Not a word on who they’re planning to sell those cars to. And that in the end is all that counts, it’s what stands between Detroit and the Bulgaria model. There’s no way a country can forever subsidize an industry that bleeds dozens of billions of dollars every year, manufactures products that people don’t want to buy, and has no intelligent plans to turn this around, but instead relies on magical thinking.
The US automotive industry is capable of producing 17 million vehicles annually, while sales have dropped to an annual rate of only 10 million vehicles. They can magically hope that the holy spirit will descend from heaven to sell their cars for them, but the reality is that chances of that happening are somewhat slim, and certainly not robust enough to throw hundreds of billions of dollars into. Car sales won’t go up from the 10 million annual number we see today for a very long time, if ever; they will instead go down, and a lot too.
All potential bail-out money would be far better spent trying to help the soon to be unemployed. There will be millions of jobs lost in the US, no matter what anybody does. The unwinding of an extremely diseased debt and credit situation guarantees it. If Washington keep refusing to offer support for citizens, and instead hands what little they have left to corporate interests, the whole country risks falling apart to pieces. And sooner than you think
