Big Three Auto Bailout: Back From The Dead?
EmailGood update here from ABC’s Jonathan Karl on Capitol Hill:
"They say the darkest hour is right before the dawn" — a poet from Minnesota
The New York Times website declares "Auto Bailout Appears Dead." They said the same thing about Lazarus. This Detroit rescue plan may yet die, but it isn’t dead yet.
In a bid to resurrect the bill, Democratic Senate Majority Leader Harry Reid is in talks with Republican Bob Corker on crafting yet another compromise. Corker, who has been steadfastly opposed to the bill drafted by Congressional Democrats and the White House, has a lot of credibility among Republicans on the issue.
"I am at the negotiating table," Corker told ABC News. "We are working on a great solution and I think there is a great possibility that we can make it work."
Several Senate Democrats confirmed the negotiations are underway and said the talks are a serious, late-in-the-game effort to get a deal that would have enough votes to pass the Senate.
Corker proposed compromise would require the auto companies to reduce company debt by two-thirds and to negotiate a new labor deal that would make labor costs for the American automobile companies the same as labor costs for foreign companies who operate plants in the United States. Under Corker’s proposal, Chrysler and GM would get $14 billion in loans up front, but would have to give the money back if the changes were not implemented by March 31.
In addition to meeting with Democratic leaders, Corker has met today with UAW representatives and talked to executives at the Big Three.
There has been vocal Republican opposition to any bailout for Detroit, but there are at least a dozen Republican Senators who could be convinced to support emergency loans for Detroit. Among them are several who are retiring, including Sen. Chuck Hagel (R-NE), Sen. John Warner (R-VA), Sen. Ted Stevens (R-AK) and Sen. Pete Domenici (R-NM).
"This is not the time to let these companies go bankrupt," Sen. Domenici told ABC News. "We would just be compounding our economic problems."
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Is it any wonder most Republicans are against the Auto bailout. A majority of Republicans are anti union and pro business. If the Auto Industry goes into bankruptcy, the unions will be broken. Then the corporations can pay the workers less while keeping the costs of the autos the same so the company makes more money. Does anyone really think that the big 3 will decrease the cost of the autos, even though the cost to build will decrease? The Republicans are more for companies than the American people. If the big 3 go bankrupt, the country will go into a depression, but as long as the rich still have money, nothing else will matter. The little guy will suffer, as per usual with the current administration.
Posted by: Mike | December 11, 2008, 3:47 pm 3:47 pm
If this fails and the Big 3 go bankrupt and the economy tanks expect the GOP to be a minority party for decades.
Posted by: Reilly | December 11, 2008, 4:12 pm 4:12 pm
But then again if the Republicans kill the bill out of their anti-union sentiments, then they’re self destructing all the more. The fallout for them would be enormous if the country’s auto manufacturing went down. It will probably get passed with a tiny and cliff hanging margin.
Posted by: kat | December 11, 2008, 4:13 pm 4:13 pm
But then again if the Republicans kill the bill out of their anti-union sentiments, then they’re self destructing all the more. The fallout for them would be enormous if the country’s auto manufacturing went down. It will probably get passed with a tiny and cliff hanging margin.
Posted by: kat | December 11, 2008, 4:13 pm 4:13 pm
Mie,
Like most democrates, the unions are a socialist organization. Most union members are so stupid that they would rather let their jobs go away permanantly than cut a better deal to save them. If I were making $32.50 an hour and my company said we need you to make $28.50 per hour or we will go broke in a feew weeks, I would do it for my family. Then again, I’m one of those dumb guys that still believe in our country and would’nt give a fat cat union idiot a nickel of my money only to have them run my company in the ground. I guess you guys have it all figured out. Funny thing, most of the biggest companies that are in trouble in our countyry at the moment are unionized. Hummmm
Posted by: Geno | December 11, 2008, 4:17 pm 4:17 pm
This bailout needs to be examined with a fine-toothed comb. Did you want to just hand the checks over to those three guys who flew into town with their private jets? They had no plan – just a request for the dough.
