Meet ‘New Chrysler’
EmailABC News’ Jake Tapper, Rachel Martin, and Sunlen Miller report:
President Obama today announced his support of Chrysler going into bankruptcy –- a move he said will give the “icon of America’s auto industry” a “new lease on life.”
“Over the past month, seemingly insurmountable obstacles have been overcome,” President Obama said, noting that from UAW to Chrysler’s largest stakeholder, they agreed to major sacrifices during the 30 days the president imposed on them. “So, today, I am pleased to announce that Chrysler and Fiat have formed a partnership that has a strong chance of success.”
A senior administration official described the deal as "one that we believe will make Chrysler a much stronger company going forward, will make it viable and will make it again a leading company in its industry. … We have successfully achieved what was clearly the better outcome of the company and for all of the 35,000 workers at Chrysler and for all of the stakeholders.”
The announcement includes the decision to move Chrysler through a "short, surgical bankruptcy" in a New York court using Section 363 of the bankruptcy code "to clear away the remaining impediments to its successful relaunch."
“I’m supporting Chrysler’s plans to use our bankruptcy laws to clear away its remaining obligations so the company can get back on its feet and on to a path of success.” The president said, and then attempted to preempt the stigma which surrounds the word "bankruptcy" by adding, “No one should be confused about what a bankruptcy process means. This is not a sign of weakness, but rather one more step on a clearly charted path to Chrysler’s revival.”
Afterward, the newly restructured Chrysler will emerge, and apparently be called "New Chrysler."
The administration official said the deal is close to the plan the president agreed to 30 days ago.
"We worked very hard to keep this company out of bankruptcy, we dealt with every stakeholder, we achieved enormous sacrifice from many of the stakeholders including UAW, including the major banks that are lenders to this company," the administration official said. "But unfortunately not all of the banks were prepared, and lenders were prepared to participate in this program. And so with reluctance we have made the decision to go through this surgical bankruptcy process."
The president today said that the partnership was made possible by the sacrifices of some shareholders –- and specifically mentioned UAW, JPMorgan and the German automaker Daimler -– as key in making this progress.
“While many stakeholders made sacrifices and worked constructively, I have to tell you, some did not,” The president countered. “In particular, a group of investment firms and hedge funds decided to hold out for the prospect of an unjustified taxpayer-funded bailout. They were hoping that everybody else would make sacrifices and they would have to make none. Some demanded twice the return that other lenders were getting. I don’t stand with them.”
Obama said that because UAW and many of the banks and biggest stakeholders in this process have already aligned, the process will be quick and efficient.
“I know that there are some who will insist that bankruptcy, even for these limited purposes, is a step that should not have been taken. But it was unsustainable to let enormous liabilities remain on Chrysler’s books, and it was unacceptable to let a small group of speculators endanger Chrysler’s future by refusing to sacrifice like everyone else," he said.
The president –- flanked by his Auto Task Force -– expressed confidence in these moves.
“We can make great American cars. Chrysler and G.M. are going to come back. And I am very confident that we’re going to be able to make, once again, the U.S. auto industry the best auto industry in the world,” the president said.
More details of the plan:
1. U.S. Government Assistance
Working Capital: The U.S. government is prepared to provide approximately $3.3 billion in debt or in possession financing to support Chrysler though an expedited chapter 11 proceeding.
Loan to the New Chrysler: Upon closing, the U.S. government is prepare to loan approximately $4.7 billion to New Chrysler, in the form of a term loan with $2.1 billion due in 30 months and the balance 50 percent due on the 7th anniversary and 50 percent due on the 8th anniversary of the loan. The interest will be an appropriate combination of cash and payment-in-kind. There is also an additional note of $288 million which is a fee for making these loans. These loans will be secured by a first priority lien on all of Chrysler’s assets.
The U.S. Treasury will receive 8 percent of the equity of New Chrysler. Treasury can select four independent directors initially but after that will play no role in governance or management of the company.
2. Bankruptcy
The bankruptcy will be short, 30-to-60 days, filed "immediately" in a New York court. (Why New York? Answer: The New York courts have experience in these dealings and can handle it most efficaciously, the official said).
3. Financing
The financing for this "New Chrysler" will come from GMAC. GMAC will get financial support from the U.S. government in order to expand their portfolio to include Chrysler.
4. Canada
Chrysler is getting a big boost from North of the border — Canada will contribute one dollar for every three dollars the U.S. government contributes.
The governments of Canada and Ontario will together receive 2 percent of the equity of New Chrysler. Canada gets to appoint one independent director, on the same basis as the four chosen by the U.S.
5. FIAT
FIAT did not have any particular input into the bankruptcy decision and apparently left that to the Obama administration. This alliance will create the sixth-largest global automaker.
FIAT is contributing "billions of dollars in advanced technology and intellectual property and offering Chrysler access to a global distribution network. FIAT’s technology will allow Chrysler to build new fuel efficient cars in engines in U.S. factories."
FIAT will contribute a free license to use all of its intellectual property and "know how" to capitalize Chrysler in exchange for 20 percent of the equity of the reorganized Chrysler.
FIAT will have the right to select thee directors of Chrysler once reorganized, will have the right to earn up to 15 percent in addition equity (in three tranches of 5 percent, each in exchange for meeting performance metrics — including introducing a vehicle produced at a Chrysler factory in the U.S. that performs at 40 mpg, providing Chrysler with a distribution network in myriad foreign jurisdictions, and manufacturing state-of-the-art, next generation engines at a U.S. Chrysler facility.)
New Chrysler will purchase substantially all of the assets of the old Chrysler out of a chapter 11 bankruptcy in exchange for a $2 billion payment to its secured lenders.
6. Creditors
Chrysler’s largest secured creditors have agreed to exchange their portion of the Company’s $6.9 billion secured claim for their pro-rata share of $2 billion in cash at closing.
Daimler, Chrysler’s current minority shareholder, has agreed to waive its share of Chrysler’s $2 billion of second lien debt, give up its 19 percent equity interest in Chrysler’s ultimate parent, and settle its guaranty obligation to the PBGC by agreeing to pay $600 million to Chrysler’s pension funds.
Cerberus has agreed to waive its share of Chrysler’s $2 billion of second lien debt and forfeit its entire equity stake in Chrysler. Cerberus has also agreed to transfer its ownership of Chrysler headquarters in Auburn, Michigan, to the new Chrysler alliance. Lastly, Cerberus will contribute a claim it had against Daimler to assist in the Daimler settlement with PBGC.
7. Layoffs?
There will be no layoffs associated with the bankruptcy. Although dealerships will eventually take a hit and will be closed over time. Unclear at this point exactly how many.
8. Operations
The company will be able to operate normally during the bankruptcy process — Americans will be able to buy Chrysler cars and warranties will be honored.
9. Concessions, Health Care & Pension Plans
The UAW made concessions on wages, benefits and retiree health care.
Chrysler Pension Plans will be preserved and their stability will be strengthened from a Daimler contribution of $600 million.
The New Chrysler will establish an independent trust (VEBA) that will provide health care benefits for Chrysler’s retirees. (VEBA will be funded by a note of $4.6 billion payable over about 13 years with a 9 percent rate of interest, and will receive 55 percent of the equity of New Chrysler. VEBA will select one independent director and will have no other governance rights.)
