Should Congress Bail Out The Auto Industry?
21 Responses to “ Should Congress Bail Out The Auto Industry?”
21 Responses to “ Should Congress Bail Out The Auto Industry?”
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Honda, Toyota for example ARE AMERICAN COMPANIES. They are made in America and American’s work there. duh. You can’t blame them for having a great product and supporting American’s-come on! Why can’t Ford, GM make a reliable vehicle like Toyota or Honda?? They can’t and they never will be able to do that….history has proved that. No to the bail out!
Absolutely NOT! Lets say you owned a business and it was in trouble. But yet, you take a 9 million dollar annual salary. Wouldn’t it be proper business ethics to give some of it up to keep your business afloat? Or is it just easier to have your hand out?
These companies have known for years they were operating way over their heads in the red. Building cars and trucks with terrible mileage and continuing to flood the market with them.
Bail them out??? Not on my pocketbook.
I don’t get it– 700 Billion to bail out the biggest bunch of thieves and liars since the Great Depression and nary a flutter of dissent (all while thousands of Ohioans lose their homes to foreclosure– and I’m talking about people with jobs, not people who should never have been approved for a loan to begin with)?
Yet no one wants to help “Joe the Machinist” up in Detroit keep his job? Do you have any idea how many Ohio jobs are directly related to the auto industry? All they want is $25 Billion, but the ripple effect from that will preserve American jobs across the country.
Meanwhile, those jerks on Wall Street and at AIG just drew their bonus checks, and will enjoy lavish “corporate retreats” and be chauffeured to work in private cars: because they *know* what’s best for the American people and the economy.
Those fat cats give Americans the protection that vultures give to lambs.
Bailing out the auto industry is ESSENTIAL; to heck with the Financial Companies. They’ve had a free ride for far too long– and if you think for a split second that they’ll “give back” to America, you’re crazy as a loon. Those guys are looser than a playground swing: as long as it’s YOUR money, OUR money, AMERICA’S money– not theirs.
Nancy-
well since your using the internet i doubt you have cut your own spending that much. since when has the internet become a necessity. we lived without it too. maybe you should cut your service.
Well, there’s some heartening news. Congress wants a business plan from the automakers.
http://news.yahoo.com/s/ap/congress_autos
What are the chances Congress would actually recognize a good business plan if it bit them on the butt and, if they did, what are the chances they would actually hold the companies to the plan?
Did anyone catch any of the Congressional hearings where the CEO’s of Ford, GM & Chrysler were asked if they flew commercial flights to Washington D.C. or if they flew in on their private jets? They all flew on private jets and when asked if any were planning on getting rid of them not one of them said yes (although one of them said we don’t own any jets, we just lease them).
I don’t know about you, but we are having to tighten our belts and adjust our spending habits; why shouldn’t they have to do the same?
If we give them that money it will be just more of the same old same old. They are in the trouble they are in due to mismanagement at the top and greed throughout the company.
Again, let them file for bankruptcy and restructure. Maybe then they will accept some ownership of the problems they are having and straighten up and fly right!
No, until the Auto Industry builds something Americans want to buy, let them figure out a way to get out of this themselves………no more government money.
The demand for autos isn’t going to diminish. The remaining companies will have to produce more cars. Which means thay will need more workers and larger facilities. People with experience would be at the top of the hiring list. They may have to adjust their standard of living a bit, but we won’t have millions unemployed.
Some thing to think about: Two months of what we are putting into Iraq will help our auto Industries. How many jobs will be effected if they fail. Three hundred billion into the financial markets with no oversight, and we are saying to the auto industries you have to get rid of the unions to get any help. That is what the holdup is all about. Has anyone noticed the large Toyoto’s and Nisan’s on the lots. Take a look and you will find that there are as many large models in all brands. I would bet we wouldn’t be in the shape were in if there were regulations in the oil speculators that allowed the price of gas to drive the prices of everything through the roof and our economy into the tank. Just got through reading the book on the fall of Enron and what wall street is doing now is the same.
If we have any intention at all of bailing them out, we need to attach strings to the “loan.” They should be required to submit, in writing, how they intend to use the money to improve their businesses.
