The Public Is Not Sold on the Detroit Three Bailout

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It's interesting that Toyota is managing to open new plant these days and yet the 'big 3' are asking for public handouts.
Given the fact that GM can't even make a door hinge that doesn't need pin replacement after a year or a rear defogger that actually stays attached to the rear window I find it insulting they even dare to ask for help. How will they ever repay that $34B that is 34000 millions of dollars!!! how about asking the big oil companies for a loan?
I don't see how the 'big 3' can recover even with the bailout. The bailout will just delay the inevitable collapse. The blood sucking unions, the sense of entitlement, the American mentality (more power=larger engine instead of more power=more efficient engine) - not looking promising!!!
Also what is with the 3 CEOs now saying they will work for a $1 a year - this is a misleading BS. Most of their income comes from 'unearned' bonuses not from salary. The salary is a small fraction of what they unjustifiably get from the company.

Daniel Placzek of MI 3:41PM December 05, 2008

I don't believe the government should use tax payer money to help these auto industries. Does the government bail out people who can't afford to pay for car payments? NO !! Why does the government repeatedly bail out all the rich people? This is wrong. The government just keeps throwing a life line into a sinking black hole that never ends. These auto makers must learn a lesson from this. Hardship makes businesses try harder and hardship gives wisdom.

of CA 11:59PM December 04, 2008

Let the oil companies bail them out - they have been sleeping together for decades - who will be hurt the most if the big 3 finally do what they have been told to do since the 70's? Start manufacturing fuel efficient cars that ease our dependence on oil - but they have not listened. I agree with Larry - same old tired management with the same old tired policies. And when the executives fly to Washington in their private jets with their hands out makes me sick. Let them file Chapter 11 and reorganize and we might finally see some real change in these companies.

Pam of CO 10:10AM November 27, 2008

Forgive me if I am not up to date regarding this issue ,but a "bridge loan" is warranted so that a reorganising process can begin.That is what I've heard thus far-not a blank check that the "chicken littles" on mcnbc& cnn have screaming about.If it were not for the Big Three ,the Allied Victory in two theatres of war (Pacific& Europe) would have been harder if not impossible.

Bill of VA 4:08PM November 21, 2008

You bet'cha I am agin it.
We have overpopulated our planet with automobiles.
We have smog, Noise, air and ground pollution to a holocaust extent. Loss of lives and injuries is astounding.
The costs toour society are in the trillions for years of support for their products: roads` and maintenance, traffic problems and paraphernalia, police survwillance. Extra load on hospitals, ambulances, coroners, court cases,street cleaning,etc.

mynalee johnstone of WA 11:03AM November 20, 2008

It seems to me a bailout of the big 3 would just be kicking the can down the road. It doesn't do anything to address the root causes of the problem. These companies desperately need the top to bottom reorg that only chapter 11 would provide. Without it, we're looking at them coming back for more handouts in the years to come.

David of ME 10:42AM November 19, 2008

The United Auto Workers bear much of the responsibility for the death of the US auto industry, and yet they are still beating their chests about how they "won't allow any more concessions to management", as if it's August, 1960 and they have the power to bring the industry to a halt. What they seem to have missed is that they have already brought the industry to a halt.
Bankruptcy is the only solution - along with the legal authority to renegotiate labor contracts, health care liabilities, and pension liabilities. Otherwise, the UAW had better get used to working with metric wrenches.

bobdog of IL 3:37PM November 18, 2008

This insanity of using taxpayer money as a bank loan must end, in fact it will end regardless.
We live in a free market society and the more we dilute it via government prop ups, the worst the inevitable pain it will be when we land on the rocks below.
GM cannot possibly survive with their bulky and anti-competitive labor costs no matter how much money is thrown at it, you could simply give them the entire 700 billion dollars, force them to make 50 mpg cars and they will die on the vine...it will just take a bit longer.
If GM or any private company wishes to survive then they need a realistic and viable plan to do so for the long term and if they can't do that then they will disappear.
GM needs to file chapter 11 to force reorganization of their labor costs and bu all means, keep the government out or else the higher ups will slowly loot the company and the workers will lose out anyhow...in the end.
I hate to use the word Socialism in regards to what is going on at this moment by a Republican President but GW is laying the groundwork for just that.
Massive amounts of money are going into privately held companies where the government is asserting control and the regular working people will continue to bear the entire costs while at the same time, narrowing our options and liberties in what we can and cannot have a say in,
Hard times are coming and where we should be making plans on how to deal with it and get through it, it seems like we are misguided with the concept of buying our way out of it using money we don't even have that will land us in a much worse place than we are headed now.

