According to California Attorney General Jerry Brown, the federal government may need to bail out U.S. automakers in order to keep them in business. The bail out could amount to several billion dollars.
“The American auto industry is in deep trouble and they may require subsidies,” said Brown, a three-time U.S. presidential candidate and former California governor. “They may have to be bailed out by the federal government that has just enabled their inefficiency and their gas guzzling.”
Brown feels that the automakers need help in order to protect jobs and our own domestic industry.
For years the U.S. automakers have seen their market share decline in the U.S. while Asian automakers have seen their sales and profits rise.
Attorney Brown stated that one of the main reasons that the U.S. automakers are in financial troubles is because of the poor fuel efficiency of their vehicles.
“The auto companies are in such a mess, because they persistently refuse to build fuel-efficient cars, that they might find it financially impossible to do the right thing,” he said. “If that proves to be the case, I think Congress has to look at ways of helping them.”
This past November U.S. automakers said that they did not want any government assistance. The last time an automaker received help from the government was in 1979-80 when the government bailed out Chrysler because of bankruptcy fears.
Do you think the U.S. government should help out the big three? Wouldn’t this go against the principles of a free market? If an automaker or company refuses to remain competitive shouldn’t they have to suffer the consequences on their own?
Full Story: Automotive News
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