“The president announced 30 days ago when he spoke, that if we were not able to achieve the appropriate level of shared sacrifice from all of the stake holders that it would be necessary for Chrysler to go though a surgical short bankruptcy in order to finish the restructuring of its balance sheet and emerge as a properly capitalized company that could be competitive," the senior administration official said.
– Jake Tapper, Rachel Martin, and Sunlen Miller
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Are these billions included in Budget or New Budget?
Posted by: MayBee | April 30, 2009, 12:33 pm 12:33 pm
I’m not sure I understand this “small car technology” thing that Fiat is contributing. You mean to tell me that none of our automakers could figure out how to make a small car? They operate in Europe and Asia where small cars dominate the markets. They couldn’t take a Fiat apart and figure it out? I’m positive that they could, but American buyers don’t want small cars. People are saying it loud and clear. They want BIG! Big SUVs, big Cadillacs, big Lincolns, etc. Even our small cars are big! Just look at how the Mustang started and what it looks like today! It was the car companies that sold the US consumer on the bigger is better theory and we took it hook line and sinker.
Posted by: Jon | April 30, 2009, 12:57 pm 12:57 pm
Many of the financial ‘talking heads’ who relentlessly speak about free enterprise, and no government intervention remind me of a movie.. in the movie hackers bring down the financial systems, power, communication and even take control of traffic lights….
The ‘good’ hacker comes to realize that his ‘theory’ of letting the whole system fail, and then hoping it gets rebuilt in the ‘right way’ was in error and the actual cost to people and society was greater than he imagined.
This movie plot seems to be what many on the ‘right’ advocate, let it all fail, the banks, automotive industry etc.
The ‘rights’ lack of common sense is breathtaking ….
Posted by: USA | April 30, 2009, 12:59 pm 12:59 pm
THE BAILOUTS DON’T WORK!!! THANKS FOR TANKING THE ECONOMY OBAMA!
Posted by: d | April 30, 2009, 1:01 pm 1:01 pm
When will this insanity end?
My prediction is through continued deterioration of sales (in part due to U.S. consumer backlash, in part due to production of cars U.S. consumers do not want), government/political meddling (through politically motivated policy and diktats), and union inflexibility the “New Chrysler” is doomed for failure.
It’s not a question of “if” it is is a question of “when”…
Posted by: tjp612 | April 30, 2009, 1:06 pm 1:06 pm
“The economy was in the ——- long before Obama even took office.”
Yes, and Obama has ensured the economy won’t get out of it any time soon.
Posted by: ceeLeelee | April 30, 2009, 1:12 pm 1:12 pm
D’ the economy is in the tank and everyone keeps blaming Bush. They forget who was in control of some key offices the last two years. Franks, Waters, Dodd. They forget that the warning was given about fannie and freddie and where acused of being racists. But now its all come to light and what do they do? Cover the butts and blaming on others who had no control of the banks or lending. Now we have a hosue full of crooks. Tax cheaters and a tax cheater and baby killer in HHS. Thanks can doers
Posted by: Jim Rod | April 30, 2009, 1:13 pm 1:13 pm
small cars by the time they pass govt emissions and safety tests they will not be a cheap option for the amarican people Like the all wise speaker of the house praised the ford feista in europe were they dont need to meet all the regs of hear in the us well thats just big govt for you
Posted by: biggovt | April 30, 2009, 1:14 pm 1:14 pm
New Chrysler?
New Coke!
Anybody remember that?
Posted by: midcal | April 30, 2009, 1:19 pm 1:19 pm
The union and the Federal Government own 63% of this new entity? I’m sure they will take the car industry by storm.
Posted by: DisgruntledVet | April 30, 2009, 1:19 pm 1:19 pm
How quaint, after they ask for billions, they declare bankrupcy…. This is not the failure of the Obama Administration…. I’m in the wrong business….
Posted by: Spartan Phoenix777 | April 30, 2009, 1:22 pm 1:22 pm
Yippppieeee Kai Yeehhhhhhhh!
Posted by: Jim Bob | April 30, 2009, 1:23 pm 1:23 pm
I will NEVER buy an American car again as long as this government has their hands in the pie. I refuse to support the UAW how greatly helped sink these companies in the first place.
Screw ‘em.
It’s Honda, Toyota, Mercedes or KIA for me.
Posted by: Spanky | April 30, 2009, 1:24 pm 1:24 pm
Jon, I think that many Americans today are seriously considering smaller vehicles with greater MPG over larger ones with lower MPG. It seems to me that only the “bigshots” who think they still have lots of dough to blow are still buying SUVs and other large vehicles.
Posted by: Tony | April 30, 2009, 1:24 pm 1:24 pm
Bankrupt Chrysler + Fiat + Obama = company totally gone in 9-12 months.
Who wants to buy a Fiat-Chrysler?
Last quarter Fiat reported a loss of nearly $600 million.
Posted by: Sally J | April 30, 2009, 1:25 pm 1:25 pm
Never buying an American car again. Your move Obama.
Posted by: Spanky | April 30, 2009, 1:26 pm 1:26 pm
Toyota or Honda will have my business from now on! Great quality, Great mileage, NO OBAMA!
Posted by: anti-obama/pro-american | April 30, 2009, 1:28 pm 1:28 pm
At long last, the chickens come home to roost for the unions. It is about time.
In bankruptcy, Chrysler will dump its union contracts, its pension plans, its legacy health care costs, and renegotiate with suppliers.
The problem may now become whether GM and Ford can compete with a leaner Chrysler, and it that does become the problem, then, will GM and Ford follow suit?
Posted by: Scott | April 30, 2009, 1:28 pm 1:28 pm
I think they should call it “Chrysler Neo” (if they want to sound catchy) or “Chrysler Nova” (if they want it to sound more classy). (“Nova” is one form of “new” in Latin.)
Posted by: Tony | April 30, 2009, 1:28 pm 1:28 pm
Loose the Suvs there not wanted anymore Make your cars More Fuel Efficient Give good Warranties and Maybe you will come back
Posted by: Angie in Pa | April 30, 2009, 1:29 pm 1:29 pm
The announcement includes the decision to move Chrysler through a “short, surgical bankruptcy” in a New York court using Section 363 of the bankruptcy code “to clear away the remaining impediments to its successful relaunch.”
=======
A new business relaunch is one thing, but new cars won’t be ready to move through the production pipeline and available for sale any time soon.
They are going to come out of bankruptcy with the same products they have now, and it seems people don’t want to buy them.
I wish Chrysler luck.
Posted by: MayBee | April 30, 2009, 1:30 pm 1:30 pm
Get a grip I am not sure we are going about this the right way I think it is terrible that Chrysler had to join forces with foreign auto maker as it just lets the foreign company geet a stronger hold on America, We need American workers with American autos. We can and do build quality cars and trucks here. If the Republican polaticans were not so quick to give every thing away we might not be where we are today. I think we need to stop blaming the UAW and the workers and put blame where it belongs and that is the government and the policies they have put into effect concerning world trade. We will take in all comers but we are very restricted on what we send over seas. Also when they get cheap labor fron over seas the price of the product is not reflected in that labor savings and it was meant to put more in the pockets of CEO and share holders.
Time to stop complaigning and get it turned around. I hope and am very confident in General Motors and I hope they do not sell out to foreign car company to rebound.
Posted by: B. Miller | April 30, 2009, 1:30 pm 1:30 pm
Ford isn’t taking any bailout money.
They are the one American car company trying to compete on its own merit.
