US Auto bailout rejected
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- designbot0
I was interested to see what other peeps in here thought....
Personally I am glad this was rejected. Bailing them out would be like voting president Bush in for another 4 years. In other words, the auto manufacturers would be giving us "more of the same"...and who want's to pay for that? We need true ingenuity. Is it a big surprise they are in this mess? Nobody wants the shit cars they have been producing for years and years....they could have taken notes from foreign manufactures like Honda, Toyota and all the others. Companies that are innovative and producing some superb automobiles. But they didn't......and it's not the governments place to step in and bail them out with the American peoples money. I see comments like "good thing they bailed out the banks and not these guys" where is the logic in that reasoning? Any bailout is a bad idea period....and trying to justify one bailout because another already took place doesn't make any sense.
- ukit0
http://www.politico.com/news/sto…
The White House, stung by its loss in the Senate and the prospect of falling markets, opened the door Friday to possibly using Treasury financial market rescue funds to prop up the auto industry until a new Congress convenes in January.
“Under normal economic conditions we would prefer that markets determine the ultimate fate of private firms,” the administration said in a statement. “However, given the current weakened state of the U.S. economy, we will consider other options if necessary – including use of the TARP program — to prevent a collapse of troubled automakers.
“A precipitous collapse of this industry would have a severe impact on our economy, and it would be irresponsible to further weaken and destabilize our economy at this time.”
- New Congress will have less Republicans...so it will probably pass thenukit
- chossy0
It's not got much to do with the quality of the cars made, if this was the case there would have been no car industry in America to begin with. Troubles lie where people no longer want to buy a new truck or whatever every couple of years. Which is what a huge amount of the auto economy was based on. Like your mobile phones getting the newer model every couple of years or so.
I personally would never buy a new car, and would never spend more than £3000 on a car.
- ukit0
The original "bailout" failed too. I suspect this one will go through, once they figure out what concessions the Republicans want.
- The Republicans want to pay management and screw the workers.TheBlueOne
- sputnik20
and foreign car companies have been making cars on US soil for a long time now, very successfully and without unions. maybe GM should take notes.
- It's as much managements fault as it is the UAW.TheBlueOne
- truesputnik2
- I'm not necessarily anti-union in general, but the UAW is terrible.TheBlueOne
- foreign car companies don't have to pay for years of pensions from the start of car making...AMERICAN car making. Of course they don't have a problem.tedismyfav
- of course they don't have a problem, they're babies compared to the resttedismyfav
- roundabout0
The only decent car brand America have left are Ford. Why should they get a bail out, GM, Chrysler have been designing cars for the US market, and then thought they could use the same crap for the rest of the world without a redesign. Yeah, there shit, and yeah, you failed.
- philipdrumman0
- Such a great set up, but image linkage fail, mach 1!ian
- in future we wont have links! sausage links at bestphilipdrumman
- I had so much hope.TheBlueOne
- Mimio0
Yes... bully for Paulson on that. I'm so glad we blow $9 billion a month in Iraq.
- TheBlueOne0
I'm sooo glad bailing out the banks freed up the credit markets.
That was total win,
- Mimio0
Get ready to double that unemployment number to 4 million people.
- sputnik20
bailing them out would have been a bandaid on a much larger issue. hopefully they'll start making cars which people will actually want to buy. that being said, i really feel for the people losing their jobs.
- exactly. plus GM employees get $71/hr and US Honda get $45/hr. Fuck GM, they're moronssection_014
- That's all changing with the buyouts of the union guys though. The salaries are more realistic now.Mimio
- yep, it's all union issues. they're outtdated and have hurt the industry terribly.sputnik2
- TheBlueOne0
*cough, cough
"General Motors and Chrysler, for example, owe their suppliers a total of roughly $10 billion for parts that have been delivered. G.M. has held off paying them for weeks, and Chrysler is paying in small increments. But the cash shortages at G.M. and Chrysler are getting more severe, according to their top executives and other officials....
Many of their suppliers are teetering on the verge of bankruptcy themselves, and do not have the luxury of extending credit much longer.
“I don’t think that suppliers will be able to get through the month without continued payments on their receivables,” said Neil De Koker, chief executive of the Original Equipment Suppliers Association in Troy, Mich., a trade group.
When suppliers big and small start failing, the flow of parts to every automaker in the country will be disrupted because as suppliers typically sell their products to both American and foreign brands with plants in the United States."
http://www.nytimes.com/2008/12/1…
More businesses fail, more people out of work, more people not paying their bills & mortgages. Wash, rise, repeat.
To quote Han Solo, I have a bad feeling about this.
- But thank god, those Wall street execs got bailed out! Phew!TheBlueOne
- http://www.reuters.c…TheBlueOne
- Right, where's the same outrage over the Wall Street bailout?Mimio
- Japanese automakers use many of the same suppliers...so not really good for them either.monkeyshine
- 3030
here is special offer:
http://www.mysuburbanlife.com/br…
- 23kon0
is waiting till jan/feb to buy a new car - they will be GIVING THEM AWAY by then!
:)
- haha, nice plan but i doubt it.anxiousarms
- Actually a car dealership around here is doing a "buy a new car, get a FREE used car" deal. Blew me away.dMullins
- janne760
it's the companies own responsibility imho.
do not reward bad management with tax money.won't happen to me either.
- 3030
@doesnotexist: if you own one of these (mustang, camaro, challenger) you don't care about fuel consumption, otherwise you can't afford it.
If you can afford expensive sports car, you don't how thirsty is the engine ;)
- exactly my point, they're shit carsdoesnotexist
- it's bad business and bad for the economydoesnotexist
- the english is just appalling in that post.chossy
- dog_opus0
Amen. This carte blanche with our money to subsidize the prolongation of sinking ships is absurd. These people can thank the UAW, who can probably count on Senator Obama to push this foolhardy endeavor through once he takes office.
- You're about to feel the onrushing effects of the Free Market. Strap yourself in.TheBlueOne
- Frosty_spl0
They get poor mileage because of all the hippies that sue when little sally dies in an accident, because there aren't 20 airbags to protect her. New cars are much safer than 10 years ago, they aren't tin cans anymore.
- True. I read there is as much as 600lbs of safety related weight in some vehicles.ETM
- thebottlerocket0
They probably should fail, but maybe let them fail slowly over the next 4-5 years.