Matthias Wissmann, current head of the Verband Deutscher Automobilhersteller
(VDA, or Association of the German Automotive Industry for us non-German speaking folks), is none too pleased
with the passing of a $25 billion financing package
for the Detroit automakers. Under the terms of the legislation, which has been approved by the House and is expected to pass through the Senate as well, the Detroit 3 will receive low-interest loans in order to finance the cost of bringing more fuel-efficient cars to America.
Of course, it's not entirely unexpected that Detroit's competitors aren't happy about the federal loans, but at least one piece of Wissmann's argument certainly makes a lot of sense. "If the U.S. car industry does not resolve its structural problems, then all the subsidies in the world won't help." Ain't that the truth. The hope, of course, is that this financial aid is just what the automakers need to fix said problems. Looks like we'll find out soon enough.
[Source: Automotive News
- sub. req'd]