Bailout Watch 485: Ford Heading for $11 Billion Bailout
Ah, the good old days, back when the only automotive bailout on the table consisted of a paltry $25 billion federal loan program to retool old factories (a.k.a. Chrysler, Ford and GM plants) to build fuel efficient cars. At the end of last year, when the NSFW hit the fan, President Bush tried to divert those Department of Energy (DOE) funds to Chrysler and GM, as an end run around an recalcitrant Congress. The DOE said, hey, don’t rush me babe. In the end, Bush shoved aside Congressional and bureacratic dithering—I mean, due diligence, ignored the original intent of the Troubled Asset Relief Program, sent $17.4 billion worth of TARP booty to the two zombie automakers and pissed off to Texas. Since that fateful day, GM alone has blown through the 20 bil barrier. So, what of that $25 billion DOE fund? Well, Chrysler and GM can’t have it; they failed the loan requirement’s viability test. And how. Which leaves. . . Ford. The Detroit Free Press [almost] reports that The Blue Oval Boyz have applied for $11 billion from the federal fund. Will this Uncle Sam suckle punt Ford from the Motown moral high ground, and ding Dearborn’s dead cat bounce? Of course not! It’s a loan.