Obama and the new Congress.


Bull. It will be easier than ever. Once the government starts a program like this it is almost impossible to end it.

We'll end up nationalizing the auto industry at this rate.