The collateral damage will be massive but is a bailout just postponing the inevitable? Probably yes. The economy is only going to get worse and we're looking at 2010 before we will see any light at the end of the tunnel. What happens next year when very few are buying cars and even domestic cars? The Chevy Volt is 1 1/2-2 years out.
This is a very difficult situation but I would have to vote no.
The UAW should recommend 20% pay cut for all its workers in exchange for equity in the company.
The reduced costs will make the co.s more competative.
The auto manufactures need to cut their employees, management, factories, pensions, etc... all by 50 % like the rest of us are doing. The problem we have in this country is that the private sector has 3.5 million unemployed & the piublic has zero. The private sector taxes take care of the public sector & until we quit spending billions of $in italy, France, Russia, etc.. we are heading for a downturn well into 2012. Stock market will hit a low of 7,000 within the next year as ther is nothing to get us back on our feet.
Housing not automobiles keeps the economy going. Get rid of half the automakers and we will survive. You do not see the Japaneese, Germanns or Chineese building homes here do you?
Americans build homes with mostly American made products!!!
Let me know when to run for office and I guarantee I can fix the economy in one year and can make drastic changes in two months!!! let the world know we are pulling out and are going to take care of ourselves for a few years!!!!
Does anyone not see what going on? This is a battle of the LEFT wing and the RIGHT wing! the US citizens are not in consideration here. First, Paulson eliminating his TARP plans, eliminates the chance for millions to be able to repair their credit and unfreeze the credit market in the future. The Democratic bailout is sending capital into in return for 40-80% ownership. When it is said and done, the government will own at least 50% of the remaining big businesses that survive. Second, on the other hand, Republicans are attempting to thwart the Democrats idea, but at the expense of their citizens. Not Bailing out the auto industries will cost 100 million jobs! our jobs, not theirs! Third, both wings need to actually join and do something that allows for capitalism to continue, with just a small watchful eye of the government. And for goodness sake, the only way to get the credit markets flowing again, is to help repair peoples jobs and credit that actually need it for survival.
Dino would be a better name for the Volt!! The Chinese are at twice the range half the price, Buffett thinks they are the winner to the tune of $230mil... There are millions of opinions about the "WHY" of the US auto industry, seems it does not matter if they are at the edge of the cliff. I do not want to use my money to help them out.
The US auto industry had over thirty years to design and build clean-running, fuel-efficient vehicles. Instead they chose to continue building gas guzzling V8 pickup trucks and SUVs because they were cheap.
Let's not forget that the Big 3 did not spend their earnings on R&D like Honda and Toyota, but instead on cheesy ad campaigns and ridiculous CEO pay.
Will someone please explain to me why we should continue bailing out and socializing publicly traded companies. GM did not seem to need a bailout last week when they celebrated the opening of their new St. Petersburg plant in Russia with President Dmitry Medvedev.
AIG used their money to throw a party. Now we are being told that hundreds of millions of this bailout plan will be used for bonuses.
I always thought bonuses were a percentage of profits returned to those people involved in producing said profits. If you need a bailout, you do not have profits and in turn, if you do not have profits, you have not earned any bonuses.
By the way, how is it that the Big 3 need 25 Billion to retool existing plants in the US, but GM just opened an entire new Russian plant for only 300 million? Does the EPA or UAW have anything to do with it? Should US consumers even consider buying cadillacs assembled in Russia?
Anyone who doesn't think China is in trouble - where by the way, Buick is the top selling car - needs to read this week's Newsweek magazine and check the rate of suicides.
Of course the Republican's won't vote for an auto bailout, that would be assisting blue collar workers from blue states. Check out the states where these Republican's come from.
I think the automakers should ask the oil produces for the loan... Exxon could easily lend the 25 billion to GM... GM has been supporting them... The oil companies are the ones who stand to loose.... Or maybe they could borrow from the UAW.... they too contributed to the problems GM is having... The UAW is the perfect model for how not to run a union.
This is the perfect time for GM and the others to fire ALL of their employees.... there are tons of non UAW member who are in need of work... Any high school education would qualify a worker to work an assembly line.
Hey.. I have it.... Maybe the UAW could buy GM with the money that have stolen from their members. Of course if they did they would insist on renegotiating the union contract...
Hey GM... why don't you shut down your plants and reopen them in a state that will show you some mercy.
NO BAILOUT FOR MAKING LOUSY CARS, no one wanted to buy them because they're gas guzzling, unreliable, not durable, ugly designed soap boxes. Put them out of their misery.
I agree with the republican senators no bailout 4 the automakers~ They mismanaged funds period~ Has anyone offered 2 BAIL you out of your financial mess lately????????? GLORIAB (Bambi)(p.s.) $35.00 an hr for a janitor sweeping floors @ the headquarters
The reasons the top republicans don't won't to bail out the auto industry is because they don't have any money tied up in it. But they bailed out wall street because they had stock in it. Do they care about what would happened to our economy if this auto industry goes bankrupt?
Hey, I worked for GM for 16 years. The bail out should be done , but with hard conditions and oversite. The BIG problem with the BIG three is this. Stupid moves Stupid designs and most of all. They live with the short way of thinking , BIG cars ,Big profits......THATS why they are falling apart......Wake up Detroit................Ted
The US auto makers' problems started in 1962 when Ford sold the small Ford Cardinal to Ford of Germany with the proviso that the car never be introduced in the US. It was a great small car that would have slowed the invasion of VW beetles, as well as Japanese imports, to a crawl. Now most "foreign" car makers are really domestic, but better run with superior products to the "Big 3". It has been quick-profit, short sighted attitude by Big 3 for decades, and let's not hold the UAW blameless, and they are the workers themselves. NO BAILOUT!
WOW ... isn't that nice ... just imagine that someone knocks on your door and tells you that all your debts are paid off and that you don't have to make any changes on your behavior ... you can continue spending freely ... only in America!
Why don't the big fat cats (CEO and managers) give up their bonus for the next few years. Automakers are looking for a handout. They have made millions and the workers have not been under paid. Welcome to the real world people. Keep taking from the little guy isn't that what this is all about. They should be ashamed of themselfs. I guess they need a paid vacation from the tax payers.
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