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Will an auto bailout save local dealerships?

10:47 PM CST on Friday, December 12, 2008

Wendell Edwards / 11 News

HOUSTON -- At River Oaks Chrysler Jeep, car dealers are enjoying what they are seeing in their parking lot: customers shopping.

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Will an auto bailout save local dealerships?
December 12, 2008

Korsey Smith, who is from Frisco, was at the dealership and said he found the minivan his family needs.

But Smith questions if a bailout for the US auto industry would really do any good.

"I realize they probably need some help, but another thing you have to look at is how they got there," said Korsey Smith.

A proposed auto bailout deal collapsed in the Senate on Thursday. But on Friday, the White House said it will consider using the $700 billion Wall Street bailout fund to prevent the auto industry from going under.

Local dealers understand that no matter what the government does, it's only going to be a short-term fix. It's the long-term fix that's causing the problem.

To fix the problem, dealers say more people need to buy more cars.

Alan Helfman has been the general manager at River Oaks Chrysler for 15 years. He said that without help, the economy would only suffer more.

"There needs to be bridge loans. We need just enough to get us by this little period until we can pay them back," said Helfman.

Smith said regardless of whether the bailout happens, he won't change his habits.

"I'm not going to stop buying a car because they are going under," said Smith.

Just like any smart car buyer should, he hopes his government does its homework and makes an informed decision before spending taxpayers' money.

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