Bailout Watch 63: NADA Says Nada No Longer
We recently reported that the National Automobile Dealers Association (NADA) was sitting-out the bailout begathon in our nation’s capital. Their decision seemed sensible enough; NADA members include all American brands, even those who are doing just fine without a federal loan, thankyouverymuch. Well, we spoke too soon. Automotive News [sub] reports that NADA is back on board for the Potomac shuffle after “automakers had encouraged NADA to support the loans because they would provide broad economic benefits.” The news comes as industry lobbyists make the final push to appropriate funds for the $25b loan program by the end of the month. Meawhile, House Democratic leaders drafted a continuing resolution which commits Dems (in writing) to appropriate the cash by the October 1 deadline. In that missive, we also learn that the total cost of the bailout will be $7.51b, with $10m of that going towards the inevitable “administrative costs.” With NADA now on board, and the Dems making all the right noises, Detroit can nearly be assured of the bailout’s passage. Up next, surviving until the checks arrive, and gearing up for round two.
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Where's my cut? Isn't my family too important to fail?
Hmm...wonder if this wasn't an orchestrated, choreographed pas-de-deux, rather than a purposeful act of restraint from the NADA folks. In other words, the OEM's twirl, spin and curtsey as the chamber music plays, while the dealers (on cue)come in and join hands, forming a circle around their partners, and then they all rush in and smoosh together with an excited "whee!" as the music plays on. Can you hear the sweet refrain from the fluttering notes as the band plays on? (Oh, you thought I meant music notes? Naw, it's all about the Benjamins, silly!) Hard to envision the dealer body not salivating at the prospect of any kind of assistance that would enhance the value of their franchises. To be honest, I'm struggling to think of any reasonable rationale that would prompt them to oppose the measure in any way!
@speedlaw/mudhen You can start a dealership. Or buy some stock in GM, Ford or Cerberus.
JJ, if you are a Ford and/or GM stock holder then you fall into a class known as SOL. I would like to Bono to ask for debt forgiveness on my behalf. If he can work wonders for Ecuador, then I can only imagine what he can do for me and my student loans. OTOH, if my student loans go bad, will the government buy them, hold them, and then sell them at a later date?