| Loans with a reduced interest rate aren't really protectionist. It's rather bad timing for the auto makers with lending tightening and major changes necessary. Assuming they don't go bankrupt, it doesn't cost the government anything. As long as it's really used to switch to efficient cars, it's probably worth doing. You're not gaining anything by letting them fall further behind the international competition.
That being said, there are some structural changes needed (especially with their unions) and a loan should probably be contingent on that happening. Otherwise they'll just bleed more money. | 