President Barack Obama defended his bailout of General Motors Co. and Chrysler Group LLC, citing their speedy exit from bankruptcy and saying the consequences of doing nothing would have been catastrophic.
“I agreed that they should be held accountable. But I also recognized the historic significance and economic prominence of these companies in communities all across Michigan and all across the country.”
This is going to go one way or another, but I am tending to be optimistic. Obama’s bailout will either be a total success or a complete failure — I don’t see it being anything in-between. But, if early indicators can be trusted, it looks like a smart move. Both GM and Chrysler could rebound faster then people envisioned, now that they are no longer encumbered by too many dealerships and an overhead that was crushing both companies. If they can adapt during these leaner and meaner times, they will flourish and Obama will be the man who saved two members of the Big Three.
“I thought about the hundreds of thousands of Americans whose livelihoods are still connected to the American auto industry, and the impact on an already struggling economy — especially right here in Michigan,” the President said. “So, I said that if Chrysler and GM were willing to fundamentally restructure their businesses, and make the hard choices necessary to become competitive now and in the future, it was a process worth supporting.”