Posted by: rotenochsen | March 27, 2009

OBAMA APPEARS TO BE READY TO BAIL OUT THE BIG3 AND FOREIGN AUTO

 

Friday, March 27, 2009

 





One of the stories you will not read in the MSP or hear on the TV is the substance of the Video conference between German Chancellor Angela Merkel and President Obama this last Thursday.
Der Spiegel Internet has a report today of the subject of that conversation, and it will be a surprise to those who need to not believe that Obama is spending this Country into a bottomless pit.
If ever there was a doubt about Obama’s International, One World leanings this story should help allay any doubts.

“When Chancellor Merkel and President Obama spoke by video conference on Thursday there was plenty to talk about: NATO, the G-20 summit and the ongoing crisis at General Motors and Opel. The two leaders agreed to consult on how to rescue the US car maker and its German subsidiary.
The two also agreed to “close consultation” on the future of the embattled US automaker General Motors and its German subsidiary Opel, according to German government spokesman Ulrich Wilhelm”.

Obama’s auto task force has been working at solving the crisis at the “big three” car makers, GM, Ford and Chrysler. General Motors and Chrysler have received $17.4 billion (€12.9 billion) in federal loans since December and are seeking billions more to stay afloat.

“The German government is waiting to see what the outcome of the US auto bailout plan will be before making a decision on whether to support Opel. German Economics Minister Karl-Theodor zu Guttenberg was in the United States recently to sound out the White House and GM on how Opel could survive, possibly by cutting ties with its US parent company( as did Mercedes fom Chrysler). Opel, which has some 26,000 employees in Germany, is looking for some €3.3 billion ($4.2 billion) in loans or guarantees from the German government to stay in business. The company’s best chance for survival would be if an investor stepped in, but so far none seems to have come forward.

Further investigation into what is going on in Germany’s dilemma with the Auto industry, reveals that the German government has instituted a program called “scrapping bonus” for new automobile purchases by people who have cars over nine years old.
“Launched in January,this scheme has become the single most popular initiative taken by Chancellor Angela Merkel’s strange-bedfellows coalition of the conservative Christian Democrats (CDU) and the left-leaning Social Democrats (SPD). For weeks, the atmosphere at German car dealers has been like a county fair. This car bonanza was supposed to stop soon. The government had allotted €1.5 billion ($2.03 billion US) for the stimulus program — enough to provide €2,500 bonus payments for around 600,000 trade-ins. Hundreds of thousands have already applied and the funds were only expected to last several more weeks at best. On Wednesday, though, Merkel and her vice chancellor, Frank-Walter Steinmeier (SPD), agreed to extend the program with another billion euros, so that the boom can continue”.

The problem with all this Federal spending is that Germans are buying cars made in Asia more than German cars. Just as here in America the Germans prefer the fuel efficient cars that last longer over their own!

“Leading the pack is Daihatsu (where sales have increased by 230.5 percent), followed by Hyundai (an increase of 198.8 percent) and Lada (sales are up by 175.8 percent). The first German company to even appear on the list of top sellers is General Motors subsidiary Opel, which comes in at eighth place. It’s hardly surprising, then, that Daimler chief Dieter Zetsche is rejecting calls to extend the scrapping bonus. It’s difficult for him to look on as the German government provides what he describes as financial aid to his Asian competitors”.
Here at home, behind all the rhetoric and smoke screen, the only thing Obama wants to accomplish is to satisfy the Union demands. After all they provided 50 million dollars to his campaign!
It is time for all concerned Americans to shout loudly “We have had enough of your profligate spending to satisfy your voters. Now is the time to save America for all Americans!

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