Congress Puts Bailout On Hold
EmailABC News’ Z. Byron Wolf reports from DC:
With a whirlwind set of press conferences, supposed deals, nixed deals and frustration over whether to bail out the auto industry with $25 billion in low-interest loans or take the chance of letting it go bust, the Congress’s lame duck session keeps getting longer and longer.
Early this afternoon came word that lawmakers from states big into the US auto industry had crafted a bipartisan deal to take $25 billion Congress already appropriated to lend the auto industry to make more fuel efficient cars and use that money to make sure the American auto industry keeps making any cars at all.
But its unclear that the deal has enough votes to pass in the House, so Democratic leaders hastily called their own press conference to announce No Deal.
House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid said there will be more hearings on an auto industry bailout after Thanksgiving and that the manufacturers should present a detailed plan on how they will use taxpayer money to become viable, profitable companies again.
Then, if the plan gains traction, Reid said Congress will come back in session the week of December 8th to consider legislation.
We’re prepared to come back into session the week of December 8th to help the auto industry. But only if they present a viable plan that gives us in the Congress the confidence that taxpayers and autoworkers will be well-served," said Reid.
"Until they show us the plan, we can’t show them the money," said Pelosi.
So after Turkey Day, the auto execs will (presumably not in the chartered jets that left a bad taste in everyone’s mouth this week) return to Congress to ask again, more nicely, for their loans.
After Reid and Pelosi had their No Deal press conference, the bipartisan automaker state Senators, led by Democrat Carl Levin from Michigan and Republican George Voinovich from Ohio, filtered into the same room to tell reporters about the deal that is not.
Levin warned Reid and Pelosi that by delaying the auto company loans, they ware taking more responsibility if one of the companies goes under.
"Now, this is right smack in the Congress’ lap by the decision of the leaders. It is not in our lap today or tomorrow, the way we would’ve liked it and the way we propose it, working very hard on a bipartisan basis but by the decisions of the leaders, that they could safely delay a week or two while the plans are submitted and the Congress looks at them," he warned.
Levin and company complained that their compromise could have passed the Senate today, but they were not given the opportunity to have a vote on it. So while they are frustrated to have to wait to make their case, Levin said they encouraged that Pelosi and Reid today gave the auto industry another chance.
And he was animatedly frustrated with the Bush administration for not acting on its own to use financial industry bailout money (remember that bailout?)
Bankruptcy is not an option because it would mean dissolution and not Chapter 11, but Chapter 7, Levin said.
"Let me tell you something. We want to talk about responsibility. There’s risks in this delay. But the greatest responsibility, in my judgment, if any one of these companies go under in the next few weeks or because of this delay, won’t be because of the delay. It’ll be because of a decision by Secretary Paulson not to use available funds $700 billion in a stabilization fund. One — 4 percent of that is about $25 billion. One — and that’s what we’re talking about for the auto industry. One insurance company — one — that has made huge mistakes, AIG, has gotten $150 billion from this administration, and yet they’re not willing to use that fund, which has supplied a significant amount, by the way, to support that AIG loan, they are not willing to provide this $25 billion. That’s where the major responsibility would lie in my belief. However, this delay does create risks."
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What happens in the USA happens here in Canada, too. Enough of bailout talks for the auto industry! The companies got themselves into trouble and should get themselves out. Even if a bailout succeeds who on earth will purchase their cars keeping in mind that nobody has any money and the banks don’t loan any?!
Jim
Calgary AB
Posted by: Jim | November 20, 2008, 5:28 pm 5:28 pm
How about the gas companies bail out the auto industry. They where in cohorts with each other and drove so many into the ground with the high car prices and then with gas pricing spiking. It doesn’t make sense that Tax payers to pick up the pieces.
Also, all the CEO’s should step down and the companies should then be run by the tax payers, since we will be saving them while they’ve stepped on us.
Posted by: Leslie | November 20, 2008, 5:37 pm 5:37 pm
I am very concerned about the automotive crisis in America. I am not the only one that has a problem with not treating all industries fairly. Congress gave billions to Wall Street and the banking industry but no one seems to care about “the big three.” Billions were nearly handed to the banking indusrty with no questions asked. There was no proposal to say what they were going to do with the money, it was handed on a platter. The automotive industry should be bailed out, the trickle down would cost millions of jobs and money. Bailing out “the big three” is the only answer to this problem. If congress does not bail them out it shows that some industries are of higher importance. You can not hand money to the banking industry but let the automakers suffer, its unfair. The working class drives this country, without the automakers millions will suffer. Factories, restaurants, dealerships, and many other businesses will go under without the automotive industy, you can not let this happen!
