Why Congress Might Try to Bail Out Big 3 Carmakers After All

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adjuct of AL 5:46PM February 24, 2010

I don't think people understand that if the big 3 fail then we as americans fail. There will be no chance for survival if the they shutdown. Michigan is always bailing other people out. Don't people know that if the big 3 go down it doesn't just affect us in the state of Michigan, it affects Millions of people everywhere. The blame should not be placed on the the Auto workers, however higher management should be held responsible I think for not managing, and maintaining money situations.
We will all suffer in the end. SUPPORT OUR BIG 3.

of MI 8:33AM December 15, 2008

You realize how many have alredy lost there jobs from GM. If Gm doesn't stay alive , there employee's loose there homes and that isn't fair. And for the remark made about them Gm worker's making 29.00 dollars. They have been there at their jobs for over 30 years. Yeah, they deserve that money they have worked 30 years to get it. So why should they have to take a cut in pay.

rita jeffries of TN 8:37PM December 13, 2008

Actually it is UAW bailout.

Rodney Cooper of LA 1:17PM December 10, 2008

I've read the articles that describe how the big three will be controlled by a czar, have no corporate jets, and go through some sort of reorganization.
But what I don't see is any wording on how big labor will adjust to make the big 3 more competitive with the "transplants" who are effectively operating at a profit in the right-to-work states.
A recent article published in the Wall Street Journal described an average wage difference of $29/hour between employees in the big 3 and the transplants. It is speculated that the differences in pay between the two groups is likely going toward the UAW's retirement benefits, layoff salary insurance, medical coverage, and general labor union overhead costs. The transplants have significantly less expenditures in these areas.
The transplants have proven that it is possible to run a company and keep your employees happy enough to avoid the labor union's entry. Its also interesting to hear testimonies of the UAW employees who say that they are taking home about the same as those in the tranplants.
So my question is what is big labor doing to reduce the $29 per hour difference between the big 3 and the transplants. This huge labor expenditure is a significant component of the big 3's not being competitive with the transplants (transplants are selling 53% of the cars in the US).
I predict that the big 3 will likely fail in the future despite the government bail out, as long as big labor is sticking to its high priced employee benefits plans.

Iggy1962 of AL 5:12PM December 09, 2008

If the senate does not pass this bill as there are 10 republican votes needed not only can we kiss GM gone but United States may follow.
Foreign countries will be watching this and if things turn negative which looks very possible they my decide to pull the pug on the debt they hold. With all this bailout it is these countries that will be supporting the bailouts not the United States. Right now foreign countries are having there own problems and need all the money they can get for there own bailouts.
People seem to assume that United States has unlimited money but right now it is simply printing it. When nobody picks up the debt interest rates will go though the roof. United States then becomes a banana republic. This economic problem is likely to go on for years. Too much capital has been lost.

Arthur Gittleman of AR 4:55PM December 09, 2008

We are competing against Countries! These Countries subsidize research and development and also have socialized medicine. How do we compete against Countries that buy commodities in bulk for their auto industry, do not adhere to the same EPA regulations, and have indentured servants as employees?
I am all in favor of free trade, we just need to level the playing field and make it fair trade.

rgb of MI 4:39PM December 09, 2008

Us taxpayers have to help bail them out?!? For what? Do the Big 3 not watch how they spend? They can't figure out their head people make too much while others don't. Share the wealth don't take it from others! So if and when the loan goes through, hopefullly the "big 3" don't squander it on the nonessentials. I hope they can produce better cars, alternative fueled cars.
If anything I hope my tax money goes to something better like helping out the middle class fire victims.

G of CA 11:27AM December 09, 2008

I DON'T BLAME ANY-SIDE BUT STRONGLY WANT AMERICAN AUTO-MAKERS COMPETE IN A 'CAPITALISTIC ECONOMY - SURVIVAL FOR THE FITTEST' MANNER.
IN EARLY 2000 THERE WAS A 'BUSINESS TAX-REBATE' FOR CAR'S OVER 4000LB (SUV/TRUCK/HUMMER). AND THEN OIL-PRICE WENT UP, PROFITING OIL SUPPLIERS.
THIS TIME WHY NOT SOME OF THOSE PROFIT GO BACK TO AUTOMAKER'S PRODUCING LARGER AUTO THAT CONSUMES MORE GAS, HELPING GAS-PRODUCERS/SUPPLIERS.
EITHER COMPETE WITH DOMESTIC TOYOTA/HONDA OTHERWISE...
POST YOUR REMARKS.

of MS 8:12PM December 08, 2008