Posted by: MayBee | April 30, 2009, 1:31 pm 1:31 pm
I also read lose the SUV Are you nuts. I know everyone I talk to says electric cars are not the answer. Lets get jobs and the economy back find cheaper fuel at home or where ever and I for one want a big truck as I can not use a small electric truck for nothing what will it be capebable of towing ??
Posted by: B. Miller | April 30, 2009, 1:33 pm 1:33 pm
Sally, how much did chrysler burn through in that same period? Jon since americans have “demanded” bigger, larger, more manly vehicles, many of our auto companies neglected to specialize in the small car sector. Fiat knows the “quirks and tricks” to getting a small car that can still be worked on without cutting it in half. Kinda like if Fiat needed expertise in building a HMMWV, they’d probably ask AMG.
Posted by: ray hagermann | April 30, 2009, 1:34 pm 1:34 pm
This is the problem USA. Our American car companies have produced vehicles based on consumer demand. Let’s face it, very few people want small vehicles today and those of us that have them, only do because we can’t afford the big ones. Yes, everyone agrees with the alternative fuels, hybrids, etc., but not the size of the vehicles. Furthermore, after they start making all of these changes, I believe the vehicles are going to be unaffordable for most of us. I’m still trying to figure out why the government keeps pushing “small vehicles” – that’s not what most people want.
Posted by: MI | April 30, 2009, 1:35 pm 1:35 pm
I have one real concern and what we will call the president from now on Will it be president of the USA or will it be CEO Obama. I do not think he has any idea how auto industry functions. I know he wants total control but when will it stop. I voted for him but I am not sure if it was the right move. I want to give him every chance but I am getting skeptical
Posted by: B. Miller | April 30, 2009, 1:35 pm 1:35 pm
Ford has no federal loans or guarantees. They are not run by obama
Posted by: Thomas | April 30, 2009, 1:37 pm 1:37 pm
Fiat is a very corrupt company and have been fined often in the past Chrysler does not need that. I am also wondering what a Fiat Jeep will look like
Posted by: B. Miller | April 30, 2009, 1:37 pm 1:37 pm
Just another way the government is turning us into a socialistic company, they own a huge part of the banks, and here is the first of owning major manufacturing in the US. Next will be GM, luckily for now they can’t get their hands on Ford, which I bet just burns them.
Posted by: Bruce | April 30, 2009, 1:42 pm 1:42 pm
Will all Chrysler jobs count as saved or created jobs?
If so, this ups the administration’s numbers considerably…
Posted by: mad | April 30, 2009, 1:44 pm 1:44 pm
i think it’s time for our country to finally do away with democracy/republic. our form of goverment has outlived its usefulness. we need a new form of goverment. Obama has the right idea. We need a ruler like a benevolet king who rules like Obama. The american people have proven to be too stupid to elect leaders. we need authority like obama to tell us what to do when to do and how to do it and what to think.
Posted by: karl | April 30, 2009, 1:46 pm 1:46 pm
..Sometimes you need to look back, (history) Obama as in the “New Chrysler” had already been tried with Mercedes-Benz, MB and Dr.”Z” couldn’t get rid of Chrysler soon enough..Chrysler would have to do away with just about every vehicle they produce, with exception of the current Dodge Ram (gas guzzler) and the 300….Their products are just poor quality…Nobody is buying them. The days of buying a new car every year are long gone…People need quality..
Posted by: Parallax View | April 30, 2009, 1:48 pm 1:48 pm
Why are people crying out against Obama for bailing out the car companies? Bush was the one who set this all in place. I don’t agree with parts of the bailout but I think overall it is a good thing. If the government let them fail we would be in a much bigger recession (more likely depression) than we are now. If people are going to blame anyone for the bailouts and recession, blame Bush. How much money was needlessly spent on the Iraq war? It is an unnecessary war that Bush spent trillions of dollars on. The war was built on lies. WMDs? None. The primary target was Osama Bin Laden and then the Bush administration tried to link Osama to Saddam (which was another lie). Then they forgot about Osama and went after Saddam while Osama was the mastermind behind the 9/11 attacks. 9/11 was an opening for the Bush administration to go after Saddam to finish what his father started. People need to stop crying against the bailouts. Cry against all of the wasted money put toward the war and all of the lives needlessly lost in the war.
At least Obama is trying to fix the economy. I think he is doing a great job so far but it’s going to take a long time to fix the Bush administration’s mistakes.
Posted by: Ron | April 30, 2009, 1:54 pm 1:54 pm
Not very surprising – this is EXACTLY the situation bankruptcy court was invented for. Hopefully the administrations efforts at least allow for a smooth and expedited passage through the process.
Posted by: jhw539 | April 30, 2009, 1:55 pm 1:55 pm
Posted by: Ron | Apr 30, 2009 1:54:39 PM
Hook, line, and sinker…
Posted by: tjp612 | April 30, 2009, 2:00 pm 2:00 pm
Another thing is that American auto makers NEED to make their cars smaller and more fuel efficient. The cost of gas is going up and it will keep doing so because we rely on it. Also, the world’s oil supply is very limited. Once we use it up, it’s gone. And at the current rate of consumption, it will be gone in less than 50 years. That’s within a lot of people’s lifetimes. The American public need to stop being so stupid and wake up to these facts. Stop driving your huge SUVs/cars unnecessarily. The environment and your pocketbook will thank you.
Posted by: Ron | April 30, 2009, 2:01 pm 2:01 pm
This is why the economy wont pick-up again. the American public is not backing the country up. But dont get me wrong, Im not blaming the public. The American Auto makers have failed us, making these HUGE SUV’s, but that was what we wanted. If the Auto-makers want our trust back suprise us with QUALITY not crappy plastics and a $20,000 decline in value as soon as the 1 mile registers on the odometer. But if we REALLY want to see our economy rise to its former glory we have to back each other up. Many people complain about how bad the US auto industry is but sit here and buy honda’s, toyota’s and kia’s and expect GM, CHRYSLER, and FORD to be in outstanding financial shape. Back our country up and you’lle see how our economy will rise again just give it some time. Just look at the new BUICK lacrosse and all the other new cars that are coming out. The ford fusion, mercury milan the US Auto- makers are making huge improvements. Again im not saying buy crappy cars but just wait and see what they dish out first if by then we really dont see a change then there is definately something wrong.
Posted by: omar | April 30, 2009, 2:03 pm 2:03 pm
“A new Rasmussen Reports national telephone survey found that 41% would vote for their district’s Republican candidate while 38% would choose the Democrat. Thirty-one percent (31%) of conservative Democrats said they would vote for their district’s Republican candidate.
“Overall, the GOP gained two points this week, while the Democrats lost a point in support. Still, it’s important to note that the GOP’s improved position comes primarily from falling Democratic support. Democrats are currently at their lowest level of support in the past year while Republicans are at the high water mark.
“Over the past year, Democratic support has ranged from a low of 38% to a high of 50%. In that same time period, Republicans have been preferred by 34% to 41% of voters nationwide.”
Posted by: Fascist Hyena | April 30, 2009, 2:04 pm 2:04 pm
Hook, line, and sinker…
Posted by: tjp612 | Apr 30, 2009 2:00:58 PM
What is that supposed to mean???