Yuri of FL 5:56AM November 18, 2008

I think they should have to go bankrupt, re-organize, and be profitable companies such as Toyota. Ford, GM and Chrysler pay theit employees WAY too much. I have had two jobs where I was seeing Layoffs due to the company shipping the assembly line overseas due to the Union's contract failures. I think the labor union is to blame for all of this. We Americans are getting too greedy. I believe hard work should pay well, However, I don't beleive assembly line workers should make more than the engineers that design the parts that are being assembled(I have been on both sides, as an assembly line worker, and as an engineer), and I KNOW from experience that engineering work is much more difficult overall, and therefore Should pay more! I think all labor unions should be disbanded, we have enough federal regulations for the safely of employees and employers, not to mention OSHA and ISO regulations. I think all workers deserve a fair wage. John Deere went through the same thing the big three automakers in Detroit need to do. They restructured their business and also lowered wags but still pay a decent wage so workers can support their families. I know alot of Americans are losing or going to lose thier jobs soon. I may as well, but that is life, noone ever said it was fair.
I also think the bailout of Wall Street was a mistake. The housing market would have stabilized eventually, or alot of people would be getting cheaper houses eventually and many investors would end up losing money. That is the the law of supply and demand for God sakes! If our government keeps bailing everyone out(except for American citizens, financially) we will have an economy controlled by the government, which is dangerously close to a communist economy. We defend Democracy and freedom, which we should, so why is our government taking over in areas it shouldn't be allowed to? Because of GREED! Why does a CEO make millions when a businesss has no profit? There are too many companies to name that have this problem in our country. We cannot have an economy that is based on "rob Peter to pay Paul" when it is designed to be Supply and Demand. I think our contry is on the brink of a major upheaval because everyone wants something for nothing, look at the country's gambling problem, and all the "get rich quick" scams going around.
We all need to look in the mirror. We need to learn to be thankful for what we do have, and if we think we need something better, we should better ourselves both inside in out first; by completing our educations, and finding God again. Maybe if we all took responsibility for our actions and put God and family first, wel would all be better off. Life would not be as "FUN", but alot less stressful, there would be less problems in our country, less stealing,rape,murder, adultery,gambling, greediness, and just plain meanness. We are ONE NATION UNDER GOD. LET'S ACT LIKE IT! I am no better than anyone else. May God forgive us all. Amen

Shane Peterson of IA 2:59AM November 18, 2008

'The 15% Solution"
One possible approach to dealing with the auto crisis -- The federal government could give any one who buys a fuel efficient car from the Big 3 a 15% instant rebate back on the selling price. This program could have an 18 month time limit.
The total of the rebate dollars might then constitute a loan the auto makers would have to pay back.
If effective, this solution would immediately jump start US auto makers by giving them a huge advantage over the competition while they work on the remaining legacy issues. Auto makers would stay employed and no money would go directly to the car makers.
The feds might also think about underwriting an extended car warranty program for this period. Again, the total dollars to do so, could constitute a loan to the auto makers.
If the dollars don't proof out, the concept still might we worth exploring.
Joseph Hare
Hingham, MA.
More.....
A quick direct "15%" instant government rebate (say averaging around $3,000) from the Dept of Treasury paid to consumer with purchase of a US auto maker lower mileage car might make these cars especially attractive,
The problem with the fed using IRS tax return deductions is you only get indirect value (a lower tax payment) and but once a year (April 15).... and higher wage earners get more real dollar benefit.
I thinkt this rebate program would get consumer attention/visibility. Hey, If you could buy a Camry priced today at $20,000 for $20,000 versus a Malibu priced today for $20,000 for $17,000 (plus get a10 year warranty), which would you buy?
Such a program, if it worked, would give auto makers an instant dramatic jump start while they work on getting
more cars that would sell (without rebate program) developed and while they deal with worker legacy issues.
Giving a bailout just keeps them from going bankrupt while they try to get a higher % of americans to buy their cars. They have not suceeded in doing that over the last 20 years. Assuming Americans were motivated to buy fuel efficient Gm-Ford-Chrysler cars, the biggest stumbling blocks might be that the auto makers could not retool fast enough to produce enough low mpg cars to get profitable, that they could not get rid of their gas guzzlers, and that the union entitlement are still choking them..

Joseph Hare of MA 10:49PM November 17, 2008