More Bailouts, Protectionism or Both?
Nicolas Loris /
The government handed out billions of dollars in taxpayer money for General Motors and Chrysler to save jobs and become economically viable as fast as possible. No such luck with Chrysler. If returning to viability is the target, GM may have to turn to imports:
General Motors is engaged in negotiating a reorganization that could increase vehicle imports from its plants in Mexico and Asia while closing factories and cutting the work force in the United States.
That approach drew a sharp rebuke from the United Automobile Workers union on Friday. In a letter to each member of Congress, the U.A.W., which represents G.M. factory workers, argued that to qualify for more government assistance, the auto giant should be required “to maintain the maximum number of jobs in the United States.”
The administration, however, appears to accept the proposition that to return to profitability as quickly as possible, G.M. must import a significant percentage of cars from its plants in low-wage countries, like Mexico and China, or low-cost countries, like Japan.”