Posted by: Ron | April 30, 2009, 2:04 pm 2:04 pm
I am laughing my head off. Ronnie is turning in his grave. This punk is killing the company that RWR had saved. Furthermore, BHO sweetens his thoughts by saying that declaring bankrupcy is the best avenue for Chrysler. Yeah, Mr. President, it is like saying Russian roulette is a fun game to play. Many times you may get away with it. Some of the times, you will buy the bullet. Is this the signs of the things to come?
Posted by: fraggenboots | April 30, 2009, 2:05 pm 2:05 pm
Mr. President,
When will you start applying for General Secretary of the U.N.? I suppose that is the next step for you.
Posted by: fraggenboots | April 30, 2009, 2:07 pm 2:07 pm
Not one single word about how they’re going to start making cars that people want to buy, instead of cars that they don’t. But I’m sure they’ll get some pointers from the folks at Fiat, a.k.a. “Fix It Again, Tony.”
Posted by: Fascist Hyena | April 30, 2009, 2:08 pm 2:08 pm
Bush is history.He can be blamed for alot of things, but continuing to bail out the auto companies is NOT one of them.
The President keeps offering ‘deal sweetners’ (i.e., bailouts) in order to prolong the inevitable.
Why? No President wants to have auto workers out on the street, and he is no exception. But it isn’t HIS money.
In the past 30 days, the President has-
*told the public that ‘stocks right now are a good deal’
*told the public that ‘it is a good time to re-finance your home’
*told the public ‘I will guarantee your GM car’
So, not only is he President, he is ‘stock analyst, mortgage analyst and auto CEO in chief…doesn’t that all seem ‘above his pay grade’?
Can the President tell us which specific bank stocks to buy, since he knows (in secret) which ones are cratering? Unbelievable.
Yet, he wants you to believe he ‘inherited’ all of this.(as if, he was born into it, and not elected to run on his own free will)
Posted by: J House | April 30, 2009, 2:11 pm 2:11 pm
J House
So do you think the govt should just let the auto makers fail, lose thousands of jobs and crumble the economy even more? The Bush administration are the ones who have set the wheels in motion on the bailouts and Obama is trying to fix what the Bush administration screwed up.
Posted by: Ron | April 30, 2009, 2:18 pm 2:18 pm
I have a very simple rule: I will buy no car with which the United Auto Workers union is associated in any way. That rule has stood me in very good stead these past thirty years.
Posted by: Fascist Hyena | April 30, 2009, 2:18 pm 2:18 pm
Actually, this deal is not remotely what the bankruptcy laws are supposed to do.
“The problem was that a group of small bondholders rejected the deal that car czar Steven Rattner and his deputy (and it seems the real dealmaker) Ron Bloom offered.
“The bondholders made a good point. They are secured creditors, and in our bankruptcy law secured creditors get paid off in full before unsecured creditors get anything. That’s a sound legal principle: why would secured creditors lend anyone anything unless they can get their security back if the loan isn’t paid off? In this case, the small bondholders were willing to settle for only 60% of what they were owed. But, they complain, the government wouldn’t negotiate directly with them, but only through JPMorganChase, which (unwillingly) took TARP money on October 13 and thus is under pressure to do what the government wants.
“Translation into politispeak: The government squeezed the small bondholders too hard in order to protect the United Auto Workers, which of course has over the years been a bounteous source of money (and manpower) for the Democratic party. The government can muscle the big banks, but it can’t (at least not yet) muscle creditors whom it hasn’t forced to take its money.”
And neither it nor the UAW knows how to make cars that people want to buy.
Posted by: Fascist Hyena | April 30, 2009, 2:23 pm 2:23 pm
Q: “So do you think the govt should just let the auto makers fail, lose thousands of jobs and crumble the economy even more?”
A: Yes. Because in the long term this will hurt the economy even more. Bush was wrong to bail them out a little bit; Obama is far more wrong to bail them out a lot. They will ultimately fail because their products are no good and the UAW has priced them out of the market, which is how they got here in the first place.
Posted by: Fascist Hyena | April 30, 2009, 2:27 pm 2:27 pm
Re the video attached, ABC and the rest of the WH press should stop enabling the President and show a wider shot of him speaking, so we know he is reading a script and not talking to the public directly.
He is not a TV anchorman and the public should be shown the props he uses to enable his speaking manner.
The tight shot is dishonest and we are forced to go along with make-believe.
Posted by: J House | April 30, 2009, 2:29 pm 2:29 pm
Yes, Ron, they should be allowed to fail…as should finance, banking and insurance companies that ran themselves into the ground.
Tell me why AIG’s own founder was AGAINST the AIG bailout?
Ask yourself one question- “If the US economy is not too big to fail, then why is any company wihtin the US too big to fail?”
The fact is, they aren’t. You have been sold this (by BOTH admins and parties) in order to please their masters whose trough they feed from.
Wake Up.
Ron, who will save the kid laid off at McD’s? Or the girl at the software co. down the st.?
Why is the govt picking and choosing which businesses should survive and fail? It is WRONG.
Especially those who ran themselves (with their unions) into the ground for yrs and now say ‘we’re too big to fail”
Posted by: J House | April 30, 2009, 2:35 pm 2:35 pm
hey guys, this is capitalism. u make a good product, u make $$$. U make a bad product, u die. make a hot product and everyone tries to copy you. in the copying of your product, the price of the product goes down. what’s not to understand? now, make a bad product and then to get subsidized to continue making that bad product is a fool’s game. the problem with gm was the retirement and benefit packages that the uaw demanded and won. i guess the last one out turns off the light.
Posted by: fraggenboots | April 30, 2009, 2:35 pm 2:35 pm
To “Ron”,
I think what he means by “hook, line, & sinker” is that Barack, once again, believes that the Americans that elected him President are going to fall for his double-talk “hook, line, & sinker”. Happily, I am one Democrat that is not among the mindless “followers” of this phony.
Posted by: PhillyPaul | April 30, 2009, 2:36 pm 2:36 pm
barry said yous gots to have unions if you want to do nothing and get paid. only in american. now, the union gots them a car company with prompter boy barry. wonder if they going to keep getting paid doing nothing? unions are for losers only
Posted by: johnny | April 30, 2009, 2:43 pm 2:43 pm
1986, all over again.
Posted by: Radical conservative | April 30, 2009, 2:46 pm 2:46 pm
J House:”The tight shot is dishonest and we are forced to go along with make-believe.”
Most people don’t care if the President is an ace at memorizing speeches or not. Obama does more than enough unscripted, un-teleprompted speaking. All the questions at news conferences which he answers at length – almost an hour of speaking last night – are unscreened and un-prompted. No one with the vaguest grasp of reality can accuse him of shirking the media like past presidents! Pretending to be a Republican harping about the teleprompter is just a way that far left partisans are trying to make Republicans look petty, inept, and out of touch with the real issues on these boards.
Posted by: jhw539 | April 30, 2009, 2:47 pm 2:47 pm
To put it into perspective, Enron was once one of the largest companies (market cap) on earth.
Should it have been saved? Was it ‘too big’ to fail?
Of course not.
And, what do you think the press would have said if Bush would have intervened to save it?
If there were no unions, this President would have surely stepped aside.
Why doesn’t this President just limit the size of companies from hereon so that they never get ‘too big too fail’?
Problem solved, right?