Personally, I feel they should file bankruptcy and be forced to restructure. I feel we are just throwing good money after bad. They haven’t been able to sucessfully manage their money and companies thus far; what makes anyone think another $25 million each is going to do the trick? It’s just postponing the inevitable. Unless, of course, we plan to throw them $25 million each every 6 months or so.
I think we need tobail them out. If not it would mean over three million jobs lost in a matter of months. Then we have 3 million people go on unemployment, then on welfare. Thats surely not going to help the economy. The only people that will benifit that is Honda, Toyota.
We need to look at this from a different angle. It’s all about money and numbers so let’s keep it that way.
3.57%…. This is the percentage of the $700,000,000 bailout that the auto industry is asking for. Are you kidding? Give it to them! If it will keep the auto industry afloat, then just help them out. The auto industry is a major industry in America. We can’t afford for them to go under. Cars are an eveyday necessity for the most part. We can’t let foreign markets dictate the prices of our cars. It makes no sense for us as an economy.
$10,000,000,000… That is the number National debt that this nation is approaching because of bad spending habits and misappropriated funds. I’ve seen news reports of bad spending. Our government has spent $300 on a hammer before. I’ve seen the invoice on a news special on ABC before. I tell you that hammer better have been indestructible and made of some space metal that we’ve never heard of. I’ve never spent more than $30 on a hammer.
$168,000,000… This is the amount money that should not be awarded in another economic stimulus package. Does anyone remember what happened last time? Sure, the money was nice to have, but it’s sending our economy further into a recession. It will become increasingly harder to recover from. Few people went out and just spent that money on consumer items which would’ve boosted the economy a little. They used most of it to pay off some bills which is a smart thing to do individually. We need an accountant to be in a position of power to manage funds. The FED chairman doesn’t seem to have a clue about what’s going on and the treasury department is doing a “spectacular” job. Our dollar is worth less and less everyday. Ever since Alan Greenspan retired, the economy is going in the trash. I say bring him back.
Not just no, but hell no, to any bailout of any industry. It’s contrary to the idea that the free market provides the best service/product for the least amount. We all know that saying that if you reward bad behaviour, you only get more of it. Besides, the money doesn’t exist so it’ll be borrowed from the Chineese or printed out of thin air adding to an already deflated dollar. (see http://www.lewrockwell.com/paul/paul484.html)
Toyota, Hyundai, Mercedes, Honda, BMW, and Nissan have flurished in the U.S. They feel the affect of the worldwide economy like everyone else but they can weather it. Foreign manufacturers were smart enough not to locate in the northeast and midwest where there’s a deeply entrenched union mentality and there’s not the level of confiscatory taxation by local and state governments.
One other thing is that companies like Toyota have a long history of championing process improvement (lean manufacturing) and process stability (six sigma). Those lofty & theoretical notions were developed by an American (Arthur Demming) but scoffed at by the the big 3 and a whole bunch of American companies that ain’t around anymore. U.S. manufacturers have only recently embraced them.
No, the big 3 deserve to fail and I for one will not shed a tear.
Several economists say a bailout will just prolong the agony. They say the auto industry is doomed. It just goes to show you can’t pay assembly line workers sixty dollars per hour when the foreign car manufacturers in the US are paying twenty. The unions have “negotiated” these people right out of a job.
I said several months ago that if we bail out the banks and the financial industry, Detroit would be next in line. The bigger question is, where does government draw the line? If we bailout one industry, we have to bail them all out for the sake of fairness. Otherwise the government is literally picking winners & losers in our capitalistic society and economy.
