DETROIT – Detroit’s automakers are sitting on pins and needles as they await word from the White House on getting a bridge loan. While the Bush Administration says help will be forthcoming, nothing has happened yet. Maybe manana. The delay indicates there’s some heavy-duty horse trading going on amongst all the parties involved. So look for a complete package of concessions on the part of creditors, dealers, shareholders and the UAW before they get any money.
Too bad the Big Three aren’t located in another country. They might be able to get some help more easily. The Chinese government will spend $2.2 billion to subsidize loans to its automotive industry. The Canadian government and the province of Ontario may offer as much as $2.8 billion U.S. dollars in aid. And French auto suppliers are pushing to delay paying their social security obligations for the next six months.
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