Posted by: J House | April 30, 2009, 2:47 pm 2:47 pm
OK AMERICA! If we all showed that we cared about our country we would stop buying foreign cars and start buying OUR cars. American cars are not as bad as US auto-bashers have been stating. Has anyone mentioned; that Honda’s are the world’s most boring automobile, Nissan and Toyota’s quality has slipped in recent years, KIA and HYUNDAI… give me a break. OK, nothing bad to say about AUDI and BMW. I enjoy my driving Chrysler 300, so what if the drivers side seatbelt is always getting stuck in the door for some reason. America, don’t sweat the small stuff, our economy is more important.
Posted by: Greg | April 30, 2009, 2:52 pm 2:52 pm
re: rev right
barry is our punishment for not thanking bush for keeping us safe.
I guess that’s true if you don’t count Sept 11th,
if I remember correctly , we were attacked while Bush was president……..
Posted by: Non-Revisionist 33 | April 30, 2009, 2:53 pm 2:53 pm
jw,
I won’t disagree that the President can’t speak on his own or that the former president wasn’t as open with news conferences.I know he is an intelligent, articulate guy…Joe said so himself.
I asked that the news be honest and show the President as he is, not as he wants them to show him or how they want to ‘present him’ to the public, like we’re some banana republic.
If you believe his use of the teleprompter isn’t excessive, you must be a pre-teen.
There isn’t a single politician living or dead that has used it like this President…if you have evidence to the contrary, give it up.
Why you are objecting to honesty in the press is beyond me, though.
Posted by: J House | April 30, 2009, 2:55 pm 2:55 pm
Maybe one of you right-wing geniuses can explain how Obama can use a teleprompter when he does not know what the questions are going to be?
Posted by: William J. LePetomane | April 30, 2009, 2:55 pm 2:55 pm
@ Posted by: PhillyPaul | Apr 30, 2009 2:36:12 PM
You nailed it.
Posted by: tjp612 | April 30, 2009, 2:55 pm 2:55 pm
House,
However, Enron was specialized accounting, etc., etc. What was there to save? I don’t think that a company that makes money swapping futures as a energy company should exist. They all needed bar time. GM is another matter. Greedy unions, poor product planning, unusual circumstances (high gas prices when they were cranking SUV’s and trucks)… But, again, capitalism should weed out the weak … big or small, so the stronger companies and the newer companies can thrive.
Posted by: fraggenboots | April 30, 2009, 2:56 pm 2:56 pm
fraggenboots
re: U make a bad product, u die.
exactly,…that’s why Republicans got their collective butts kicked out of office
Posted by: Non-Revisionist 33 | April 30, 2009, 2:57 pm 2:57 pm
Government
Manufactured
Crap
GMC your next!
Posted by: anti-obama/pro-american | April 30, 2009, 2:59 pm 2:59 pm
j house: EVERY president since Ike has used a teleprompter. What is it with you Limbaugh-Lovers and your little “teleprompter tizzies?” So he uses one more than others have for prepared remarks. So what? Others have used typed notes. Still others used a mix of notes and teleprompter. Obama is arguably our most tech-savvy president, so he uses a teleprompter for PREPARED speeches. Quit swilling the Limbaugh-Loving, Hannity-Handjob kool aid. There are more important issues than teleprompters, for God’s sake. That said, it is amusing when one of you rednecks pitches a little telepromter fit.
Posted by: William J. LePetomane | April 30, 2009, 2:59 pm 2:59 pm
fraggenboots
you must have forgotten the Enron energy ‘traders’ manipulating prices so they could crush California and everyone else…..and bankrupt it… good americans all.
republican capitalism at work
Posted by: repo man | April 30, 2009, 3:02 pm 3:02 pm
Wow. Didn’t mean to get under your skin, William. I think the issue reappeared only because Obama so openly stumbled the other day when it rolled too slowly, he couldn’t improvise, and had to wait for it to catch up. That’s all.
And I wouldn’t assume he doesn’t know what the questions are. For all we know, he WROTE the questions. Maybe that’s why they were softballs. But, who knows…
Posted by: jo | April 30, 2009, 3:05 pm 3:05 pm
William J. LePetomane
you are quite accurate sir…..
notice how all republican/conservatives diatribes have nothing to do with solutions for America, their only suggestion is to let things fail, dems are bad, and to cry socialism…not to mention rant about birth certificates & teleprompters….
Posted by: Non-Revisionist 33 | April 30, 2009, 3:06 pm 3:06 pm
Having worked as an automotive engineer in Detroit for about 10 years, I would say bankruptcy is exactly what Chrysler needs, particularly if it results in extensive management changes.
The auto companies are experiencing major problems because of poor management, declining market share due to increased competition and huge legacy costs. Bankruptcy will at least allow some of this to be addressed.
Don’t be fooled by the “no jobs will be lost” non-sense. The US companies have too much capacity given their share of the automotive market.
Posted by: Josh | April 30, 2009, 3:06 pm 3:06 pm
They tried to say Obama did not know where AF One was the other day when it flew over NY. Ha! An obvious lie. Next thing you know, he’ll be saying that he does not know where his limosine is when it it out getting an oil change. Impeach the SOB now!
Posted by: PrisonForAllRightWingWhackJobs | April 30, 2009, 3:06 pm 3:06 pm
“OK AMERICA! If we all showed that we cared about our country we would stop buying foreign cars and start buying OUR cars.”
I care about our country, but I am not going to subsidize an organization (the UAW) with Mafia-like leadership that chases political favors with union dues for political purposes.
My next purchase will be a non-UAW car produced in the U.S.
(although I may give consideration to Ford for their unwillingness to beg for bailout money…the problem is I expect at some point Ford will need to take a trip to DC in as the U.S. government kicks in incentives to GM & Chrysler – including fleet purchases, tax incentives, lower interest rate financing, etc. – that puts Ford at a significant disadvantage).
Posted by: tjp612 | April 30, 2009, 3:09 pm 3:09 pm
jo: LOLOL. So now the latest conspiracy is that Obama has suppressed the press to the point that they must ask only questions that HE has written? Are you serious? If you are, you are very naive.
Posted by: William J. LePetomane | April 30, 2009, 3:09 pm 3:09 pm
jo
easy solution, lets have an all American contest: discussion of issues
Obama vrs. Bush (no time limit match)
no papers, or teleprompters or aids….
america gets to make bets on the winner..
I know that my money is bettin’ on Obama
Posted by: Dewde | April 30, 2009, 3:11 pm 3:11 pm
I don’t like Limbaugh, don’t watch Fox, didn’t vote for Bush and I’m not a Republican…now what is your question about my plea for more honesty in the press?
You seem caught up in bi-partisan party politics…
You are allowed to freely think in the U.S., last time I checked.
I highly recommend it.
I am currently in Malaysia, where anymore than 3 people peacefully assembling on a street corner can be thrown in jail.
Can’t wait to get back to the good ol USA where the bill of rights still means something.
Posted by: J House | April 30, 2009, 3:12 pm 3:12 pm
Anyone care to point out where in the U.S Constitution the executive branch was given the authority to interfere with bankruptcy laws by loaning money to specific companies?
The U.S. Constitution states that Congress is responsible for creating uniform bankruptcy laws. The President is acting in violation of the U.S. Constitution by not applying the laws uniformly!
Posted by: Guest | April 30, 2009, 3:14 pm 3:14 pm
I bought a Dodge when they were being helped by Mitsubishi motors.. back in the day.. this was their way to get out of trouble.. it was a lemon too.. but I loved it..when I bought it for $9K.. do yourself a favor, buy a red state car.
