$25 billion for U.S. auto makers was a loan to help pay for emissions retooling

Government loans awarded to three major US automakers are justified as they need them to meet new environmental regulations, Ford chief executive Alan Mulally said Thursday

“This is not about a bailout,” the Ford chief executive told AFP in an interview at the Paris auto show.

“It was very insightful what they did with the recent credit tightening, otherwise it would have really slowed down all efforts to being new technology into fuel-efficient vehicles.”

Like I’ve been saying all along, global warming is a scam so government can tax us on carbon emissions. This $25 billion dollars that they “loaned” to the car makers will never make it back to our wallets, just like the TRILLION dollars that was spent this year alone on all the bailouts. The taxpayers will never see a dime of that back. People, you gotta love your government. Not only did they “loan” $25 billion but Mulally said the cost of meeting new regulations could be as much as 110 billion dollars! Of course, we will probably be paying for that too!

Read the full story.

By the way, here is a good article from Clark Howard’s website:

Drop in car sales affecting Japanese automakers

Car sales are at their worst level since 1993, with sales down 27% in the month of September. We’ve known for awhile that American automakers have been hurting, but the latest figures show that even Japanese automakers are ailing. Toyota’s sales are down 32%; Honda is down 34%; and Nissan is down 37%

There are 2 main reasons behind the death spiral in the auto business. First, we’ve lost confidence in the economy and are afraid to spend money on big purchases. Second, even if you wanted to buy a car right now, many banks won’t write loans because of the tightening of credit markets. That should work itself out as the behind-the-scenes credit markets thaw out and more money starts flowing again.

One tip — try your local credit union if you are looking for an auto loan.

Suffering sales means that this is a great time to buy if you’re able. The news about the slowdown hitting Japanese automakers means that you may be able to steal a deal on some coveted foreign nameplates. Of course, the best opportunity is always to buy used, especially if you’re looking for a luxury model.

In related news, Clark reveals that he’s sold his natural gas car, the Honda Civic GX. He credits T. Boone Pickens with raising awareness about natural gas vehicles, allowing him to capitalize on the market scarcity by putting his up for auction online. Clark sold it on eBay for far more than he paid for it a year ago. Now he drives his old standby Scion XB!