Ford to close Aussie operations in 2016

[Merv and Sharon]

Originally Posted by sambo

Labor government, blue collar jobs, translates into... votes!

It seems that nation the size of Australia should be able to make something, rather than just dig it up and sell it off. Governments have pumped money and favours into the local car industry - Howard did so big time - as all governments do. Just look at the US bailout of GM. SAAB gone, Volvo on the way, the world market in cars in all about the multi-national big companies, cheap labour and government sweeteners unfortunately.

[Rebel1]

Originally Posted by Merv and Sharon

Just look at the US bailout of GM.

Merv, what the US feds did was not subsidize GM but bought a large holding of GM shares. That's a whole lot different than just handingover a fist full of money.

The US feds, bought the shares, then assisted in re-organizing GM which also included putting a cap on GM executive salaries.

Now, GM are on the come back and the US Feds are selling out their stake in the company. See here:
Government sells big hunk of GM stock

Whether the US Feds get all the money back is speculation but at the very least they will get a large part of it back and will not suffer the consequences of a full loss as will the Oz. Government with Ford.

Also note that other the other GM shareholders whose holdings were worth nothing at the time of GM claiming a the Chapter 11 have now not lost their total investment.

And this is the procedure I subscribe. Certainly assist the Industry, but do so by protecting the interests of the taxpayer as much as possible.