Posted by: Kathy | November 20, 2008, 5:41 pm 5:41 pm
I’m against all bailouts unless the government is going to give the bailout to us struggling Americans. Why would Congress gives a bailout to Wall Street, AIG and not to the automakers. Oh, I guess the Democratic congress thinks that they need to prop up Wall Street and AIG and their pricy ways/parties/retreats but not American companies that provide jobs to American workers. Whatever Congress! I wish I could fire every single one of them and bring in every day Americans to take their place. Then their job would get done!
Posted by: RS | November 20, 2008, 5:41 pm 5:41 pm
I just read in my local paper that if they get there bail out they are thinking of moving south “Hub moving to the South to make a New Detroit. Now I’m confused, I thought one of the reasons these idiots want to be bailed out is to help save MI. They have cried & said that MI will be nothing but a state of ghost towns…So now they say they will take the money & run south. Sorry but i don’t want a bunch of two faced jefks in my back yard. Stay up north & take care of your own.
Posted by: Cindy | November 20, 2008, 5:49 pm 5:49 pm
Nice video coverage on CEO’s arriving on Luxury Jets. What about banks ceo’s who have received a bailout, have they sold their Jets.
Posted by: Mr. T | November 20, 2008, 5:59 pm 5:59 pm
I think they ought to treat this like federal financing of elections: add a check box to our 2008 tax return forms. “If you wish to donate a dollar to GM, Ford and Chrysler, check here. This will not increase your tax or decrease your refund.”
I wonder how much they’d get?
Posted by: Flick | November 20, 2008, 6:00 pm 6:00 pm
Oh, and by the way, do the math: If GM alone is burning through $2 Billion per month (!), how long will it be before the three of ‘em use up $25 B?
This “bridge loan” would be a bridge to where? To WHEN?
Posted by: Flick | November 20, 2008, 6:04 pm 6:04 pm
The Congress and the Senate MUST hold the automotive companies responsible for developing a serious improvement plan. This type of comprehensive plan cannot, realistically be done in a matter of 1-2 weeks. The auto companies have had years to do it, but didn’t. Now that Congress is passing out money, they are in line with their hands held out.
They haven’t done it to this point, they won’t be doing it correctly in a few short days or weeks.
I feel very bad about the labor impact but this is all supposed to be part of the competitve American market.
Bailing out the auto industry is NOT the way to fix the problem.
Posted by: JV | November 20, 2008, 6:05 pm 6:05 pm
This bailout needs to happen and soon. People keep focusing on being upset with the company leadership and totally disregarding the millions of people working for the big 3 and all their suppliers. These are millions of hardworking people that stand a great risk of losing their jobs. This will really hurt the economy and our industry base. This does NOT affect just a few states. This affects everyone. It affects your ability to get replacement car parts or even a car! This affects the amount of money available to the government to fund programs through loss of taxes. This affects our nation’s ability to step up and provide major manufacturing if a war required us to. This affects the viability of all industries that rely on people spending money. I should be Christmas shopping right now. Instead, because my husband is an engineer for Delphi and concerned about his job, we are NOT going to spend very much on Christmas this year. We are in save mode big time. Multiply that attitude by the other three million families in the same boat and the additional ten million ancillary people impacted by the potential job losses and you have a really low spending this holiday season. It just keeps spiraling on. Americans just need to realize this is one time they can’t say no. The big three would not even be in Washington if it weren’t for the credit crisis paralyzing the nation. The banking industry is NOT living up to the bargain of bringing liquidity to the market as part of their bailout. Get mad at the banks and not those affected by this situation.
Posted by: Maureen | November 20, 2008, 6:16 pm 6:16 pm
Isn’t this quite interesting. Politics as usual. Pelosi and Reid finally get smart and realize the need to cover their tails by demanding that the automakers present a detailed plan outlining how they are going to so effectively utilize any money given them that they won’t be back in a few months crying for more because the reality is that without something far more concrete than what anyone else in this whole bailout fiasco has provided, they know they can’t get the votes to get anything passed. AT LAST they are getting smart and giving more than mere lip service to the demand by tax payers that there be oversight and accountability – as well as viability. Too bad they didn’t make sure all that was in place before half of the TARP money was doled out. And interesting, Levin (the Democrat) infers that we don’t have time for all this plan stuff while Voinovich (the Republican) stands there inferring agreement but says nothing. Don’t want to get our hands slapped by our fellow party members, do we. So my next question is just how low are they going to set the bar on what this plan has to promise before they go ahead and try to pass it. Personally, I want the sale of those blastid private jets at the top of the list and the key to my new car, that I’m darn sure being asked to pay for, in hand. I’d like a fuel efficient model but we know American automakers don’t have many of those to pick from so would it be too much to ask if the color is red with tan (not leather) interior. I know, I know…beggers can’t be choosers – unless those beggers are CEO’s or union reps.
