The Obama Administration has decided to play hardball with the auto industry. In a White House speech just a short time ago, President Obama unveiled a new plan to help the auto industry, and he said that the auto industry failure “is not the fault of its workers but a “failure of leadership” in Washington and Detroit.”
Obama rejected “requests for almost $22 billion in new taxpayer bailout money for General Motors Corp. and Chrysler, saying the car makers have failed to take steps to ensure their viability.”
The rejection of bailout funds came in the wake of the Obama Administration forcing out the longtime head of GM, and some are already questioning why Wall Street has not gotten the same treatment.
And speaking of Wall Street, they didn’t handle the news well at all.
On the flip side of this latest from the Obama Administration, Obama said today that “the federal government would immediately begin backing the warrantees that new car buyers receive — a step designed to signal that it is safe to purchase U.S.-made autos and trucks despite the distress of the industry.”
In other words… The auto industry seriously needs to get their act together. They’ve shown they still don’t get. The Obama Administration doesn’t want to see them fail — so it’s tough love time for the industry.
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