Auto Industry Stimulus, By Way of Consumer Rebates

Please see this previous, closely related post (and comments) for some discussion about a similar proposal made by a commenting blogger.

The Wall Street Journal has a short opinion piece (takes a minute to read, at most) exploring the possibility of saving the automakers through a car buyer rebate project.

One key point it brings up that were not addressed the the previous post’s comments is the limitations (and consequences) of selective rebates that rewards American content.  Playing tit for tat in reply could lead many countries to close their borders to the already starting-to-fall American exports and lavishing upon their own industrial infirmities similarly protectionist measures.

The bigger issue I would have would be how this could influence the Detroit (formerly) Big Three to change their ways.  I am not sure how lawmakers would attach demands for automaker reform to a stimulus package that does not directly go to the automakers.

The most pressing issue for those closest to the brink (GM) might be how these theoretical automotive rebates might influence buyers to buy enough cars in a great enough volume to stave off bankruptcy.  Without billions of direct funding, GM may not make it through the year.  For car purchasers who would use the rebate at GM, the company may not still be around to sell them a car.

… and the cow goes moo