Posted by: Jackie | November 20, 2008, 6:17 pm 6:17 pm
I dont see the top exects giving up the millions of dollars they recieve for salarys to save their companys, like the small business owner has to do to keep things going
And I dont get to go to the goverment and ask for a loan, why should they
It seems like they are followling the investment companys lead,- their thought seems to be we are in trouble let the tax payer pay for our mistakes, our high salarys but lets lay off 50k workers that is stupid thinking FIRE them get someone else in their take their bonuses and apply it to what they are asking for sieze their assets (asses) and make them pay for the mistakes.
Posted by: R mckee | November 20, 2008, 6:17 pm 6:17 pm
the 700 billion should go to the tax payers. with the money we recieve would be returned by spending. some would buy a new car, a home, pay off credit cards.with this the auto makers, mortage companies credit cards companies would all recieve the money their asking for without paying the high price c.o.’s any extra cash.
Posted by: jude cole | November 20, 2008, 6:18 pm 6:18 pm
GM is blowing through 5b per month so a 25b bailout would only delay the inevitable. We shouldn’t reward companies that make bad financial decisions. Please contact your reps in Washington and email the White House to advise NO BAILOUTS for anyone.
Posted by: Roses | November 20, 2008, 6:21 pm 6:21 pm
I never thought I would say this, but it looks like Pelosi and Reid are starting to get the message. “House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid said …that the manufacturers should present a detailed plan on how they will use taxpayer money to become viable, profitable companies again.”
Congress will not give them a blank check. The average auto worker earns over $74 per hour, including benefits. Do the math. Without overtime and based on a 40 hour week, that’s $2960 per week or nearly $12,000 per month. Are you kidding me??? Teachers and public safety employees make far less. And don’t forget the CEO’s salaries, bonuses, perks (ie private jets) and golden parachutes when they retire.
They need to change how they do business or experience the challenges of Chapter 11 bankruptcy and reorganization.
Posted by: moder8 | November 20, 2008, 6:21 pm 6:21 pm
No matter how smart and capable those CEO’s are, they’re not worth getting paid $28 millions a year or $18 millions a year if they can’t make GM or Ford or Chrysler profitable enough to keep going, then they’re not worth a damn. The US corporate system is so rotten and poisonous that shareholders, workers and taxpayers are ripped off to fatten the big boys. How can they have the ball to go to Congress to beg for taxpayers’ money if they can’t make their products competing against the Japanese products. Shame on them!!! Let them go belly up. They deserve it.
Posted by: Concerned Citizen | November 20, 2008, 6:30 pm 6:30 pm
Problem Solved!! – Solution, who makes 40 billion dollars a quarter in profit?? The oil companies!! Get Ford, Gm, Chrysler execs to go ask them for a bailout!! Or how about a Saudi prince or two, pocket change to them!!
NO FEDERAL BAILOUT!!
Posted by: Bobby Bolders | November 20, 2008, 6:36 pm 6:36 pm
I say GIve me the EV1 car and you can get your bailout. NO ev1 Car no bailout.
Posted by: lala | November 20, 2008, 6:43 pm 6:43 pm
THIS IS… like giving money to homeless alcoholic in hopes he will buy food and not booze.
I have a feeling if they are bailed out, all the CEO’s will
put the money into their own pockets and not restructure their companies…. and then claim bankruptcy later on anyway.
Posted by: Squierghia74 | November 20, 2008, 6:44 pm 6:44 pm
Lets compare GM and Toyota employee cost. GM UAW worker makes around $70 an hour, this includes wages and benefits. A Toyota UAW worker makes $40 an hour, which includes wages and benefits. $70-$40 = $30 an hour difference in pay.
$30 X 40 hours = $1,200 an hour difference per employee in one week. GM has 150,000 UAW workers.
150,000 X $1,200 = $180 MILLION dollars difference in ONE week. $180 million X 50 weeks = $ 9 BILLION dollars difference in ONE YEAR between GM payroll and Toyota’s payroll. No wonder the BIG 3 is going broke. Reason #2 CEO’s and executive pay and bonus structure. Reason #3 GM still has 8 U.S. brands that it manufactures…Cadillac, Saab, Buick, Pontiac, GMC, Saturn, Chevrolet & Hummer compared to Toyota’s 3 brands and Honda’s 2 brands. GM has over 7,000 dealerships compared to Toyota’s 1,500 and Honda’s 1,000 dealerships.