Posted by: DontGet818OnMeNow | April 30, 2009, 3:14 pm 3:14 pm
I buy GM cars and have for decades. Others who buy imports point to the fact that many of them are made in the US. While true, my question is where do the profits from the sale of imports eventually go? Do they stay in the US or do they go overseas? Cars are one of the few areas anymore where you can buy something not only made in the US, but from a US owned company. And I do not buy the crap that the Korean and Japanese cars are so much better made.
Posted by: William J. LePetomane | April 30, 2009, 3:14 pm 3:14 pm
William J. LePetomane
Jo forgets that Republicans close off and restrict their gatherings for the ‘faithful’…… everyone remembers that from the 2008 Repub campaign..
Repubs also like to illegally impersonate law enforcement to deny non repubs public access and also to dent them their 1st amendment rights
Posted by: Dewde | April 30, 2009, 3:15 pm 3:15 pm
guest
re: where in the U.S Constitution the executive branch was given the authority to interfere
c’mon now……. since when does that even matter … old ‘W’ just issued signing statements and did whatever the hell he liked…..
Posted by: ratso | April 30, 2009, 3:19 pm 3:19 pm
As I mentioned, I work here in Malaysia part time. The press is controlled here. They have a ‘cult of personality’ following of the Prime Minister…every day, limitless photos and articles of him in the press, doing this, doing that, like he is the father of the country-knows when you should buy stock, re-finance your house, buy a new made-in-Malaysia car.
I used to laugh about it for years, until this President was elected.
It is surrreal.
Yet, our press is supposed to be ‘free’.
Posted by: J House | April 30, 2009, 3:22 pm 3:22 pm
Obama suggested we buy cars from GM, Ford and Crysler???? Why that unpatriotic SOB! He should be telling us to buy Hondas, Toyotas, Nissans and Hyundais! How dare he suggest such a thing. Impeach the SOB now!
Posted by: WaterboardAllRightWingWhackJobs | April 30, 2009, 3:24 pm 3:24 pm
jhouse: if you think our media is biased in favor of Obama, apparently there in Maylasia you have not seen Limbaugh, Hannity, Coulter, O’Reilly, Matalan, Drudge, Buchanan, Novak, Carlson.
Posted by: William J. LePetomane | April 30, 2009, 3:27 pm 3:27 pm
I buy GM cars and have for decades. Others who buy imports point to the fact that many of them are made in the US. While true, my question is where do the profits from the sale of imports eventually go? Do they stay in the US or do they go overseas? Cars are one of the few areas anymore where you can buy something not only made in the US, but from a US owned company. And I do not buy the crap that the Korean and Japanese cars are so much better made.
Posted by: William J. LePetomane | Apr 30, 2009 3:14:51 PM
—————————————-
LOL! LOL! LOL! You need to see where the majority of the parts are made that are put on American cars! Mexico! LOL….At least the Americans that are working in the Japanese auto plants here in the U.S. have jobs! NO UAW!
Posted by: anti-obama/pro-american | April 30, 2009, 3:33 pm 3:33 pm
Repo,
Funny thing, Enron is in Houston, which is a DEMOCRATIC city last time they voted. Greed knows no color nor party.
Posted by: fraggenboots | April 30, 2009, 3:33 pm 3:33 pm
All you pro-American car people I would like to see what brand of car your representative is driving!!!
Posted by: anti-obama/pro-american | April 30, 2009, 3:34 pm 3:34 pm
“I buy GM cars and have for decades. Others who buy imports point to the fact that many of them are made in the US. While true, my question is where do the profits from the sale of imports eventually go? Do they stay in the US or do they go overseas?”
Does it really matter? Do you think the GM worker in Moraine, OH who has lost his/her job care where profits are going? Do you think the BMW worker in Spartanburg, SC care where profits are going?
“Cars are one of the few areas anymore where you can buy something not only made in the US, but from a US owned company.”
Buyer beware: Just because you are buying a vehicle from an American car company does not necessarily mean vehicle was produced in the U.S. GM and Chrysler have at least 3 assembly plants in Mexico, Ford has at least 2.
“And I do not buy the crap that the Korean and Japanese cars are so much better made.”
Agreed – workmanship is generally competitive. However, in order to cover higher cost structure, U.S. automotive companies oftentimes compromise in components and details (e.g., interiors, electronics, etc.) which can lead to inferior (or the perception thereof) vehicles.
Posted by: tjp612 | April 30, 2009, 3:36 pm 3:36 pm
anti-Obama: what kind of car do YOU drive?
Posted by: William J. LePetomane | April 30, 2009, 3:41 pm 3:41 pm
Parts are parts… the red state car companies want the big 3 to stay intact so that the subsuppliers don’t go into receivership.. let’s tell the Chinese to buy Buicks and the Germans to buy Opels and the UK to buy Fords.. it’s a worldwide market.. I would by any brand .. depending on what I like and how much it costs.. and number one for many (not me) the finance/lease/warrantee/maintenance arrangments.
Posted by: DontGet818OnMeNow | April 30, 2009, 3:46 pm 3:46 pm
Governor LePetomane, when you can name the handful of detractors to the Obama regime out of hundreds of thousands of journalists, political pundits and talking heads, that’s frightening. You underscore all the liberals in the media who are biased in favor of Obama.
Posted by: LiliVonShtupp | April 30, 2009, 3:47 pm 3:47 pm
Will LeP,
Every single one of those people you mentioned are political pundits or ‘opinion leaders’, not reporters.
The only people listening to them are their loyalists.
The President has already done his part to marginalize them.
What threat are they to his loyalists (like you)? They aren’t.
It’s just noise.The President has you where he wants you…pointing the finger at them. Those folks you mentioned…they do it too, with their loyalists.
Now, where does that get any of us?
And, what does it have to do with a WH press corps that shills for a President, Republican or Democrat?
Freely think for yourself.It is ok to be critical of our President, or, our former one…especially when they deserve it.
If it makes you feel good to label me and then dismiss my argument, by all means.
There are some things I like about this President, many I don’t like.
And yes, I would like to see his mom’s passport…should it be a state secret?
Or, are you all for covering it up too?
It should really be a slam dunk for the President if it shows she was in Hawaii on August 4, 1961, right?
Posted by: J House | April 30, 2009, 3:48 pm 3:48 pm
antiobama: ROTFLMAO. The point is that the companies are AMERICAN OWNED. I don’t care where the parts are made or where the car is assembled. Is that clear enough for you to comprehend?
Posted by: William J. LePetomane | April 30, 2009, 3:49 pm 3:49 pm
I drive a black Mustang. You?
Posted by: LiliVonShtupp | April 30, 2009, 3:50 pm 3:50 pm
j house: Interesting. Limbaugh proclaimed himself head of the GOP and every Republican, including chairman Steele, who has gone against him has backpedaled and apologized under a barrage of mail, phone calls and e-mails. Does that sound like a mere pundit to you?
Posted by: William J. LePetomane | April 30, 2009, 3:52 pm 3:52 pm
lily, lily, lily legs: I drive a Pontiac
Posted by: William J. LePetomane | April 30, 2009, 3:53 pm 3:53 pm
fraggenboots
re: Enron is in Houston, which is a DEMOCRATIC city last time they voted
and Houston is in Texas, which according to their Republican Gov. wants to secede from America..
Posted by: Repo | April 30, 2009, 3:55 pm 3:55 pm
lili: your Governor does not give those who are seemingly openly biased in favor of Obama, like Olbermann and Matthews, much credence either.
