Argentina wants to use social security for finance of automobiles
Argentina is in the middle of it’s own auto crisis. So the government has come up with a solution. Leave it up to government to come up with this one:
Automakers in Argentina will sell basic models of their cars AT COST. Meanwhile, they will receive government subsidized loans in order to keep their companies afloat and keep people in their jobs. Each automaker is required to offer two of its most basic models for this plan. They can choose from one of three financing packages. These packages will be financed by the SOCIAL SECURITY SYSTEM.
The Argentinean Industry Secretary says, “We have agreed with the plants that these cars will be offered without a profit margin and the dealerships will also reduce their profit margin.”
What do you mean Mr. Secretary that “we have agreed”? Don’t you mean “We have instructed the automakers ….”
A little over a month ago, Argentina moved to seize private pension plans and blend them into their social security system. Now suddenly they’re talking about their social security system financing the automakers. Argentina is headed for a major catastrophe and hopefully we can learn a major lesson from them.
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Tags: argentina, Auto Industry, Social Security
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April 1st, 2009 at 11:24 am
I have read a few of your posts and they are all interesting and informative…keep up the good work.