GM is contractually required to support thousands of workers in the UAW “Job Bank” program, which guarantees nearly FULL benefits and wages for workers who lose their job due to automation or plant closing.
GM is also under contract to provide health coverage for union retirees.
Posted by: 55Mariposa | November 20, 2008, 6:44 pm 6:44 pm
11/17/08 UAW President, R. Gettelfinger is quoted as saying, “This industry is in a crisis situation NOT of its own making” There is no great mystery as to why this enormous decline in sales has occurred,” said Ron Gettelfinger, president of the United Automobile Workers union. “Because of the overall credit crunch, most families cannot get credit on reasonable terms to finance the purchase of a vehicle.” This UAW President is obviously on drugs if he thinks the current Auto crisis is due to the financial crisis. I guess it is not due to the fact that the UAW worker makes $70 an hour to screw in bolts on a car that last maybe 5 years.
Posted by: 55Mariposa | November 20, 2008, 6:47 pm 6:47 pm
Another case of the rich looking out for the rich, Paulson throws money at AIG, banks and Wall Street because it goes directly into the pockets of his pals. When it comes to providing a bridge loan to an industry that directly and indirectly employees a million Americans with living wage jobs, he, Bush and the Republicans say “let them eat cake”. The CEO’s who have plundered our industries for short term gain and shipped our jobs overseas need to hope they don’t drive America beyond the rule of law because we unkempt working folks know where the money is. Enough of free market and giving away American jobs, the US and other nations that can produce more food than we consume should immediately form OFEN (organization of food exporting nations)and explain to other nations our terms for food, how much we will provide and the cost, just as OPEC does to us now. Enough Mr. Niceguy, it is time to put American jobs and citizens first!
Posted by: outwest | November 20, 2008, 6:53 pm 6:53 pm
They’ve had a plan for the last 25 years. Planned obsoleteness, sell Americans junk and make more money fixing it when it breaks. In the long run you need to buy 2 American cars for every Honda. My Honda Accord V6 with dual exhaust is 5 years old, has 240 HP, never broken, AND GETS 30 MPG.
Posted by: John | November 20, 2008, 6:53 pm 6:53 pm
Maureen—- I believe that someone somehow needs to convince the American taxpayer that turning over $25billion to these guys will fix the problem. What I have seen on the testimony of the BIG3 to Congress leaves me quite convinced that they don’t have a clue as to how to fix this problem. Foe example 1) they all acknowledged they will need more money- very soon, 2)They have no business plan prepared to show how, where and for what they intend to use the money 3) when asked by congress “when will you run out of money”? They could not answer 4) When asked “what will you do differently to turn the business around to profitability”? They had no specific answer— just a lot of rambling. 5) When asked ” how did you come up with $25Billion”?— They really had no answer, it was obvious that they just grabbed a number out of the air! I’m sorry for the situation. I’m sorry for everyone affected. But that doesn’t make it right to expect the American taxpayer to hand over billions to throw down the same rat hole— what will be different??? The BIG3 has no answer to this question— What will be different?
Posted by: roscoe02 | November 20, 2008, 6:53 pm 6:53 pm
I cannot believe that those top auto execs flew to Washington in their private jets to ask for bailout money. The amount of money they make (salary, bonuses, and perks) is incomprehensible to the average American worker. I work at a hotel, and most of the people I work with live paycheck to paycheck. The auto execs make me sick — let them pay back their bonus money to their companies to bail themselves out!
And they can sell their private jets, yachts, whatever, and put that money in their company. We should not have to help them!
Posted by: J&N | November 20, 2008, 6:53 pm 6:53 pm
I think the big 3 do not deserve a bailout unless both they AND the union workers agree to serious cost reductions. That includes pay and benefits – all employees from the CEO to the janitor. Maybe the jobs so many gripe about would still be in America if they all were not so greedy.
Posted by: Kahn | November 20, 2008, 6:59 pm 6:59 pm
GM…. Gimme More
Posted by: Squierghia74 | November 20, 2008, 7:04 pm 7:04 pm
55Mariposa wrote: “..the fact that the UAW worker makes $70 an hour..”
Not at all accurate. In 2006, the latest data available, the average non-union Toyota worker made $60,000. The average UAW worker made $54,000. Yet Toyota and the European car makers made profit their strategy was to make better cars. Detroit’s was to sell American men on the idea that to be a man you have to buy a huge gas guzzler, which are Detroit’s highest profit-margin vehicles. The commercials all present a folksy, low-pitched voice telling us not to think about it too much, that’s just how things should be. What a crock!
Posted by: The_Mick | November 20, 2008, 7:04 pm 7:04 pm
The American Taxpayers should not have to shoulder any more bad financial decisions by corporate companies. Executives need to take a pay cut.
