December 12th, 2008
09:43 AM ET
9 years ago

White House says it may weigh other options to save auto industry

WASHINGTON (CNN) - The Bush administration will consider other options, if necessary, to prevent a collapse of troubled automakers Chrysler and General Motors, a White House spokeswoman said Friday, one day after the Senate failed to reach a compromise on a bailout plan.

"Under normal economic conditions we would prefer that markets determine the ultimate fate of private firms," Dana Perino said in a written statement.

"However, given the current weakened state of the U.S. economy, we will consider other options if necessary – including use of the TARP program (Troubled Asset Relief Program) - to prevent a collapse of troubled automakers.

"A precipitous collapse of this industry would have a severe impact on our economy, and it would be irresponsible to further weaken and destabilize our economy at this time."

"It is disappointing that while appropriate and effective legislation to assist and restructure troubled automakers received majority support in both houses, Congress nevertheless failed to pass final legislation.

"The approach in that legislation provided an opportunity to use funds already appropriated for automakers, and presented the best chance to avoid a disorderly bankruptcy while ensuring taxpayer funds go only to firms whose stakeholders were prepared to make the difficult decisions to become viable, competitive firms in the future.

"While the federal government may need to step in to prevent an immediate failure, the auto companies, their labor unions, and all other stakeholders must be prepared to make the meaningful concessions necessary to become viable," the statement said.

Filed under: Auto Bailout • White House
soundoff (130 Responses)
  1. Bleep

    on the contrary...

    There is never a "good time" to deal with the reality of a collapse,

    except right here and now.....(this common sense)

    instead of scrambling to throw billions at the inevitable

    why not spend the money preparing for the change, adapting through and helping the hardest hit until we work our way through it?.....

    Yes....lets CHOOSE the path of growth! instead of running from it!

    We are Americans....We are surviviors....and We CAN handle change

    Sure some will whine, cry and be outrage.....but most of us kow what the score is....we know what needs to be done....we are made of generations of those who know sacrafice.....dont think we arent prepared to do the same .......

    We are Americans, We are surviviors, We are builders, thinkers, creators AND we have a sense of humor in the face of monsterous challenges ........that reduce them to furry lapdogs over time, we are ready as we will ever goes on and ....All will be well

    Pull the plug and let it that we can all take part in building a better future on stronger foundation.

    December 12, 2008 01:53 pm at 1:53 pm |
  2. earle,florida

    The King has slain all his faithful Generals for self preservation, only to fall on his own Sword. The throngs of hypocracy have destroyed destinies dynasty! You go George'y Boy,...

    December 12, 2008 01:58 pm at 1:58 pm |
  3. WAW

    The Dixie-publicans are working for the foreign car makers who located their plants in southern non-union states. All in Dixie and all Republican. Strom Thurman all over again.

    December 12, 2008 02:09 pm at 2:09 pm |
  4. cobra

    This bail out is a rip off of the working tax payer. The knuckle dragging Gettelfinger and the union have cause a big part of the failure of the big there. Hope Bush comes to his senses and does not stop the car companies from going into chapter 11, we the people will be much better off.

    December 12, 2008 02:45 pm at 2:45 pm |
  5. LYNN

    This can wait ! the cars will not sell. The American family are suffering to hold on to their Homes. You can not sleep, prepare meal or LIVE IN A CAR. If you take the middle out , the top will FALL and it will continue weakness. First thing first SAVE FAMILY HOMES. THE REST WILL STRENGTH !

    December 12, 2008 03:06 pm at 3:06 pm |
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