Motortrend Blog: VW Wants a Share of U.S. Government Loans to Automakers

[GMusa]

http://wot.motortrend.com/6292051/in...-it/index.html

VW Wants a Share of U.S. Government Loans to Automakers, Should They Get It?

Concerned that the recently approved U.S. Government loans to domestic automakers could unfairly affect competition in the auto market, Volkswagen indicated today that they will seek a share of the $25 billion available.

Volkswagen CEO Martin Winterkorn told reporters in Paris that Volkswagen will seek access to the loans, saying, "We will raise our hand when the time comes." The bill, which President Bush signed into law yesterday, authorized funding of the low-interest loans and set aside $7.5 billion to get the program started. Domestic automakers have been pressing to fund the loans ever since the program was approved last December and, more recently, tried to get the size of the loans doubled to $50 billion. Domestic automakers say they need the loans to fund the retooling of plants to build smaller cars in order to meet the government's upcoming fuel economy mandates, and the loans have been made available for that express purpose. VW is planning on shifting production for the U.S. market to a new plant in Tennessee.

While the bill was designed to help domestic automakers, Winterkorn brings up a valid point. Government loans to businesses affect the market and could give domestic manufacturers an advantage over foreign competitors. Should the loans be made available to foreign automakers as well, or should they be reserved for domestic brands only? Share your thoughts in the comments below.

Source: Automotive News (Subscription Required)

[gerardo_zg]

Pathetic.

[GMusa]

Heck no they should NOT get it! They are not an AMERICAN company! And It shouldnt matter if they build a car or two here or not, same with other companies! Only AMERICAN companies should get money from the AMERICAN GOVERNMENT! Why should the AMERICAN GOVERNMENT give moeny to automakers from German or Japan etc.. If VW needs bail out money maybe they should ASK THEIR OWN GOVERNMENT for money!

[ChevroletRevived]

That would be truly ridiculous! Foreign automakers shouldn't ever be receiving money from the United States government.

[GMC-70]

Ok...now I have heard everything

[Phoenix]

U.S. government loans should be reserved for American auto makers, like Toyota Motor Company.

Toyota. Moving Forward.

[chaseabryant]

does that mean we should be talking to Japan about sponsoring some of the development costs for the US auto industry? How would Germany like to sponsor them as well?

What a joke.

-Chase

[SuperSS27]

Ridiculous....How does VW even begin to think that they deserve a low interest loan? They still owe us from WW1 or 2....lol

[HoosierRon]

Originally Posted by GMusa

Heck no they should NOT get it! They are not an AMERICAN company! And It shouldnt matter if they build a car or two here or not, same with other companies! Only AMERICAN companies should get money from the AMERICAN GOVERNMENT! Why should the AMERICAN GOVERNMENT give moeny to automakers from German or Japan etc.. If VW needs bail out money maybe they should ASK THEIR OWN GOVERNMENT for money!

Our leader went to Germany as a citizen of the world. We need to change this "only help America" attitude. If companies of the world need our help, then we should help them. Let us change these nationalistic bickerings. The workers of the world need to unite.

[GMfan1111]

how pathetic They shouldn't get the money at all because

A. they are a Foriegn company and not a domestic one

B. they already have a number of models equipped with diesel engines why not bring more here

c. they have their own problems to worry about lets not forget that Porsche is trying to raise their stake in VW and if successful will have significant say so in VW's projects

[Tstag]

VW will argue that they should get the loans and that if they don't it will be unfair to expect them to compete against the domestic competion as they don't benefit from low interest loans. They will also then no doubt threaten to set the EU trade people onto the US Government. If the US doesn't cave in then the EU (a larger economic block than the USA) could start to put import taxes on US products. Or worse they may even create a Ford/ GM/ Chrysler tax and put XX amount on the sticker price of every US branded car...

I said from day one that I expect the EU to get the boxing gloves out (like they did on steel) and it won't take much for this to happen. When it came to Steel the US basically caved in to EU free trade demands and EU steel companies were allowed to compete fairly. Frankly the EU is too big a market for the US to mess with and the US economy can not afford a trade war with the worlds LARGEST SINGLE MARKET.

[61BelAir]

not only no....but hell no! Ultimately they will probably get some assitance though.

[Ed Arcuri]

VW will be able to ask for these subsidized or guaranteed loan packages just as Opel or SAAB could make such a request in Europe.
Not to worry, though. I can introduce you to hundreds of government retirees whose pensions are being paid by the people who are working and paying taxes today, each of whom has chosen to buy Japanese or Koreans cars. Your tax dollars are already subsidizing foreign companies. We may compete in Europe, but the Asians have locked us out.
Not to worry, there soon won't be money enough for any of it. Herbert Hoover and Frankilin Roosevelt took what was certain to be a short term market correction and turned it into a depression. No, they turned it into a Great Depression. Wall Street made a mess of things in 1929, but it took the government to really make it "Great."
We are making the same mistakes today.
My usual optimism is crippled and limping along today. Harry Reid's Senate has just voted to subsidize the manufacture of wooden arrow shafts. I am not making this up. He did so with the active help and Yea votes of both major party Presidential candidates.
Yikes!
Cheers,
Ed Arcuri
"Those who do not learn from history are condemned to repeat it." George Santayana

[rozz]

Why? Are they hurting for cash or something? No way should we (our money) give them low interest loan...maybe a 30% interest loan.

[johnnyl321]

Originally Posted by HoosierRon

Our leader went to Germany as a citizen of the world. We need to change this "only help America" attitude. If companies of the world need our help, then we should help them. Let us change these nationalistic bickerings. The workers of the world need to unite.

didn't Karl Marx say that? "Workers of the world unite...the only thing you'll lose are your chains"