If Congress votes to bail out the Big 3, what is the taxpayer getting out of this. We should at least get a new car out of it. I’m sure they can find a way to right that off since they can afford to fly in private jets to D.C. to ask for OUR MONEY.
Posted by: Toma | November 20, 2008, 7:09 pm 7:09 pm
The foreign cars are beginning to pile up in the ports as well. The Republicans sure know how to spread poverty. It appears not to much is moving. Most of the foreign automakers are subsidized by their governments. The republicans have sure brought about a lot of shame to this Great Land. Jan 20th can’t come quick enough for me.
They are wasting money in the stock market. It will disappear like flatulence in the wind. Money can’t buy credibility. No amount of money will fix the stock market. I want to see those responsible for the looting on wallstreet in leg irons.
They should provide the automakers 25 billion each in exchange for getting high efficient new technologies on their lots by summer of 2010. Bypass the banks and use 20 billion to provide 0 % interest loans for all new technology vehicles and fire sale priced vehicles to move the existing inventory setting on their lots. No more than 2% of the 5 billion should be used for overtime to meet the deadline. This would encourage the hiring of new employees. The money should come from the bailout. Bypass the banks
Posted by: rightbehind | November 20, 2008, 7:11 pm 7:11 pm
I don’t understand why Congress insists upon a “plan” from the auto makers. Their plan is to run full speed ahead, despite the icebergs ahead. They will waste every single dollar they get their hands on, and absolutely NOTHING will change. If there is a union still affiliated with the auto industry, then it is doomed to failure. The unions (uaw, or whoever) is a human version of cancer, producing the very same results. I can’t (well actually I can), understand why the government won’t just let them go bankrupt. Nothing good will come of loaning them money. This passes, and the rest of us will get screwed again. NEXT CHAPTER! Eleven…
Posted by: Roy Savary | November 20, 2008, 7:19 pm 7:19 pm
Asking the auto companies for a plan isn’t too much.
They have admitted they are hemorrhaging billions a month, so why do they expect to be given a transfusion when they have no plan to stop the hemorrhaging?
The money should be used for companies that can be fixed.
Posted by: Give em a plan | November 20, 2008, 7:19 pm 7:19 pm
Give em a plan says “They have admitted they are hemorrhaging ”
I agree…stop the bleeding don’t just put a bandaid on the wound. Healing starts within…use some x-rays and look inside the company for where the bleeding begins.
Posted by: Kahn | November 20, 2008, 7:27 pm 7:27 pm
We must help the thousands of hourly workers.It’s the pompous and unbridled arrogance of these CEO’s that needs to be brought to heel,and their contempt for the “average guy” squashed.They are not “special”,nor do they deserve a salary that would rival a Saudi prince!Hey,like it,or lump it !
Posted by: Sharon W | November 20, 2008, 7:48 pm 7:48 pm
When will Washington wake up ? We have put them in office and pay them handsomely . Now , that mainstream America is in depression and we need real leadership from our elected officials , they bury thier heads in the sand . Political agenda has got America in this condition along with the promotion of personal agendas by polititions . We are not asking for a handout from Washington . They think we are asking for them to dig into their own pockets . It’s not senator or congressman “joe’s” money . It is the tax payers in America . We are those taxpayers . If they would take care of the peoples business instead of their own interests , we wouldn’t be in this shape . Why are we , the only self sustaining society in the world , buying foreign oil at such prices ? Why are we spending trillions of dollars in aid to the very people that are raping our society and killing our soldiers ? Why would anyone in government stomach such actions ? Pull all military protection back , stop buying their oil , close our borders , close our financial markets , sieze their assetts in America , stop educating and feeding these people and stop providing them with infrastructure that they blow up the day after it is built . Pool these resources together and fix our problems here at home . This will either lower John Q Public’s tax obligation , giving him more disposable income equalling recovery or use that tax base to give raises and health care and pension benefit to all Americans , equalling recovery , yet again . Oil prices go up to record highs = people stop spending . Realestate doesn’t sell and new cars sit on lots because of this . Now instead of econonic stability you have economic stagnation . When the money stops flowing from consumers , because they have to decide “do I eat , go to the doctor , buy my medication or heat my home and put gas in the car” , the economy stops dead in it’s tracts .Now , that this has hit home , politicians point fingers but don’t have answers . Well , I say take all perks away from politicians and let them survive on their salary , without free healthcare . I bet you they get off their ass and find solutions then !
Posted by: Upset | November 20, 2008, 7:55 pm 7:55 pm
Can the unions, they are bankrupting the industry. Nobody deserves $78 an hour to be an assembly line worker. No one! Get rid of the unions and their stupid demands, within a month or two the same workers will be back begging for a job. Willing to work for a quarter of their ridiculous wages and benny’s.
