A $25 Billion Lifeline for GM, Ford, and Chrysler

car makers loan/bailout

GM, Ford, and Chrysler should ask the Chinese government or financial industry to borrow the $34 billion dollars that they need. China has all the U.S. dollars it cumulated from exporting to US and buying US debt. If the car manufacturers fail then the Chinese would have first crack at purchasing three large functioning car firms that already sell their products world-wide.

US govenment can't object to a foreign government buying companies that they are will to see fail. It can't argue that the companies are vital to US security. Firms have to be worth more the $34 billion dollars even in a firesale.

Betty Culpepper of MD @ Dec 11, 2008 08:08:09 AM

Auto Industry Bailout

If tax payers have to put up the money to save our auto industry

I will support it but I dont like it.I dont feel we should have to support an indutry that has let this country down with poor products,service and high prices.The auto industry is needed for the econony of this nation. I strongly support the tax payers loaning eny amount that is needed to the auto industry

and hope we will again be a leader with the products we produce in the US and ship overseas again as we ounce were.

Signed.

Ron Boe

Joyce Boe

Dave Oberkramer

Paula Obercramer

Ron Boe of CA @ Dec 09, 2008 00:31:17 AM

Detroit's Big 3 bailout!

There has been lots of information about the possible bailout

to the tune of, at least, 25 billion dollars.Nothing has been

made available as to how this money will be used. There has been no mention of how much of the manufacturing processes have been moved to Brazil, Argentina and others. Ford's most modern facility is in Brazil and some of the smaller models are bieng made in Argentina. I received videos of these plants. How do we know that these funds will be invested in the U.S? Many of our largest corporations, especially the multinational corporatios,have exported millions of jobs to the exterior. This is the main cause of the economic meltdown. Have these

forgotten about the people who worked for so long in hopes of having a better future and a healthy retirement? The global economy has backfired and it seems the financial institutions are the main cause of the debackle and they're getting the financial breaks. The middle class is in deep trouble and may completely dissappear if things don't begin to turn around soon. This may be the final goal of big business

plus the help of the government by deregulating controls. It's a huge mess. GOD BLESS AMERICA!!! We either change or suffer the consecuances!!! Me and my family survived the 30's-50's and it seems to be happening again and this time it could be worse.There is no assurance as to the time it could take to turn this situation around.I feel like our country is being led to diaster by modern Pied Pipers. We are blindly following the music. Let's wake up in time or suffer the consecuences.

Joseph Morris of SC @ Dec 08, 2008 23:09:57 PM

The "Big Three Bailout" ?

Why in the world are they doing this? Is it just for the Unions in Detroit? No one came to the aid of the Textile Industry ( more jobs than they have in Detroit) - when they needed help - they survied by out sourcing like most of the companies ( Furniture) that are still around - why not the auto industry - out source and assemble in the U.S. save some jobs and be competive - that is what it is all about - why not let them go Bankrupt ?- not going to close the plants - just make them work better at a lower cost - contact your representative now and tell them this is a bad deal - just my thoughts

Mike Johnson of NC @ Dec 07, 2008 15:34:42 PM

BAILOUT

I have used very few american cars and for very good reason. I feel bad for the workers who might lose their jobs. I also would like to see the the automakers have a plan to improve; because obviously it's not working as it is. They make cars that use to much gas breakdown easily and when you have problem with the car they don't want to take responsibiity. To top it off they charge to much for repairs and the consumer usually loses the use of the car for days in som e cases. I am basing this on personal experience and that is why I now drive a European car.The big 3 need to improve or they should be bailed out.

wmy of CA @ Dec 07, 2008 14:00:54 PM

bailout automotive industry

the unions have to make concessions on salarys if they want it to work also they have to manufacture more smaller and more fuel efficient cars cut also jobs so they have less money to operate for workers also cut the salarys of executives

vincent velardi of NY @ Dec 07, 2008 10:51:18 AM

How A CPA Would Bailout the Auto Industry

Forget about writing any checks to the big three. I can bailout the auto industry without the government having to write a check.

This is how you do it: Eliminate temporarily for six months the "Listed Property" rules in the Tax Code for domestically manufactured autos . By doing this- every automobile on the dealer lots will be sold instantaneously.

Why? Because the tax savings on these automobiles will be so great that it will allow the purchasers to bankrole the acquisition of autos using tax dollars saved.

For those of you who have no idea what I am talking about- here is the explanation:

During the Ronald Reagan era, to stimulate the economy accelerated depreciation rules were introduced, including the concept of section 179- which is the complete writeoff of an asset within a one year period, even if you acquired the asset by borrowing the money. However, in an effort to prevent abuse of these rules, automobiles were severely limited from these accelerated writeoff benefits. Basically all automobiles are subject to the "Listed Property" rules which severely limits the depreciation deduction a business can take annually on an automobile that has been purchased. That is why so many businesses "lease vs buy" an auto. It does not pay economically to purchase an auto.

With the new Stimulus Act earlier this year the first-year limit on depreciation for passenger automobiles was increased by $8,000. For example if you purchased a passenger auto for over $45,000 (passenger auto is defined as less than 6,000 pounds in gross vehicle weight) during 2008 and used it 100% for business you would be able to expense $10,960 in the first year.

In the 36% federal bracket, this could save you approx $4,000. THIS IS GOOD BUT NOT EARTHSHAKING..

Now imagine if that same taxpayer could writeoff completely the $45,000 in one year.

That would save him over $16,000!!! That is enough savings to cover a full year of payments with no downpayments... NOW THAT IS IMPRESSIVE AND VERY STIMULATING

Michael Rosedale of NY @ Dec 06, 2008 17:10:32 PM

WHY

Who is going to buy the cars after their bailout? There are cars stacking up from overseas in wharewhouses in California. Those will probaly be sold much more cheaply and quickly than new cars created by the bailout. I think the bailout money will only go to corperate executives and union activities. Even with 0% interest and no money down, I could not afford the payments. I make a good salary. It has not kept up with the cost of living however. There are too many cars available for demand. What is the thinking behind this bailout? I don't see anything but a push for cash to bailout for the above mentioned.

Is the auto industry going to cut their prices by 50% to make them more affordable? Are they going to take out their manufactured obselensence? Please give a good reason for a bailout.

Wes Thomas of TX @ Dec 06, 2008 11:37:29 AM