auto bailout negotiations fail in senate, page-114

Of course the US taxpayer should save the Detroit auto manufacturers - its problems stem from misguided US government policy on automotive fuel pricing.

US governments have consistently priced auto fuel without recognition of the external cost of motoring - such as pollution affecting health, climate, general wellbeing etc . The market has responded (with ruthless efficiency) to this cheap fuel policy with its demand for clunky, gas guzzling autos.

If cheap fuel generates demand for gas-guzzlers, it is the industry's role to provide.

Where Ford and GM operate in parts of the world (such as Europe) where fuel is more fully priced they produce excellent vehicles that are thoroughly competitive.

Doubtless they would do the same in the US in similar circumstances - problem solved.

They should be bailed out of their present predicament with government assistance recouped through a levy on auto fuel that morphs into a permanently higher excise once the bailout funds have been fully recouped.

And for the same reasons Ford and GM merit taxpayer assistance in Australia.