Posted by: Burn the union | November 20, 2008, 7:55 pm 7:55 pm
The big 3 have always paid their workers too much. (GM=GENEROUS MOTORS)
Next car I get will be a Toyota. We have enough other automakers to supply cars if these go down. Atleast for the people who can still afford one. The 3 can a flying leap. They will come back with a poor “deal” alright one that still makes them fat. And Congress will award their puny effort anyway.
Posted by: 4hevnsake | November 20, 2008, 7:56 pm 7:56 pm
Instead of giving cash to the auto industry why not do two things.
1-Give every family or single taxpayer a $20,000 tax credit to purchase a new American made car.
2-Freeze all american made car prices at their current level to prevent the car companies from profiteering.
Everybody wins.
Posted by: AZVet | November 20, 2008, 8:00 pm 8:00 pm
I think we are headed to something even worse than the Depression era of the 1930s. The rich will try to hold onto everything they have but I think eventually they will lose a lot of it! People are not spending money because the money is NOT there to spend! These execs are filthy rich! I have no pity for them; only for the workers who will lose their jobs and yeah some of them are making $30-$40 per hour. I could see this coming a few years back, and GREED is what caused it all! Now they’re sitting their begging with their tongues hanging out. Just like a greedy dog that never gets enuf to eat. Sad.
Posted by: liz | November 20, 2008, 8:16 pm 8:16 pm
Smart corporate leaders have recognized the value of restructuring during Chapter 11.
Pelosi and Reid are not making an extraordinary request. They are doing the job that needs to be done. They are asking for a plan which demonstrates that American taxpayers’ money will be used prudently.
The American auto industry has smart people in it. They understand the gravity of the situation. They know what they need to do. It is time to roll up their sleeves and draft a plan that makes financial sense.
This is not a complicated task. Honda and Toyota are doing it. [Maybe, our auto makers should try to recruit the best and the brightest from Honda and Toyota if they are unable to come up with a plan.]
The largest consumer of cars in America is the federal, state, county, and local governments. They work for the taxpayers. The customer wants American-made, energy-efficient cars that are just as good as the best made cars in the market.
If the American auto makers want taxpayers’ money to float their re-structuring effort, then they need to comply with the terms of the lenders / investors.
Ultimately, the American auto makers need to develop and manufacture cars that AMERICAN CUSTOMERS WANT AND an incentive program to motivate American buyers buy these cars.
PanAm, TWA and many other companies were part of the American corporate landscape. They are gone.
Continental went through Chapter 11. It emerged from bankruptcy with a new fleet of planes and higher plane load levels.
America’s big three auto makers should embrace the opportunity to get a “fresh start.” They can be part of America’s past or part of America’s future. It is their choice.
Next.
The confidence
Posted by: Sunhunterwith2 | November 20, 2008, 8:51 pm 8:51 pm
They can take their private planes and shove it you know where.
Posted by: disgusted | November 20, 2008, 8:58 pm 8:58 pm
It was elementary the auto execs come with a plan for the turnaround. Were I the president of an auto company heads would have rolled for such a mistake. Hopefully if they want to salvage their companies and have the concern they express for all of their employees they will develop such a plan with a presentation worthy of a bailout. Did they think the money was available just for the asking?
I hope they come up an understandable realistic plan that can work.
Again, that’s elementary!
Posted by: Larry | November 20, 2008, 9:06 pm 9:06 pm
I do not work for any type of automotive related business but I do not want to see millions of innocent Americans lose their jobs. If it was just the ceo’s who would be effected, that would be one thing, but it’s millions of hard working Americans and I believe that effect would be devastating for all of us, not just the hourly paid workers. I say give these automakers loans based on the number of workers they retain or relocate to another company and the number of workers they bring back to the US. Make sure every penny is ear marked for production of only fuel efficient automobiles with a 5 year unlimited mileage warranty. Zero percent financing of current vehicles that have already been produced or are in production with five year, unlimited mileage warranties. The current vehicles should be sold at garage sale prices to stimulate cash flow. One jet (if that is even necessary) per company, no perks or bonuses for any worker or any ceo and wage freezes for all workers for two years and no bonuses for ceo’s until the loans are repaid. I believe that’s a reasonable diet.
Posted by: KC | November 20, 2008, 9:12 pm 9:12 pm
I just drove in three states today passing
at least 15 different GM, Ford and Chrysler
dealerships. practically all were chock full
of cars and trucks. Then it hit me, if no one
is buying cars and trucks now, what will
this money be used for? To extend the
agony? Heck GM was already given a blood
transfusion from Pres Bush by giving the
Hummer and SUV’s a $25,000 tax break a couple
years ago while giving Hybrids only $2,000! Boy, if that’s a incentive to stay away from fuel efficient cars.
