CNN: Auto bailout collapses in Senate
Deal to move forward on $14 billion stopgap measure falls short, possibly dooming GM and Chrysler to bankruptcy.
The future of the U.S. auto industry was in doubt Friday morning after a proposal for $14 billion in federal loans died in a late night Senate vote.
The Senate voted 52-35 to bring the measure for a vote -- short of the 60 votes needed to advance the legislation. The failure followed the collapse of negotiations between Senate Democrats and Republicans seeking a compromise that both parties, as well as the companies and the United Auto Workers union, could accept.
It's disappointing, but hardly surprising that so many people insist that a bailout of the Detroit Three is the key to saving their bacon.
Save them, so they can do what, exactly? So they can continue to piss away money and shareholder value?
Save them so they can keep making uncompetitive automobiles?
Honestly, restructuring under Chapter 11 is probably the best thing for the automakers in the long run.
Way back in in the depths of history, there was just as much doom, gloom, and boo-hooing about permitting airlines to go bankrupt.
Today, airlines seem to go in and out of court-ordered restructuring on a revolving schedule. Somehow, amazingly, air travel hasn't ground to a halt.
The fact is, the Detroit Three need to be destroyed in order to be saved.