http://www.autoblog.com/2008/12/11/b...in-the-senate/

 

Some day, I'll tell my son about the time when America made things, and was a great power in the world. Then I'll probably put on my blue vest and go stand by the door in WalMart for 8 hours.

 

It's not just a blue vest. It's a blue POLYESTER vest.

If that wasn't so sad it'd be funny.

Once we made televisions in North America. Not anymore.
Once we made radios and stereos in North America. Not anymore.
Once we made cameras in North America. Not anymore.
Once we made cars in North America. Not anymore.

Welcome to the United States of China. I look forward to the American and Canadian Forces rolling into battle in the new Chery Humvee.

 

Repercussions of failed automaker bailout spreading quickly

Nekkei index plumments, GM retains the services of bankruptcy advisors

Full story here.

 

If GM or Chrysler go under, then Ford's probably going to go bye-bye, too.

Screw this, I'm getting off the train before it derails, and am contacting my local Nissan dealership about the 370Z. I can live with the funky taillights and headlights, really, I can...

 

Yep, and I expect more and more buyers will "read the tea leaves" and jump ship as well.

This is an unmitigated disaster. I LMAO at the people who think bankruptcy will be a GREAT way for GM to restructure. I got news for ya: ain't gonna happen. No-one will fund a Chapter 11 restructuring of ANY company right now, least of all one that is as close to the brink as General Motors. So it will be Chapter 7, then. Liquidation. You had your 100 years, bye-bye GM.

Watch the domestic auto industry fall like a house of cards after that. This is Russian Roulette with the economy, folks. Prepare to wave goodbye to the recession on your way to a depression.

Remember, too, if you have a diversified mutual fund portfolio, it's likely you have some money in GM.

Only chance now is for Bush to siphon off some money from TARP for this bridge loan, which he may well do since he probably doesn't want to be known as the president who killed General Motors for his last act as president.

 

Why, when the main argument in favour of the bailout was the concern for the auto industry jobs, did this happen:

http://edition.cnn.com/2008/BUSINESS...ets/index.html

Another thing I don't get when I look at what's happening in the US from across the pond: the majority of Big Three customers is conservative (not a lot of muscle cars and pick-up trucks in Al Gore's garage, I'm sure), yet it was the Republicans who voted against the bailout.

What is there to be gained (by the politicians, of course) from bankrupting the Big 3 and a lot of suppliers with them? I understand the public opinion is against a bailout from non-budgeted taxpayer funds, but couldn't the richest country in the world find the money in another pocket? Why not redirect funds stupidly allocated to "defending" Europe with a missile shield (against whom, may I ask?) to defending 1 million Americans who will lose their jobs if Detroit falls?

 

Well, if I'm honest, the UAW demands stick in my craw, enough so that my knee-jerk reaction is like many around here: let 'em fail, shed the UAW once and for all, then restructure..

Trouble is: the issue is MUCH bigger than just the UAW situation. This industry cannot be allowed to fail for myriad reasons, which leads to your next point...

I'm guessing if you talked to each of the Republicans who voted against the bill you would get a different answer: "ideologically opposed"; "don't want to **** off my constituents and risk my political future because the majority of them are against the bailout"; "fundamentally disgusted by the UAW's arrogance" (can't really blame 'em on that one) - and probably a few who are simple playing irresponsible partisan politics because they lost the election and just really want to make as big a mess for the Democrats as they can. Then there's Senator Dick Shelby from Alabama. His reason for voting against? No domestic car factories in Alabama, but there sure are Toyota and Honda factories down there. Or as Peter M. De Lorenzo wrote over at AutoExtremist >>

Dick Shelby. The stumblebum Senator from Alabama could barely contain his glee at the sight of the CEOs of the Detroit Three sitting before him asking for bridge loans. His mind was as closed as the incentive-laced back room deals that he helped grease in order for Hyundai, Mercedes-Benz, Honda and Toyota to build plants in his home state. It's not a national problem, he insists, even though Toyota and Honda are both extremely fearful that if one of the Detroit Three goes down, it will take their shared suppliers down with them. Shelby is a clueless, self-serving buffoon who displayed his true colors for all of America to see on Tuesday. Nicely done.

 

stupid unions

 

As Elmer Fudd would say; “Oh, those wascally Wepublicans!” Neither the Republican Party, or the Democratic Party has a monopoly on ego, stupidity, or corruption. (See Blagojevich, Rod. I’ll take Village Idiots holding Public Office for $200, Alex.)

It was not ‘The Republicans’ that ran Chrysler into the ground. George Bush is not the reason GM has not turned a profit since 2004. I suppose it’s pointless to point out that during the same time GM lost $73 billion, Toyota made billions and became the second largest automobile maker in the world—adhering to the same safety, emissions, and CAFE standards as GM.

