Obama to Funnel More Money to Auto Industry: Bonus, Obama to Increase MPG Requirements

Well they are to big to fail. Of course this will end badly but pumping money into any problem is Obama's policy. We know it won't work, but who cares, its just 16 billion for GM and 5 billion for Chrysler! The takeover continues and the payoff to the UAW will never end until it all goes under. And lets make the cars more expensive, why not we can just funnel more money in!

DETROIT — The Obama administration will probably extend more short-term aid to General Motors and Chrysler on Monday, but will impose a strict deadline for bondholders and union workers to make concessions that would help the ailing automakers become viable businesses and avert bankruptcy.President Obama’s auto task force is expected to say that despite its recommendation of more federal assistance for G.M. and Chrysler, bankruptcy could still be a possibility for either company, according to people close to the discussions.

The task force was in its final stages Friday of determining how to keep the two Detroit companies afloat. Meanwhile, the automakers were negotiating retiree health care costs with the United Automobile Workers union, and their debt burden with bondholders and lenders.But both immediate and longer-term help will be tied to completing the restructurings that G.M. and Chrysler began after receiving $17.4 billion in federal loans.

This ends with the companies going under and the choice will be bankruptcy of Nationalization.

Update, Just in Time We are also going to make cars more expensive to make!

NEW YORK (CNNMoney.com) -- The Department of Transportation announced the first increase in 25 years of the nation's fuel economy standards Friday.

Under the new rules, 2011 model year, cars will be required to get, on average, 30.2 miles per gallon and light trucks, such as pick-ups, SUVs and vans, will have to average 24.1 mpg.

The combined fleetwide goal for cars and trucks will be 27.3 mpg, a 2 mpg increase over the current standard of 25.3 mpg.