Did they allocate additional funds into making
hybrid cars more efficient than the Toyota Prius? Heck no! if so, where’s the beef ?
Posted by: spacerook1 | November 20, 2008, 9:21 pm 9:21 pm
The money is already approved. They will be getting it shortly. For all you folks with ties to the industry, relax. For all of you ranting and raving, the plans, cuts, re-designs to make the Big 3 get back on track and once again manufacture the best cars in the world are already being implemented and will continue. “Made In America” will mean something you can be proud of again.
Posted by: jjw555 | November 20, 2008, 9:27 pm 9:27 pm
Please stop using the term “Bailout”. They are going to get loans. Loans they will pay back with interest. GM alone has $25 BILLION of un-encumbered assests. That means they own them free and clear. If it were not for the current money crisis, they would normally borrow against that. Since Wall st, Freddie & Fannie, and AIG undermined our financial system, there are no bank loans to be had. Those are the plain and simple facts. Stop being typical knee-jerk reactionaries popping off after listening 30 second sound bites.
Posted by: jjw555 | November 20, 2008, 9:33 pm 9:33 pm
Nice video coverage on CEO’s arriving on Luxury Jets. What about banks ceo’s who have received a bailout, have they sold their Jets.
Posted by: Mr. T
********************************
Also, all those Senators and Congressmen within
a 200 mile radius of the Capital should take
Amtrak! Heck if Biden has been doing it for years,
there is NO excuse! They are talking like the priest
preaching to the choir, what a joke!
BTW, I’ll bet you that after a week in this scenario,
Amtrak will mysteriously be awarded those much
needed funds for expansion and infra-structured
upgrades.
Posted by: spacerook1 | November 20, 2008, 9:34 pm 9:34 pm
spacecrook, if you drive by Toyota and Honda dealers, you will see those lots also full. That’s why they are offering 0%financing. There sales are off over 25% because of the economy. As far as a toyota Prius, the money spent by consumers will never payout a savings in their investment. Plus, at 100,000 lucky Prius owners will fork out $7500 to $8000 for a new battery. If Prius owners all think they are being green, think again. They manufacture and shipping of a Prius and their batteries result in a carbon footprint over twice as heavy as a Hummer H3 over 150000 miles. Fact.
Posted by: jjw555 | November 20, 2008, 9:39 pm 9:39 pm
Let’s hope Obama and his leftist illuminati cabinet don’t try to jump in and bail out the automakers. They could have changed their management and production processes years ago and avoided this situation, but they turned a blind eye to it.
Posted by: Jeff | November 20, 2008, 10:15 pm 10:15 pm
I am a US citizen and have worked for the standards I felt were for a free nation, the USA. My husband and I both come from families who have immigrated to the USA. We both pursued a college education, and have raised our children
with what we believe are high standards.
We are appalled at the current economy. I have a nursing education, and am probably safe: my husband is a scientist and has spent 29 years at Ford Motor with the expectation that he would have a relatively safe retirement.
Our government has let foreign markets into our economy with no
restricstions. Try selling an An MERICAN made vehicle in a foreign market with the same loose restrictions.
Posted by: Paula Kaberline | November 21, 2008, 12:06 am 12:06 am
fire CEOs then Bailout or no Bailout.
by using private jets would enough $$$ for Bailout.
Posted by: AJ | November 21, 2008, 2:12 am 2:12 am
Question. Why are we worrying about how the CEO’s live there lives. We should be more worried about the economy. I say we should give them the bailout because it would significantly hurt our economy if even one of the auto makers would to fail.
Posted by: Zachary K Nordyke | November 21, 2008, 2:31 am 2:31 am
AIG & wall st are not living up to the deal they made in september… so no more for them… take what was offered to the wall street theives and start the bailout of the auto makers but will congress be completely on top of this deal and hold their feet to the fire and make them keep the deal that’s agree on.
Its going to be so much worse and the theives and liars on wall street need to be striped of their assests and multi houses and corporate jets.
NO ONE IS WORTH WHAT ANY OF THEM ARE PAID> THEY ARE SO OUT OF TOUCH WITH REAL LIFE THAT THEY DON’T GET IT AND NEVER WILL WHILE THEY ARE ALLOWED TO CONTINUE THEIR LIVES AS THEY KNOW IT.
