General Motors keep on sinking
Chances for a bail out for the embattled General Motors are fading, according to the New York Times. It seems the bail bill faces ‘unsurmountable’ opposition on the Hill. The White House is also opposed to the bill – warning against throwing taxpayer money at companies that may not be salvageable (for one George Bush might actually make sense).
The paper quotes Republican Senator Richard C. Shelby of Alabama as saying that “The financial straits that the Big Three find themselves in is not the product of our current economic downturn, but instead is the legacy of the uncompetitive structure of its manufacturing and labor force. The financial situation facing the Big Three is not a national problem but their problem.”
Some sources suggest that that GM might need up to $30 billion in aid to turn itself around. General Motors has ignored people’s need for smaller cars, instead sticking to its established, gas-guzzling brands.