If you don’t like the GOP, do what I do—don’t vote for their candidates. But to blame the GOP for the failure of the auto industry is disingenuous. *

I am not vehemently opposed to the bail-out, though I confess it disgusts me to hand over taxpayer (yours and my) dollars to those who seem to spend them, in my opinion, indiscriminately. However, I do have my doubts whether handing over tens of billions of dollars is really a solution to the problem. I believe that GM, Ford, and Chrysler deserve a chance to survive, but not everyone believes that throwing money at the situation will guarantee the desired results.

http://www.detnews.com/apps/pbcs.dll/article?AID=/20081211/AUTO01/812110364/1148/AUTO01

As the article from the Detroit News points out, it may be too late for Chrysler. It is just my opinion (not to be mistaken for a fact), but I think the analysis is correct. I don’t see Chrysler surviving as an independent automotive operation—even with the additional money from Washington. Having said that—why would anyone spend $20 billion dollars merely to prolong the inevitable? Is there a guarantee giving GM the bail-out money will return them to profitability?

* BTW the UAW doesn’t like the Republican Party either—in the last round of elections the UAW political action committee contributed almost $2 billion dollars to congressional campaigns—only $12,500 went to Republicans. Could it be the UAW is hoping for a payback from a Democratic controlled Congress to help make it easier to Unionize foreign owned auto operations in the US?

 

Funny how all along I have said the problem is with the UAW and sure enough, when it came down to saying "If you want our money, you have to reduce how much you are paying your workers". The UAW simple said no, thus the bill failed.

 

I have said this in another thread, but I will say it again here...The Clowns on Capitol Hill couldn't wait to drop their pants to crap the money for the banking/mortgage failures but give the auto business (the last bastion of our once strong manufacturing sector) the royal shaft. Today I am ashamed to call myself a Republican.

I hope GW does the right thing.

 

I wanna know why the white house is talking about giving the money to the auto industry now that congress didn't. Whats the point of congress if the white out can just decide whatever they want anyway?

 

http://www.allpar.com/weblogs/2008/1...ill-need-cash/
http://www.allpar.com/weblogs/2008/1...ives-to-loans/

 

Bull:
http://www.autoblog.com/2008/12/12/u...e-republicans/
The UAW was/is willing to bring wages down to save the company, but Dick Shelby and Friends demanded that it happen overnight. This was not a negotiation, the Democrats and the Auto industry gave in to everything the Republicans objected to. The money was to come from a green-car development fund instead of TARP or new sources. A "Car Czar" with the power to force GM/Chrysler into Bankruptcy and appointed by the Lame-Duck Administration. And about half the money they asked for. AND they were going to bring wages down. But because they refused to do that last bit instantly, the Republicans voted against cloture.

If you want to paint the above as the evil Union standing in the way, that's your right. To me, it says the Shelby wing of the GOP is completely unwilling to seek compromise or common ground and killed the bill because they wanted to anyway and put up win-win demands. Either they get everything they want and get to be the king-makers, or the manufacturing of goods in the Midwest ends and their states benefit (or see the least damage, anyway).

 

The White House through the Department of Treasury has power to commit funding that is already under their control. The TARP money was given to Treasury with few to no limits on where precisely it can be used, so if the Administration decides to put it in the Auto Industry they likely can. They can't conjure up money from nothing, only Congress has the power to do that, but once the money is in-play the Administration can spend it however they wish within the rules, or lack thereof, set by Congress for that money.

 

Thank you for the explanation!

 

It's amazing to me that the hatred for the union is so great that people are willing to kill the automakers just to destroy the union.

It's like a doctor saying, "Let's shoot the patient in the head so he'll die! That will take care of those tapeworms once and for all!"

 

No one's blaming the Republicans for the failure of the auto industry, we're blaming them for not considering the larger economic ramifications by NOT HELPING THEM in their hour of need.

Big difference.

Oh, and BTW: failed trade policies by the US government are a PART of the reason why American automakers cannot compete effectively against imports on home soil. There is plenty of blame to go around, from the Big 3 to the government to the union. But right now the ball is in the government's hands, and the Republicans are playing politics with it instead of trying to save the last great American manufacturing industry...and the economy along with it.

 

Hope Dick Shelby is enjoying his Hondoyota kickbacks.

Someone over at Autoblog said it very well: This is an insane abdication of US sovereignty. It's one thing to let the market decide if a company is paying unsustainable wages. It's another for the US Senate to compel US workers to work for wages set by foreign competitors to US industries.