Posted by: WaianaeGal | November 21, 2008, 3:20 am 3:20 am
Wasn’t it Lee Iacocca who worked for 1$/year while rebuilding Chrysler? How about some concessions from the top level management of the “big 3″? A little good faith would go a long way with public opinion.
Posted by: dk | November 21, 2008, 6:47 am 6:47 am
OK, it’s time for some simple economics 101. Taxpayers like you and I have to pay for all these bailouts.
How do tax payers pay for bailouts with no job? How do you pay your mortgage with no job? How do you feed your family with no job?
Bottom line, the government won’t have the tax revenue in the future to pay for any of these bailouts. At this point, it’s every person for themselves and abandoned ship.
Now my state (Oh) wants to raise taxes because the are going broke. Guess what, with the amount of jobs lost in this state only working people (fewer every day) will be able to pay more taxes and most will then be pushed over the edge into bankruptcy.
Talk about a domino effect. I’ll say it again, it’s everyone for themselves, including the automakers….NO BAILOUT, UNLESS YOU START BAILING OUT US FIRST!
Posted by: Independent minded | November 21, 2008, 7:46 am 7:46 am
“Failure is the opportunity to begin again, more intelligently.” — Henry Ford
Posted by: kirk white | November 21, 2008, 9:01 am 9:01 am
Enough is Enough I say let them sell the jet that they do not need.
Posted by: Bob | November 21, 2008, 9:44 am 9:44 am
The solution to this seems rather straight forward. We need to get financial institutions lending, we need to get money into the automotive industry so they can keep people working. Take this bailout money, and create a loan program for banks to use for people who buy American built cars. Financials start getting things flowing, which may unjam other areas. The car companies start selling, and might look more viable for private sector funding. People get loans for cars which they can’t get now. The taxpayers get at least some of the money back as the loans are repayed. win win win win.
Posted by: howwouldiknow | November 21, 2008, 9:51 am 9:51 am
my husband, a retired GM – UAW employee was making $23.00 an hour when he retired 12 years ago, add on another $20.00 for benefits….which they fought very very hard for…..where in the world is this $70+ coming from…..since he has retired we have made several concessions….the truth has got to be known out there…all these fabrications have got to stop…..I do not blame the Senate for asking for account report from the BIG 3 execs next month…it all seems very reasonable to me…remember its not the execs you are helping with this LOAN, it is the working man and woman out there….as for spending money this Christmas…we are not buying presents for any adults in our family, just the children….if that doesn’t hurt the economy and wake them up also as for the ripple effect….nothing will…I personally am promising myself that any Senator who refuses to at, least consider the loan, will never get another of our hard earned money spent in their state, listen up Sen. Shelby….what a phony….no wonder he was saying “let em fail” after we learn what his state did for Mercedes and what all the state employees drive around there…..at least admit to what is going on in your own state……there is a lot of UAW retirees out there who travel, and we will survive somehow even if we have to return to work at our old age…but we will still be spending…those pennies sure add up after awhile…..people please know the truth before putting your fellow Americans down….
Posted by: Judy Lemaster | November 21, 2008, 9:57 am 9:57 am
If the government gives them a loan to keep going they would also be insuring jobs for us….But I think the big three should have to accept government terms as to how the money could be spent and perhaps also some government oversight. When our schools have problems the state steps in so why not the automakers…The auto industry is too important for all related businesses to just let them fail.
Posted by: AnnD52 | November 21, 2008, 9:59 am 9:59 am
I’m with you Jim who can afford the cars the big 3 are pumping out maybe the CEO’s should take a salary cut and give the line workers a raise there the ones busting their buns for the auto-industry not the CEO’s that like to fly in there private jets. The one thing I’m disgusted about is the CEO from Ford lives in Seattle and flies back every weekend no wonder there going under give me a break fire all 3 CEO
s and hire 3 more at a more reasonable salary. RS it wasn’t just the democrats that ok’d the bailout for AIG there are more republicans in the Senate right now than democrats the republicans have the majority right now so if your going to blame anyone blame them and BUSH who have put this country in financial turmoil for the last 8 years lets make sure the blame goes to the right person. EJ
Posted by: EJ | November 21, 2008, 11:04 am 11:04 am
what a novel idea…Planning before spending….hmmm maybe that will catch on
Posted by: gloria | November 21, 2008, 12:18 pm 12:18 pm
What is so difficult about the concepts of accountability and pay for performance. And why wasn’t this concept put into place for the financial industry? How much of that money went into the pockets of Paulson’s friends. What an absurd waste and it has done NOTHING for the economy. I am for major oversight on every company that needs a bailout, with major consequences for failure to comply. And get rid of the current executives. None of them can be trusted.
Posted by: DaveM | November 21, 2008, 3:37 pm 3:37 pm