Ailing Carmakers Return to Congress, This Time Asking for $34 Billion
Reader Comments
Bailout Buy Out
I support the "bailout" if and only if the following concessions are placed on the "Big Three" and they are adhered too.
1) Serious salary cuts to the Executives
2) Serious hourly wage cuts to the plant workers
3) Serious retooling concessions forcing the "Big Three" to start developing smaller compac cars that are more energy efficient
4) A graduated portion of their requested money allocated quarterly and based on meeting the concessions placed on them. At anytime they fail to make deadlines placed on them, pull the funding plug.
5) Stop all overtime
Workers need to ask themselves; Is it better to have a lower paying job or to be jobless?
I am sure there are thousands of unemployed workers that would love to have a job on an assembly line that pays one half of what the current workers are making.
If the Japanese auto makers can pay their workers a starting salary of less than $15 an hour and make longer lasting, energy efficient vehicles than so can the big three.
If they cant meet the expectations of americans let them go. After all with the economy being as poor as it is not many americans can get loans to buy their vehicles, there for we are just extending the inevitable failure of the bib three.
Kleptocracy in Action
This problem was caused by the banks and is a lot more complicated and kleptocratic than people realize. The public, fed by myths and lies, has once again turned into an angry mob ready to lynch everyone but the true culprits.
Members of McCain's campaign staff have received over $2.4 million to lobby on behalf of foreign car makers. Almost every state in the union uses 100s of millions of taxpayer money to entice foreign car makers to produce in their states while no foreign auto producing countries offer our car makers incentives.
The EPA, JD Powers, and Consumer Reports have rated American cars on par with or superior in quality and gas mileage to foreign cars. Foreign car builders have invested heavily in SUVs and trucks, but the EPA rates gas mileage on all full size domestic trucks higher than their foreign competitors.
Ford and GM both offer more hybrid models than Toyota and Nissan.
Almost all foreign car makers are now seeking emergency loans from their respective governments and they will get them because other countries realize how important their manufacturing capability is.
Put down the rope.
http://ewebsmith.com/gov/autobailout.html
Opposition to Auto Bridge Loans
What irks me is that it is the south, particularly Alabama, leading the opposition to bridge loans for the Big Three. Consider that Michigan has traditionally been near the bottom of the list for the return it receives from the funds it sends to Washington. According to the Tax Foundation, Michigan got back 92 cents in federal spending for every tax dollar sent in 2005 (the most recent figures available). That ranks it 37th among all states. If you go back to 1981 the state received 81 cents and was ranked 47th. For the period of 1981 to 2005, Michigan PAID $197 billion more to the federal government than it received. It is safe to say that the big three, its employees, suppliers, etc., have been a source of much of that. During that same period, Alabama has RECEIVED $166 billion more than it has contributed; It received $1.61 for every dollar sent to Washington in 2005. I guess that is how it has been able to afford the $650 million in tax incentives it has provided for transplant automakers.