What changed?
So now, thanks to the Republicans, changes will be made. Maybe – just maybe- the industry will now have a chance.
Pelosi, standing on the steps on the senate screaming like a crazy person, does not instill confidence.
Posted by: reading the fine print | December 11, 2008, 4:40 pm 4:40 pm
The republicans are for NOT rewarding bad management and making people accountable for their decisions. Unions only bleed companies dry while lining their own pockets. This bailout will cost the american taxpayers money. I do not want my hard earned money spent this way. People should not be paid to do crossword puzzles all day.
Unions and Democrats prey on the uneducated, most non union company benefits are much better than union benefits, people are just to stupid to know that and believe what they are told by union reps, there was a time for unions but that passed 50 years ago. If not for the union the big 3 wouldn’t be in this problem.
Bankruptcy solves the union problem. They can reorganize, there are enough people out work to fill all union positions for much less money.
Posted by: HH | December 11, 2008, 4:56 pm 4:56 pm
Nice to see anti-union zealots like Geno and HH come in and confirm that what the Republicans are doing is nothing more than union-busting — even if it means plunging this nation into another Great Depression.
Never mind that the UAW has bent over backwards several times in negotiations to help the Big 3. Never mind that the leading figures of Republican opposition — McConnell, Corker, and Shelby — all have state-subsidized and non-unionized foreign auto companies that are flourishing in their states. Never mind that said senators are so stupidly self-centered and myopic that sending the rest of the states into an even deeper economic hole will mean even Honda, Toyota, Mercedes, et al won’t be able to sell cars in the U.S.
And never mind that Chinese auto companies are likely to snap up the factories of GM and Chrysler, thereby selling out whatever is left of American industrial capacity to the next economic power.
If all of that is the price to pay for taking out the UAW, these Senators — and their acolytes on boards like this — apparently think that’s a decent price to pay.
I pray to God the rest of the Senate are smarter.
Posted by: Edgewater Joe | December 11, 2008, 7:23 pm 7:23 pm
“Funny thing, most of the biggest companies that are in trouble in our countyry at the moment are unionized. Hummmm”
What union ran AIG and Lehman Brothers? How about Goldman Sachs or CitiBank? Oh, those companies were nonunionized. I guess your “point” is senseless.
Posted by: Tom In Texas | December 12, 2008, 6:12 am 6:12 am
“Funny thing, most of the biggest companies that are in trouble in our countyry at the moment are unionized. Hummmm”
Is it possible to say anything stupider than this? I don’t think so.
Is KB Toys unionized? Citigroup? AIG? Wachovia? Washington Mutual?
HH and others are mostly interested in seeing the wages of working stiffs go down. Good, solid Republicans.
Posted by: Pug | December 12, 2008, 10:05 am 10:05 am
CHAPTER 11. Not Socialism. Unions are getting what they deserve for feasting on the body of the Auto Companies until there is nothing left but hollow corpse.
Posted by: Rufus T. Firefly | December 12, 2008, 12:17 pm 12:17 pm
My husband union is 686 out of Lockport,NY. And My husband worked for Sherwood of Harsco from Niagara Falls,NY.Windpoint bought out Sherwood and put Taylor-Wharton International LLC from Mechanicburg,PA in charge Sherwood , and the union would not do anything. No new contract when a new company takes over. They offer Delhpia buy outs but not Sherwood employees. They close down two Months ago. The Union 686 DID NOTHING, It is the same union as Delphia and is part of General Motors and other car companies.They got NO Sevenence they pay for No insurance.My husband has to pay our insurance every two weeks.He pays taxes on unemployment and it leaves little for our bills.We have no retirement because we need it for Bills. Thank you UAW 686 and Thank you Windpoint Patners out of Chicago,IL 60611 and Taylor-Wharton International LLC. Merry Christmas to all of you. The Fekete’s
Posted by: Heather | December 23, 2008, 9:19 pm 9:19 pm