Welcome to the APBWeb.
Results 1 to 4 of 4
  1. #1
    Terminator's Avatar
    Terminator is offline BANNED
    Join Date
    12-03-05
    Location
    None of your business
    Posts
    16,064
    Rep Power
    0

    Democrats expected to bail out the automakers to the tune of $75 billion of taxpayers money

    WASHINGTON Leading Democrats expect U.S. automakers will show Congress next month they are worth rescuing and are capable of returning to global pre-eminence. Skeptical Republicans said Sunday that Detroit's Big Three needed to convince taxpayers that they deserve an emergency $25 billion lifeline.
    With the survival of a major manufacturing at stake, a top adviser to President-elect Barack Obama warned the companies that there is little the government can do without a viable plan to retool and restructure.
    Executives from Detroit's Big Three returned home after a pair of disastrous hearings on Capitol Hill last week, under orders from Democratic leaders to provide Congress with a detailed accounting by Dec. 2 of their financial condition and short-term cash needs, as well as a plan for viability over the long term.
    Hearings are expected the week of Dec. 1. Lawmakers could consider legislation the following week if they are satisfied by the companies' responses.
    "My expectation is that we are going to see something, that the auto companies are going to respond in a way that I think will give confidence to the Congress and to the American public that we need to assist these companies," said the House's second-ranking Democrat, Rep. Steny Hoyer of Maryland. Asked in a broadcast interview about passing a bailout in December, Hoyer replied: "I'm hopeful that we will come up with the information that will justify doing so."
    Added House Speaker Nancy Pelosi, D-Calif: "We want to be their partners to go forward. ... and if we're going forward, to be pre-eminent in the world, and we think that that opportunity is there."
    Sen. Charles Schumer, D-N.Y., said Congress cannot provide money without a plan for the future. "There can be. There will be. And then Congress will step up to the plate."
    But the House Republican leader, Rep. John Boehner of Ohio, was less certain the automakers would change enough minds by next month.
    "I'm not sure that they will have a plan by early December, a real plan. And on behalf of the American taxpayers, they're not interested in investing money that it's going to be really thrown away," Boehner said.
    "At the end of the day, it's not about convincing me. It's about convincing the American taxpayer that they're making an investment in a viable corporation," he said.
    The top Republican on the Senate Banking, Housing and Urban Affairs Committee questioned whether $25 billion would be enough. "I don't believe $50 billion will be. I believe it will take several hundred billion, and still, they might not make it," said Sen. Richard Shelby, R-Ala., who favors bankruptcy reorganization if necessary.
    Obama has advocated accelerating a $25 billion loan that Congress had authorized for automakers to retool and manufacture more energy-efficient cars, but Democrats say that would undercut a major environmental effort. He has said the government needs to help the industry but "it can't be a blank check."
    "I think he feels strongly that the signal that was sent by Congress was the right one," Obama adviser David Axelrod said. "We all have a stake in the survival and the prosperity of the auto industry. Millions of jobs depend on that. But in order to do that, they're going to have to retool and rationalize their industry for the future. And if they don't do that, then there's very little that taxpayers can do to help them."
    U.S. automakers are struggling to stay afloat heading into 2009 amid an economic meltdown, a precipitous drop in sales and a tight credit market. General Motors Corp., Ford Motor Co., and Chrysler LLC went through nearly $18 billion in cash reserves during the last quarter, and GM and Chrysler have said they could collapse in weeks.
    Detroit's car makers employ nearly a quarter-million workers, and more than 730,000 other workers produce materials and parts that go into cars. If just one of the automakers declared bankruptcy, some estimates put U.S. job losses next year as high as 2.5 million.
    Axelrod, Schumer and Shelby were on ABC's "This Week," while Hoyer and Boehner appeared on "Fox News Sunday." Pelosi was interview on "Face the Nation" on CBS.

  2. #2
    countybear's Avatar
    countybear is offline BDRT - Baby Daddy Removal Team
    Verified LEO
    Super Moderator
    Join Date
    01-18-07
    Location
    Louisiana
    Posts
    6,512
    Rep Power
    4611627
    The Democrats are saying, "Kiss our asses and we'll give you money... with minor oversight, of course."

    The Republicans are saying, "Uh, huh, well, just kiss our asses."

    Anyone else notice how some senators who enact class warfare against 'big, fat, greedy corporate America', are the first ones to run to their aid and demand a bailout for them?

    ... and these guys (these three big auto execs) flew in expensive private aircraft to the meeting where they would ask for a bailout of their company! This proves that they are hypocritical, doesn't it?

    Here's one of the aircraft they used, (the most expensive one): A Gulfstream.



    That's just ridiculous. You don't see Obama going around flaunting like that, do you?



    Well... ok.

