How will the Obama Administration respond if Japan counters with a more or less direct stimulus to the Japanese automakers? (Or indeed the EU with European automakers) It doesn't seem that the US administration has any moral standing to object after all is said and done.

I agree that government patronage will give GM and Chrysler enough time to possibly kill Ford (or have them subsumed by the US Govt) but it creates a precedent which may be too distasteful to maintain. If this continues I can see a day where Abu Dhabi buys all of AMD or the EU does direct cash infusions to Airbus which would further illustrate the shaky ground that the US government has made with such an open-ended deal with the UAW.

The second thought I have is that when the actual meat of the deal is revealed Ford may be able to sue the US Govt at some point for price-fixing, unfair competition or predatory behaviour. These deals always seem to have nasty repercussions which may inhibit an outcome ideal to the Obama Administration.