Bob Nardelli, Chairman and CEO of Chrysler, announced today the formation of a strategic global alliance with the Fiat Group. Unfortunately, Chrysler couldn't come to agreements with its creditors and under the direction of the U.S. Treasury, Chrysler LLC and 24 of its wholly owned U.S. subsidiaries today filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code in U.S. Bankruptcy Court for the Southern District of New York.

 

President Bush, set aside the proper role of government and handed the Big Three a $17.4 bailout. He said, "Under ordinary economic circumstances, I would say this is the price that failed companies must pay -- I would not favor intervening to prevent the automakers from going out of business. But these are not ordinary circumstances." So, where's the help for Mansfield Motorsports Park that had to shut it's doors "due to the economic times?"

 

Automotive News:
BAILOUT REPORT UPDATE:
Bush Bails Out Big Three to Save Legacy

President Bush, fearing that economists such as Moody's Economy.com's Chief Economist, Mark Zandi, is right that possibly 2.5 million American jobs would be lost if the Big Three filed for bankruptcy, pulled a 2 outs in the bottom of the ninth move as with just one month left in his presidency. He approved spending $17.4 of American taxpayers money to save his own legacy from being documented as the presidency that killed the U.S. auto industry.

 

Automotive News:
BAILOUT REPORT UPDATE:
December Auto Company Bailout Update

I've read opinions from both sides of the debate and there is one distinct difference in the two sides. Those supporting a bailout of some kind are saying, "The federal government should provide financial help...". Those skeptical any help will help or will help with the current proposed plans are saying, "...and we would not be serving the American taxpayer well if we spent their hard-earned money...". Note that supporters say the federal government should help and those skeptical say it would be the American taxpayer doing the helping. I ask you, who is trying to protect the interests of the American people as a whole and who is missing one of the key components of the financial impact of the bailout?

 

Auto Racing News:
What Does the Possible Auto Bailout Mean for NASCAR?

Well, no matter on what the final version of the bill goes to President Bush now or President-Elect Obama in the future to sign, there will be some changes for NASCAR to deal with in 2010 or maybe sooner. Current thoughts by economists and politicians are that $34 billion in American taxpayer support won't be enough to help the situation without significant cuts by Ford, GM and Chrysler in both personnel and other expenses. It also calls for the research and development portions of the companies to focus on more efficient products. Even with those cuts and refocusing or more direct focusing on more efficient vehicles will most likely cut support dollars for NASCAR related development.

 

Automotive News:
BAILOUT REPORT: Will the Government Attempt to Bail Out the Big 3?

There are conflicting ideas on what should be done as the big three U.S. automakers head toward financial ruin. There are also some key things to note in making the decision of what to do as well as the political factors that play into the decision and the timing of the decision.