Posted by: William J. LePetomane | April 30, 2009, 3:56 pm 3:56 pm
It is interesting that it all comes to one’s personal perspective. Many here complain that ABC News is in the tank for Obama. Yet the other night my wife, a fierce Obama supporter, claimed that she no longer wanted to watch ABC News because Charlie Gibson was so anti-Obama! Go figure.
Posted by: William J. LePetomane | April 30, 2009, 3:59 pm 3:59 pm
“antiobama: ROTFLMAO. The point is that the companies are AMERICAN OWNED. I don’t care where the parts are made or where the car is assembled. Is that clear enough for you to comprehend?”
Per my earlier post:
Does it really matter? Do you think the GM worker in Moraine, OH who has lost his/her job care where profits are going? Do you think the BMW worker in Spartanburg, SC care where profits are going?
BTW – GM and Chrysler are definitely American owned…by the U.S. government and the UAW!
Posted by: tjp612 | April 30, 2009, 4:07 pm 4:07 pm
Repo, And Texas is in USA which is currently very Democratic? Your Point?
Posted by: fraggenboots | April 30, 2009, 4:09 pm 4:09 pm
@ William J. LePetomane | Apr 30, 2009 3:49:28 PM
“antiobama: ROTFLMAO. The point is that the companies are AMERICAN OWNED. I don’t care where the parts are made or where the car is assembled. Is that clear enough for you to comprehend?”
Per my prior post:
Does it really matter? Do you think the (unemployed) GM worker in Moraine, OH who has lost his/her job cares where profits are going? Do you think the (employed) BMW worker in Spartanburg, SC cares where profits are going?
BTW – GM and Chrysler are definitely American-owned…Owned by U.S government and UAW!
Posted by: tjp612 | April 30, 2009, 4:10 pm 4:10 pm
I think a more interesting.. what you drive question:
To UAW Members..
do you drive a car made by UAW workers
Posted by: DontGet818OnMeNow | April 30, 2009, 4:11 pm 4:11 pm
Governor, you have a wife? You naughty, nought cad. And, she seems to be hypersensitive about our dear President. You may want to have her tested. Oh, too bad about the Pontiac, unless it’s a Trans Am. Vroom! Vroom! Resale just dropped a bit .
Posted by: LiliVonShtupp | April 30, 2009, 4:16 pm 4:16 pm
BTW – GM and Chrysler are definitely American owned…by the U.S. government and the UAW!
Posted by: tjp612 | Apr 30, 2009 4:07:01 PM
—————————————
Parts made in China and Mexico! LOL! Where do you think those profits are going!
Posted by: anti-obama/pro-american | April 30, 2009, 4:31 pm 4:31 pm
anti-Obama: what kind of car do YOU drive?
Posted by: William J. LePetomane | Apr 30, 2009 3:41:39 PM
—————————————-
Honda Accord
Posted by: anti-obama/pro-american | April 30, 2009, 4:32 pm 4:32 pm
Hey GOV…
Rush never said he was the head of the party, that title was given to him by the Obama administration.
Posted by: Hedley Lamarr | April 30, 2009, 4:33 pm 4:33 pm
“Parts made in China and Mexico! LOL! Where do you think those profits are going!”
Again:
Does it really matter? Do you think the (unemployed) GM worker in Moraine, OH who has lost his/her job cares where profits are going? Do you think the (employed) BMW worker in Spartanburg, SC cares where profits are going?
Also – Whether you buy “American” or foreign OEM, the parts for these vehicles are most likely manufactured by the usual suspects: U.S., Mexico, and China. And, it is not unusual for foreign vehicles/models to have a higher U.S.-content than vehicles/models made by American car makers.
Posted by: tjp612 | April 30, 2009, 4:42 pm 4:42 pm
Again:
Does it really matter? Do you think the (unemployed) GM worker in Moraine, OH who has lost his/her job cares where profits are going? Do you think the (employed) BMW worker in Spartanburg, SC cares where profits are going?
Also – Whether you buy “American” or foreign OEM, the parts for these vehicles are most likely manufactured by the usual suspects: U.S., Mexico, and China. And, it is not unusual for foreign vehicles/models to have a higher U.S.-content than vehicles/models made by American car makers.
Posted by: tjp612 | Apr 30, 2009 4:42:17 PM
—————————————-
Ok…so it’s ok for them to keep taking from the American taxpayer and still file bankruptcy! It is fair they get the majority of their wages when laid off! Give me break! They have done it to themselves and their union! I don’t care! You make your bed sleep in it. You are in the minority on this one!
Posted by: anti-obama/pro-american | April 30, 2009, 5:02 pm 5:02 pm
A correction to Mr. Obama’s false statements about Churchill and torture:
“Between July 1940 and September 1948, however, these three magnificent houses were home to one of the country’s most secret military establishments: the London office of the Combined Services Detailed Interrogation Centre, known colloquially as the London Cage.
“The London Cage was run by MI19, the section of the War Office responsible for gleaning information from enemy prisoners of war, and few outside this organisation knew exactly what went on beyond the single barbed-wire fence that separated the three houses from the busy streets and grand parks of west London.
“Years later Tony Whitehead, a consultant psychiatrist in Brighton, recounted in his memoirs how, as a young aircraftsman delivering a belligerent SS sergeant to the Cage, he was shocked to see a German naval officer in full dress uniform on his hands and knees, cleaning the entrance hall floor. An enormous Guardsman stood with one foot on the prisoner’s back, casually enjoying a smoke. When Whitehead collected his prisoner three days later, the man was completely subdued, rarely looked up, and addressed him as sir. “‘ do not know what had happened to him at the London Cage,’ Dr Whitehead wrote.
“By examining thousands of documents stored at the National Archives, formerly the Public Record Office, as well as the archives of the International Committee of the Red Cross in Geneva, the Guardian has established what happened to this prisoner, and many others like him.
“The London Cage was used partly as a torture centre, inside which large numbers of German officers and soldiers were subjected to systematic ill-treatment. In total 3,573 men passed through the Cage, and more than 1,000 were persuaded to give statements about war crimes. The brutality did not end with the war, moreover: a number of German civilians joined the servicemen who were interrogated there up to 1948.”
If Mr. Obama wants to lecture us on his superior morality, he at least owes it to us to get his facts straight.
Posted by: Fascist Hyena | April 30, 2009, 5:07 pm 5:07 pm
I drive a Mercedes. I’m very pleased with it.
Posted by: Fascist Hyena | April 30, 2009, 5:08 pm 5:08 pm
My wife adores her BMW.
Posted by: Fascist Hyena | April 30, 2009, 5:08 pm 5:08 pm
“Ok…so it’s ok for them to keep taking from the American taxpayer and still file bankruptcy! It is fair they get the majority of their wages when laid off! Give me break! They have done it to themselves and their union! I don’t care! You make your bed sleep in it. You are in the minority on this one!”
===========================
Whoa, whoa, whoa…you and I are on the same page on this. My primary point was don’t get suckered into “buying American” for “America’s sake”. The UAW, the U.S. government (in particular those Dems in Congress supported by the tree-hugging fringe), and management are all responsible for the demise of the U.S. auto industry.
I am of the mind that buying a BMW, Honda, Nissan, VW, Kia, Mercedes, or Toyota made in the USA is just as American as buying a UAW-made car. These (non-UAW) workers pay taxes, raise families, contribute to their communinities – just like other workers across the country. They should not be discriminated against because GM and Chrysler don’t have their act together.
