Mostly obscured in the news of the massive Wall Street bailout was a separate, $25 billion bailout(in the form of low-interest loans) to U.S. automakers. The Big 3 have been pushing hard for the cash, arguing that they need federal help to retool their plants so they can build electric and alternative-energy cars. In other words: they bet on the wrong technology for too long and need an upgrade. And Detroit wants the taxpayers to foot the bill — a $7.5 billion budget hit, according to the Congressional Budget Office's blog. (Yes, the CBO has a blog, if only in name.)
The fact that this technological revolution in cars snuck up on the U.S.'s auto industry is mind boggling. Perhaps had Detroit spent less time fighting the government on fuel efficiency rules and more time trying to compete by making cars that used less gas, they'd be much father along in modernize their plants. (By the way, I don't buy the argument that no one saw fuel prices heading this high; it pretty much should come with the job to predict and prepare for eventualities like this.) And had the government actually pushed tough regulations regarding fuel efficiency, it wouldn't be handing out bailout loans like this one.
So here's a competition for Epicenter readers. What other industry/company should be asking for a bailout because it bet on the wrong technology? Should Microsoft ask for a cheap loan to get back on its feet after Vista? Does Apple deserve a backdated check for the Newton? I'm using a Motorola Q9h; to stay competitive with other journalists, shouldn't the government loan me the money to buy a T-Mobile G1?
The comments are open. Winner gets a free subscription to the CBO blog.
Photo: *Flickr/akoaraisin
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