McCain: $25 Billion Should Be Enough to Revive Car Industry

McCain sees no reason to give more funds to carmakers

John McCain said in an interview on NBC that the first $25 billion allocated to the automotive industry should be enough to help the companies affected by the global economic crisis, so new funds wouldn't be recommended, Detroit News wrote today. In this context, an additional $15 billion loan may prove to be a waste of money because the government should “see how that works before we say we're going to give you some more."

Due to the global recession, most American auto manufacturers saw their sales going down, with more and more clients looking for more fuel-efficient cars, often designed by European companies. In fact, the government funds were especially meant to help the American carmakers design new vehicles providing lower fuel consumption than the actual models on the domestic market.

The North American car industry is one of the most affected sides of the market, with the majority of companies taking unprecedented measures to prevent financial loses or, at least, to minimize the effects of the economic crisis. If General Motors tried to partner with Chrysler, Japanese manufacturers such as Honda, Suzuki and Yamaha cmut jobs and lowered production as a result of reduced demand in the United States. Moreover, local carmakers are now aiming to design more hybrids and electric cars, often regarded as “cars of the future”.

"The auto industry clearly is extremely important to the economy and now has enormous difficulties. I think we do need to face those difficulties and see if there are ways that public policy can be helpful and make sense,” Robert Rubin, Obama adviser, commented on the possibilities to help the affected car manufacturers.