Despite the backbiting and overextension engendered by round one of the Department of Energy’s retooling loans, another $25 billion could be headed down the pipe. Automotive News [sub] reports that a second dose of retooling loans (the first having launched our Bailout Watch series) is headed towards a vote this weekend. The DOE’s loan budget would be doubled under the current climate change bill sponsored by Reps Henry Waxman (D-CA) and Ed Markey (D-MA). But before Ford starts counting its (non-bailout) chickens, remember this: “no comparable bill has been introduced in the Senate, and similar legislation was shot down in the Senate last year.” And with luxury firms (Tesla), foreign transplants (Nissan) and the proudly bailout-free (Ford) topping the list of tranche un, don’t expect a groundswell of support for tranche deux.
2 Comments on “Bailout Watch 565: House Moving Towards Retooling Loan Double-Down...”
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1949 Cadillac engines being assembled. Good choice of pictures, since that engine was the first post-war modern OHV V8. And guess who paid for the tooling? Uncle Sam, thanks to huge WWII contracts with outsized profits.
Before they are done this is going to make British Leyland look like a government success story.
Gotta end up costing hundreds of billions. This $75 billion is just a start.