Obama Administration Turns Down Auto Suppliers' Aid Request

[Purveyor]

Source: DOW JONES NEWSWIRES

By Josh Mitchell, Of DOW JONES NEWSWIRES

WASHINGTON -(Dow Jones)- The Obama administration has turned down a request by auto-parts suppliers for up to $10 billion in new aid, concluding that the government shouldn't further interfere in the industry's contraction.

In rejecting the request late last week, the Treasury Department appears to have drawn a line in how much taxpayer money it is willing to spend on saving the U.S. auto industry. The move also indicates that the administration is confident that its multibillion-dollar effort to save General Motors Corp. ( GMGMQ) and Chrysler LLC has stabilized the car industry.

Neil De Koker, president and chief executive of the Original Equipment Suppliers Association, said Obama adviser Ron Bloom turned down the suppliers' request in a meeting last week.

Bloom and several of his staffers told De Koker "that consolidation for the industry needs to take place."

"'We all recognize that and we don't think that having a general program of assistance to all suppliers would help that, nor is needed at this time'," De Koker, in an interview with Dow Jones Newswires, recalled them saying.

Read more: http://tinyurl.com/mywxrx

[liberal N proud]

1. Only BIG FUCKING banks get bailouts

[Kolesar]

8. No

BIG FUCKING AIRLINES get bailouts, too: $40 Billion, IIRC.

[ixion]

2. well, yeah... we need that money so we can bailout Wall St.

hypocrisy at it's finest.

[BobRossi]

3. Bailout for American workers?

Never happen. Not as long as Wallstreet bankers are forced to eat domestic caviar.

[MannyGoldstein]

4. They Should Call Themselves "Banks" [nt]

[Demeter]

5. This Decision Defeats All the Others and Wastes the Money

There are no real people in DC any more.

[Dover]

6. And there's the magic word....."CONSOLIDATION".

And perhaps what we'll see instead is the automakers buying up parts companies.
One stop shopping....just as the banks have done with insurance, etc.

And when will the antiTrust laws be enforced?

[Vidar]

7. Wouldn't want aid an industry that actually creates jobs.

[Deja Q]

10. Quite...

I still think there is a greater good in all this:

This is likely tied somehow into the 'clunkers for cash' program as that will get people to buy new, energy efficient, American cars, which in turn still means jobs...

Just a passing thought...

[Deja Q]

9. !

:wow:

Consolidation won't help the American economy, unless there are incentives for consumers... and companies... to replace their cars and parts. (hence the 'clunkers for cash' initiative?)