Carmakers Plead Bailout Case to an Increasingly Skeptical Congress

Did you know?

The CEO's of the Big Three showed up in Washington in PRIVATE CORPORATE JETS?

As with Wall Street, this isn't about bailing out anything but the greedy and arrogant CEO's of mismanaged companies.

Doing the same thing over and over and expecting a different result is the definition of insanity.

Out of touch Bush and Republicans

If it is not such a doomsday scenario why did't we let Wall Street file bankruptcy, restructure and start over again with stiff regulations about separation of banks and investment industry. These Wall Street idiots have multi-millions to fall back on. They could sell one of their multi-million dollar homes and still live in luxury. But, the blue-collar workers and Main Street America, we don't have millions to fall back on. Make Wall Street pay back the billions they took for granted, and wasted, let them restructure and let's get the auto industry back to work. Of course, Bush and the mindless Republicans are more concerned about Wall Street they have millions invested and want to make sure they protect themselves and the hell with the rest of us. That's the Republican way.

Bailout

Any bailout for the industry must include a cut in pay for the top layers of management. After all, their bad performance has contributed to the current situation. I propose $0 pay for all upper levels until the auto makers show a profit consecutively for five quarters. Let them receive rewards AFTER they perform.

Bail-out vs Unemployment

Look at it this way - 3 million or more people out of work if the auto industry is not bailed-out. 3 million people not paying taxes, not able to keep up with mortgages, not able to keep up with the cost of sending kids to school, and a dozen other things. This not only effect the automakers but every city and town, and business where the employees live.

Ultimately 3 million people out of work means 3 million people living on unemployment pay. One way or the other the government will be paying. Let's find a way to keep as many people as possible gainfully employed. This bail-out should be about keeping people employed and getting the economy back on track as soon as is possible.

Bail Out Option

Instead of another stimulus package to the public, which barely reaches the market, or handing cash to the “Big Three,” which they will just mishandle and waste, the government could:

Offer government paid incentives to car buyers to purchase cars from the Big Three. This could be 20-25% of the purchase price and would be paid directly to the dealers after they submit documentation. Buyers would negotiate their best deal, then subtract the government rebate. This would accomplish many things:

1. People would keep working- everybody at the dealers and the automakers

2. Put the money directly into the economy

3. Get the car inventories moving

4. Banks could keep people working and make more balanced car loans with lower principles

5. The automakers would have increased revenue

6. Even if the rebates average $7,500 and they sell one million cars, it is still less expensive that the reported $25 billion.

Then the automakers could receive back-end incentives to begin making fuel-efficient vehicles. This has to be a better option than giving “free” money directly to the automakers.

A Viable Option!!!

Carmakers can resurrect themselves simply, easily and quickly by a few simple steps. 1) Build Fuel Cell Autos 2) install hydrogen fueling stations from natural gas at all dealerships 3) work with oil companies and DOE to build a hydrogen infrastructure 4) make all hydrogen fuel cell autos hybrids so they can run on electric power till hydrogen fueling stations are available. Four simple steps to resurrect the carmakers, restore brand loyalty, generate revenue, clean the air, reduce manufacturing costs and join the world in a new hydrogen economy. Aside from the fuel cell power source, hydrogen fuel cell autos are much cheaper to produce with less moving parts, less mechanics, less maintenance, less overhead and less wear and tear. We are talking only a fuel cell, electrc motors and wires no fuel lines, engine, oil, gasoline, filters, hoses, etc... Everything is R&R maintenance requiring a dealer. Simple solution if they would stop whining and start working!!!

Don't know if anyone from Congress reads these post but

If they do they should know that the American taxpayers are tired of bailing failing companies that have been paying their executives millions of dollars. We don't want tax dollars used to buy a stake in the companies; if we wanted a stake in the company we would purchase stocks for ourselves.

I just can't believe that all the "Smart" people in Congress can't see that sending billions of dollars to a old tired company with old tired ideas and old tired management with the same old tired goals is not going to do anything but delay the collapse or line the pockets of the people Obama claims he is going to tax.

Am I missing something?

I know they are "too big to fail". What a slap in the face of every small business that is trying to survive. Where has the growth come from? Where have the jobs come from?

How about this give the money back to the people that sent it to you and let them spend it wisely???