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Gold9472
01-26-2006, 11:06 PM
Bush not keen to bail out US carmakers

http://www.theage.com.au/news/Business/Bush-not-keen-to-bail-out-US-carmakers/2006/01/26/1138066915187.html

(Gold9472: I bet if the oil companies were in trouble, he'd help them out. Oh wait, he already did. The Iraq War, and the Afghanistan War.)

January 26, 2006 - 7:05PM

US President George W Bush thinks hard pressed American auto giants, General Motors Corp and Ford Motor Co, should develop better cars instead of looking to Washington for help.

In an interview with the Wall Street Journal, Bush said he had not talked to the struggling companies about their finances.

But he hinted that he would take a dim view of a government bailout of the top two US carmakers, the newspaper reported.

"I have been very reluctant - I'm mindful of the past where at one point in time, a predecessor of mine was faced with that same dilemma," Bush was quoted as saying.

"I would hope I wouldn't be asked to make that decision."

Asked if he had spoken to GM Chief Executive Rick Wagoner or Ford Chief Executive Bill Ford Jr, Bush told the newspaper, "Not about their balance sheets."

"And I haven't been asked by any automobile manufacturer about a bailout," he said.

Asked if the government should take any pre-emptive action, Bush was quoted as saying, "I think it's very important for the market to function."

Bush suggested he felt optimistic about the companies' prospects, according to the newspaper.

Ford and GM have said they would close plants and cut tens of thousands of jobs.

Competition, particularly from companies based in Asia, soaring health care and pension expenses and production costs have increased financial pressures on the unionised companies.

The newspaper said while neither GM nor Ford has sought a bailout, they have dropped hints they would welcome government help in areas such as coping with rising health care and pension burdens for their workers as well as the high costs of developing fuel-efficient vehicles.

Bush suggested that one way automakers could make more appealing products was to promote cars using alternative fuels, a topic he plans to mention in his state of the union address next week.

Bush said in the interview that US automakers could find new market share in the competition to sell vehicles that run on alternative fuels.

"As these automobile manufacturers compete for market share and use technology to try to get consumers to buy their product, they also will be helping America become less dependent on foreign sources of oil," Bush told the newspaper.