The amount of money that Americans have seen government loan the auto industries is the largest amount ever. Where is this money coming from? With this countries finances as bad as they are and job lose as high as it is people are not going to be able to afford higher taxes to pay off the loans if the auto makers are not able to. The question you might ask yourself is where are the auto makers going to get the money to pay the loans back? They have said they will be doing total shut down to help cut costs, and employee pay cuts up to 30%. With the economy the way it has been and banks tightening up on loans the auto makers sales numbers shouldn’t be that high. So what are some other ways they might be cutting costs that they aren’t telling. We can only speculate, like cutting cost on material, for example bolt rating and quality of electronic equipment. If these types of cuts are made I bet you will not see it lower the price of the vehicle. Car buyer’s probly wouldn’t see the effects of it right away but over time with amount of repair they may face because of these types of cuts. So if you are in search of a new car right now these things might cross your mind when you do go looking. The auto makers with the most problems or costs that they need to cut would be the ones to look out for. Only time will tell what will happen to the auto makers and the money that the government is giving them to keep from bankruptcy.
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