I think the big 3 are a victim of their circumstances. At least as much a victim as the rest of us are. Instead of just handing money to the big 3, give them a bridge loan to help them out until 2010, when the UAW picks up full responsibility of member’s retirement benefits & health care. That alone will take a huge load off the automakers and should make them solvent. If the big 3 fail after the loans, then we the taxpayers get first dibs and the rights to liquidate their assets to recover our losses.
no .unless the ceo’s forgo bonuses, all top brass should not be given bonus for puttting company in the red. how can we keep paying upper level idiots for running a company into the ground . chrysler top man 2.5 miilon base plus stock options, performance bonus + vacations,car ,home an other allowances? sonds a little like a politican. to me they are all sharing the blame in our present situation.
why did they give tax breaks to move out of country? now they are trying to figure out what happened? I worked in parts manufacturing last 20 years, we made parts for “THE BIG THREE”
we were told where an from who to buy our parts to make theirs. most all were CHINA, JAPAN,OR SOUTH AMERICA. Even though we could get them here at a lower price. an they wonder what has happened to the” AMERICAN WORKER”? He was sold out for the almigthy
dollar. while the top DOGS reaped big payouts when a company they were trusted to run went down the tubes SO NO TO THEM UNLESS THEY ALL FOR GO BONUES TIME !!!!!!!!!
The comment about foreigners taking over the country by way of automobile manufacturing is the most ignorant comment I have ever heard.
I sell ergonomic equipment to automotive manufactures, both american and japanese, and most parts that are assembled into a japanese car are american built. Honda supports and provides jobs in every corner of Ohio just like the “Big 3″ but they do it in a way that is not wasteful or bad business. The money that the “Big 3″ waste per year is outrageous and it has finally caught up to them.
A workers hourly cost to the “Big 3″ is around 70 dollars and Honda’s hourly wage for their workers is 50 dollars. Honda produces better built and longer lasting cars than the “Big 3″ for less than it cost American auto manufactures.
Help American automotive manufactures out of a bind because they didn’t think to run a smart business? Next time I spend all my money eating out at resturants and gambling and my electric gets shut off, I’ll come to Russ to help bail me out.
YES! We need to make sure the foreigners don’t take over making all the cars. If them foreigners take over then eventually all the cars on the road will have tracking devices in them that will allow foreign governments the ability to track the movement of US citizens and to help them in the next time they decide to attack. We need American cars to protect us from losing our country to foreigners and other terrorist organizations.
tara,
two things. One Saturn is apart of GM. Two neither hyundai of Honda are AMERICAN COMPANIES.
with 3 million jobs tied directly to the car industries. and millions more affected if the big 3 failed. there is this crazy basic economic theory that exists. it is called a multiplyer effect. the more money being spent the more jobs people can have- in its simplest form.
Take a family supported by GM and his 50,000 a year job. If he loses his job he cant pay for housing, food, cable, internet, gas, heat, electric and most importantly he doesn pay taxes. while we all hate taxes. tax revenue pays teachers, road workers, pays for contractors to build things ect.
We have to look at the big picture. If the government doesnt do anything the countries economy will fail. the big problem with the great depression is that we waited to long to implement solid programs to help us. the result was a deep depression.
It is not that the bailout should be automatic. But it should be done in a way that will help them get back on their feet.
Are they crazy?? All they need to do is have a talk with Nissan and find out how they come to this counrty and make cars and a profit,
I am totally againest any automotive bailouts! The 25 billion is on top of what they are getting to achieve switching over to more greener fuel options, like flex fuel. Consider this- our country is based on competition in the markets, and the strong to survive. Our government hands out a pile of cash to the automakers- specifically Chrysler, GM, and Ford, so they can keep their doors open- FOR WHAT?? So they can keep producing inventory that can’t be moved that worsens the balance of SUPPLY and little demand? You are just prolonging the inevitable. So yes let one of them fall, let the balance reset and the ones surviving will begin to flourish and in turn they will take up the hiring of employees who lost their job with the fallen. I fear that a bailout will worsen our economy, and set us up just as the housing market catastrophy. One of the critical reasons for our housing situation is not just foreclosures, predatory lending, and lack of cash flow, but the fact that the new home builders couldn’t keep up in 2006 (the highest recorded year in home sales in history) They now have an over abundance of new home inventory they can’t move, and to compensate for it they are selling well below ‘what used to be’ their market values, turning little if any profit. Besides I don’t hear Saturn, Honda, or Hyundai screaming for help- Sounds like possible ill guided/managed companies should be the next issue. I know this isn’t the first time GM or Chrysler has had it’s battles, they both have historically struggled on keeping factories/plants open since I can remember.