Backseat Driver: All eyes are now on Bush for auto bailout
9:56 AM Fri, Dec 12, 2008 | Permalink
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Well, the so-called auto bailout bill has failed and now all eyes are on President George W. Bush who apparently is concerned about leaving office as the second Herbert Hoover. As I noted last week, the auto companies' annus horribilis was made complete when they ran into two of the most powerful Republican senators who happen to represent states with foreign auto company vehicle assembly plants. Minority leader Mitch McConnell represents Kentucky where Toyota has a big assembly plant and Richard Shelby, the senior Republican on the Senate Banking Committee, represents Alabama which has three assembly plants - Honda, Hyundai and Mercedes-Benz - and a Toyota engine plant. Not surprisingly, the two senators, joined by Bob Corker of Tennessee, which has a Nissan plant and General Motors (former Saturn) plant, lead the fight against the bailout. To be sure, the United Auto Workers served as the scapegoat by not agreeing to immediate wage cuts. But it's hard to say at this point whether that was just the excuse the Republicans wanted to justify voting against the bill. Now the issue goes up to the White House which could well grant the auto companies some Christmas relief in the form of enough money - $15 billion - to tide them over until the Obama administration takes office on Jan. 20. Certainly there is the risk of a total market meltdown if General Motors and Chrysler are forced to declare Chapter 11 bankruptcy and it doubtful that Bush wants that as his final legacy to the nation. - Peter C.T. Elsworth 
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