Posted by: tjp612 | April 30, 2009, 5:17 pm 5:17 pm
Republicans are so jealous of the well-spoken, ultra-intelligent, great communicator, Obama! Obama is clearly on track to be the best president in the history of the USA. He and his wife understand the presidency and its symbolism well.
Obama has gone the extra mile to help secure our automotive manufacturing base. Republicans would be happy to watch the entire economy collapse; and, then try and fix it with tax cuts. What is there to tax if no one has a job or income?
Thank goodness the republican party has drifted to the marginalized FAR RIGHT. Nothing but, very old, very white people who don’t care much for the asians, latinos, blacks, or any other non-white race in America.
Republicans think tax cuts and overturning Roe V Wade (which aint broke and doesn’t need fixing) will cure everything! Republicans are dead wrong, evidenced by the last 8 years of complete failure under GW! Go Obama, yes we can!
Posted by: Common Sense | April 30, 2009, 6:45 pm 6:45 pm
i drive buick i buy nothing at chinamart(walmart)i buy union as often as possible…i am a true american i stand up for the working class.. i hate the filthy rich ceo,s and stock holders rapeing us working people. buy american dont buy anything with china on tag.
Posted by: real T here | April 30, 2009, 7:12 pm 7:12 pm
Why is Obama announcing the bankruptcy of Chrysler? Why isn’t the CEO doing that?
Does the US government own Chrysler?
Posted by: CW | April 30, 2009, 7:34 pm 7:34 pm
in 20 years they will be back in this same situation. just watch and see.
Posted by: Josh from South Carolina | April 30, 2009, 8:44 pm 8:44 pm
These cars are not “American made” they are ASSEMBLED in the US. All the parts are made in foreign countries.
Posted by: CW | April 30, 2009, 9:07 pm 9:07 pm
Since Barack told us that “government” was the only entity big enough to solve this problem, does this mean “government” failed?
Posted by: KJo | April 30, 2009, 9:15 pm 9:15 pm
Buy American? Why? Just for support? My last GM vehicle bought new from dealership for $30K cost me $10k in repairs not covered by warranty, caused by various failures in which I had no role. It was a not so funny joke. Dont buy American, buy quality, whatever it may be.
Posted by: Mike | April 30, 2009, 9:40 pm 9:40 pm
Wow! ‘Commonsense’ – you said everything I wanted to say so eloquently that I cannot do better than simply re-post your posting:
……………………………..
Republicans are so jealous of the well-spoken, ultra-intelligent, great communicator, Obama! Obama is clearly on track to be the best president in the history of the USA. He and his wife understand the presidency and its symbolism well.
Obama has gone the extra mile to help secure our automotive manufacturing base. Republicans would be happy to watch the entire economy collapse; and, then try and fix it with tax cuts. What is there to tax if no one has a job or income?
Thank goodness the republican party has drifted to the marginalized FAR RIGHT. Nothing but, very old, very white people who don’t care much for the asians, latinos, blacks, or any other non-white race in America.
Republicans think tax cuts and overturning Roe V Wade (which aint broke and doesn’t need fixing) will cure everything! Republicans are dead wrong, evidenced by the last 8 years of complete failure under GW! Go Obama, yes we can!
Posted by: Joe Bloggs | April 30, 2009, 10:14 pm 10:14 pm
Fascist Hyena
as usual ,
you miss the forest for the trees
Posted by: anon | April 30, 2009, 11:45 pm 11:45 pm
A group of about 20 organizations of secured creditors are going to challenge Obama’s deal in the bankruptcy court. Under well-established law, secured creditors are to be paid in full before unsecured creditors take anything. (This is one of the reasons secured creditors accept lower interest payments–their investments are “secured.”)
Now we shall see if the rule of law will prevail.
I’d like to solicit a show of hands here: How many actually believe that an auto company run by the governments of the US and Canada, the UAW and Fiat will actually succeed in the marketplace. For those who answer “I do,” please tell us briefly about the reasons for your optimism.
Posted by: Fascist Hyena | May 1, 2009, 9:48 am 9:48 am
J House
I too thought at first that they all should be allowed to fail. Unfortunately, the economy doesn’t work that way. In an ideal world, yes, I would say let them fail but this is not an ideal world. This would crumble the US economy and have worldwide effect. If we let the automakers fail, how many jobs would be lost? What I do agree with is that US auto workers get paid way too much. That is why import car makers are so successful while US automakers are in their current predicament. Import automakers pay their employees more reasonable wages. The starting salary for a line worker at one of the US automakers was $28/hour…that’s STARTING SALARY!!! They have announced that they are cutting the starting wage in half which is a good start at fixing the problem.
While I don’t completely agree with the bailouts I think it is a step in the right direction. It’s forcing the companies to restructure and become more efficient which was desperately needed.
Posted by: Ron | May 1, 2009, 12:06 pm 12:06 pm
I guess the ultimate question now:
Is the U.S. Government deemed ‘Too Big to Fail’??
Posted by: DontGet818OnMeNow | May 1, 2009, 3:38 pm 3:38 pm
I’ve bought Dodge/Chrysler products due to the fact that my Uncle’s and Brother work for the company due to the added discounts. Now I have a Lifetime warranty on my Dodge that Obama says that I’ll have to get repaired by GMAC who themselves are next in line for this Bailout. Since the gov’t is taking over the auto manufacturing business, why don’t they put some of the people on WELFARE to work to collect their $$ seems like a good trade off. All I hear from the Union workers is how unfair it would be to take such an enormous pay cut/lifestyle change. Move the Company South and we’ll provide them with lower pay and benefits with a higher quality product less bellyaching over what the Union is/isn’t doing for me.Nullify there contract, let the UAW retirement have their little piece, bring in non-union, productive workers (some from the other government programs) to help stimulate this process.Chrysler/Dodge may fail but JEEP will always prosper!!!
Posted by: tampapackerfan | May 1, 2009, 6:07 pm 6:07 pm
Can We BANKRUPT THE COUNTRY? YES WE CAN!
ANON, NO leader anywhere that implemented socialistic style policies EVER SUCCEED. OBAMA’s policies will eventually destroy this country…My only wish is that I only those who supported him pays for it. and THERE IS NO SUCH THING AS TOO BIG TOO FAIL.
Posted by: Marie | May 5, 2009, 10:33 am 10:33 am
I WILL NEVER buy GM or Chrysler cars thanks to the government. Both GM and Chrysler are moochers and the governemnt is the LOOTER!
Posted by: Marie | May 5, 2009, 10:37 am 10:37 am
Let me tell you, do not buy a Dodge. I bought a 2003 Dodge Ram 2500 Diesel back in 2003. I’ve had nothing but trouble with the truck and with the dealers! I put the truck in the shop this evening AGAIN! And I’m sure I’ll be doing battle over the bill tomorrow. I only bought this truck because of the Cummins engine. But I sure wish I’d bought a Ford instead!
Posted by: Kim | May 19, 2009, 9:24 pm 9:24 pm
I’m not surprised Chrysler is going down the drain fast, people are finding out the truth about the company and not buying their vehicles while those who buy American have been for years going over to Ford and GM.
http://www.dontbuydodgechryslervehicles.com and http://www.daimlerchryslervehicleproblems.com
Posted by: Brian | May 20, 2009, 6:20 pm 6:20 pm