    "The American Republic will endure until the day Congress discovers that it can bribe the public with the public's money."
    - Alexis de Tocqueville, Democracy in America

    Tell me not, Sweet, I am unkind,
    That from the nunnery
    Of thy chaste breast and quiet mind
    To war and arms I fly.
    - Lovelace

    The opinions expressed by this poster are wholly his own, and should never be construed to even remotely be in representation of his employer, its agencies or assigns. In fact, they probably fail to be in alignment with the opinions of any rational human being.

  3. #3
    Odd's Avatar
    Odd
    Odd is offline Cosmonaut Trainer
    Supporting Member Lvl 3
    Join Date
    10-08-08
    Posts
    2,056
    Rep Power
    2508662
    Meanwhile the Chevy Volt is still years away while Tesla has delivered 60 cars. Nope, that's not many, but that's sixty from a company that was nothing but a dream on paper five years ago, and it's a lot more than 0.

    Meanwhile the Prius, which uses much the same electric/ICE model the Volt is adopting, has turned 11 years old.

    Meanwhile Volkswagen announced "Amid a sluggish national economy and angst in the American auto industry, Volkswagen is ramping up construction of its $1 billion assembly plant in Chattanooga." When construction is finished it'll employ 2000 American workers, in 2011, the year the Volt may finally hit a showroom in your area.

    Meanwhile in South Africa, the Joule is being developed and is expected to be out by 2010. 125 mile range not enough? Equip it with a second battery pack for 250. FWD not to your liking? Get the RWD option for AWD. Hey, options are nice! Sure, the 6 passenger rating is optimistic, but it'll tote kids around town all day for pennies. Even if it's far from perfect, what does Detroit have to put up against it?



    Why do I compare everything to the Volt? Detroit knows how to make big four doors. They can make the occasional sports car and they're the world masters of light trucks and SUVs. They are outstanding at building the cars the market wanted, but are they designing ones the market wants today, or tomorrow? How about when gas goes back up? Ford isn't even bothering to look at electric and Chrysler's offerings are less than inspiring. (Hybrid Durango,$5000 more for 3mpg anyone?)

    So before we bail these guys out let's consider not only how that impacts workers and the economy for the next two years and look ahead to the next twenty. Prop them up and the innovative small companies like Tesla are at that much more of a disadvantage. What happens to Carbon Motors if the government bails out their competition while CM suffers unaided? Prop them up and we may well find ourselves even more behind the next time they run out of money. And we may find those innovative local companies like Tesla and Carbon motors have left.

    Maybe we should call this bailout/loan the "Crown Vic preservation act"?

    I'm for the bankruptcy restructuring. It forces them to deal with the unions. It will probably hurt innovation in the short term as they cut expenses, but nothing drives innovation like necessity. If you know someone working for the Big Three who may lose their job in the process, tell them to send a job application to Volkswagen.

  4. #4
    countybear's Avatar
    countybear is offline BDRT - Baby Daddy Removal Team
    Verified LEO
    Super Moderator
    Join Date
    01-18-07
    Location
    Louisiana
    Posts
    6,512
    Rep Power
    4611627
    Capitalism dictates market demands should actually steer manufacturer's quest to meet that standard, not the reverse. When cafe' standards and government intrusion into that market wrests control from a manufacturer's pursuit of market demand, the government has overstepped (once again). Rather than mandating fuel economy and environmental standards by a given deadline, government would be better spent educating the demand and allowing market influences to steer the makers. Then, the automotobile manufacturers themselves have no one else to blame but themselves for failure. Safety technology is understandable, however when a mandate is placed without at minimum, the offer of incentives to engineer given desirable qualities in vehicle offerings, an undue (and artificial) market pressure is created, rather than allowing the natural flow of the free market to advance technologies.

    No one can be blamed for the 'big 3' collapsing to UAW demands (for lifetime free health benefits to blue collar retirees, for example), but the automakers themselves. This is one reason that an estimated $1,500.00 of every vehicle's build cost is spent on health benefit overhead. Again, leaving the market to right itself from the artificially-created 'balloon' economy burst will lead to a major re-alignment by the manufacturers, dynamicaly thrusting them into a position where they will either revolutionize their business plan, or fail, allowing another 'even brighter' idea to emerge. That is capitalism, not government 'nannying'.

    "The American Republic will endure until the day Congress discovers that it can bribe the public with the public's money."
    - Alexis de Tocqueville, Democracy in America

    Tell me not, Sweet, I am unkind,
    That from the nunnery
    Of thy chaste breast and quiet mind
    To war and arms I fly.
    - Lovelace

    The opinions expressed by this poster are wholly his own, and should never be construed to even remotely be in representation of his employer, its agencies or assigns. In fact, they probably fail to be in alignment with the opinions of any rational human being.

 

 

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Tags for this Thread

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •