I think we can all predict how this will go, can\’t we?
President George W. Bush agreed to hand over the funds to the two companies after months of fraught negotiations over the future of the two companies and a week after politicians in the US Congress rejected a $14bn bail-out package.
The news will safeguard an estimated 3m jobs reliant on the car industry in the US, as well as 5,500 staff at General Motors\’ Vauxhall factories in Ellesmere Port and Luton.
GM and Chrysler, both based in the once-booming city of Detroit, Michiagn, had warned they would have run out of cash by the end of the year without assistance, putting hundreds of thousands of jobs directly at risk, and risking 3m job losses in the wider economy.
Now they\’re on the public teat they\’ll not come off it. And now that there\’s public money in the companies no one is going to push them into the necessary Chapter 11 bankruptcy.
This is going to be a very long and very expensive saga.