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The Big Three Want Big Bucks from Congress
Published by Pamela Gentry on Wednesday, December 3, 2008 at 2:19 pm.By Pamela Gentry, Senior Political Producer
Dec. 3, 2008 – The plight of the U.S. automakers could be left to Congress. Not the best scenario for the American ideals of free enterprise and capitalism, but the big three automakers are now in the need of a bailout, which appears to be the only option for survival.
But a bailout won’t be easy. President Bush and Democratic Party leaders are in a stalemate over what should be done. Republicans believe the automakers should file bankruptcy and reorganize, while Democrats think tax dollars can should only be used as bridge loans while companies reorganize under bankruptcy laws, cut costs and re-tool plants to build more fuel-efficient cars.
But lofty ideals require time the automakers don’t have.
One Black lawmaker from the Motor City, Rep. John Conyers (D-Mich.), weighed in following the presentations of options by the automakers that appeared to be filled with gloom and doom.
Conyers wants the new administration to elevate United Auto Workers President Ron Gettelfinger into the position of “auto czar.”
“Over the last month, there has been much discussion about the need for a strong central figure to oversee the dramatic changes being undertaken by the auto industry. It is my belief that a Cabinet-level ‘auto czar’ would provide this type of leadership and help President Obama successfully coordinate his administration’s efforts on behalf of the industry,” Conyers said.
I’m not sure a czar is what’s needed, but it’s clear the industry needs some un-divided attention to get back in gear. As for czars, they usually make headlines, and not policy, so how do they really help?
“If the Congress and auto industry strike a ‘grand bargain’ aimed at improving the industry’s efficiency and innovative capacity, America’s public and private sectors will have to work together on a variety of fronts. The complexity inherent in reforming firms with extensive and interconnected labor, legal, and financial agreements will most certainly be daunting,” Conyers contends.
Speaker of the House Rep. Nancy Pelosi agrees with the severity of the issues facing the industry, but she told reporters on Tuesday, “I think it’s pretty clear that bankruptcy is not an option,” and that she may call for another lame-duck session to deal with the crisis.
“I believe that an intervention will happen, either legislatively or by the administration,” Pelosi said.
The automakers made their case to Congress while in Washington. General Motors Corp. asked for $18 billion along with $12 billion in loans and a $6 billion line of credit. Chrysler asked for $7 billion before the end of 2008 and Ford Motor Company requested a $9 billion line of credit.
Michigan Sen. Carl Levin (D) said he thinks things can come together to get a deal on paper for the automakers. “If this thing is going to happen next week, it’s going to happen with the support and assistance of the current president and the president-elect,” Levin said.
With the number of jobs on the line throughout the United States and the number of small businesses depending on the successes of the automotive industry, Congress will have to do something. We’ll just have to wait and see what they decide to do.
Do you think tax dollars should be used to help the struggling automakers?
I just stopped by your blog and thought I would say hello. I like your site design. Looking forward to reading more down the road.
Letting the auomakers go to hell in a handbasket will have a ripple effect that will cause a depression.I don’t think anybody is for a bailout but it is good for the entire country if they get the help they need.
Look, this automotive industry is getting out of hand. The crisis they’re going through is good for them. There are so many americans out there without transportation. Why, its either because the sales person throw’s this card in the buyers face “oh, i’m sorry you have bad credit, or better yet you don’t have any credit.” This right here is a good one, “well since you don’t have good credit or any credit, if you really want to purchase this vehicle you need a really strong co-signer.” I mean c’mon now. There are families out there who have 3 or more kids who need transportation to bring their kids to school. I look at it like this if you have a job, you have a ride. These dealers should be willing to work with americans and give them a payment that they can make every month according to how much they make at work. Its bad enough that the economy is going through a crisis of so many americans being un-employeed. This should be the best way for a buyer to purchase an automobile. First, give them a payment according to how much they make a month (including insurance). Second, if the purchaser doesn’t have a job, then tell them to put a down payment of @ least $1,000 but if they have more to put down then that’s even better. Those two reasons right there should be eligible for us americans, especially for those who are un-employeed. I can’t wait until this thursday to hear what their plan is to get this bailout. And if its not good enough then the hole that they’re in is going to get deeper and deeper.
I’m too many things at the same time,automakers it should read.
yaaaaaaaaaay!!!!!!!
I don’t think they should bail them out. They put themselves in this situation over 10 years ago. When they should have been making automobiles that require less gas mileage. Now everyone is buying foreign cars b/c they save on gas and now the BIG 3 are going down. If they bail them out they will continue to make cars that are gas gussers & years from now they will be asking for another bail out. They should give them enough money to have some type of new platform that will make them build cars that save gas & money for everyone.
Mitt Romney said it best when he stated that they need to file bankrupcy a restructure their business. Currently, they cannot compete with the likes of Toyota. They should break the Unions and lower their COB.
NO.
No,no ,no.
No, no ,no, no,no.
They got them selfs init lot them get there selfs out of it.
NNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO.
Has anyone ever read Atlas Shrugged? The story line is starting to play out in all this. If they keep propping up these companies that need to die you will see something far worse than a depression.
Well you all have to look at it very closely! “IF” they do not bail out the automakers than we all shuld get ready for a depression. Have you all (who said no on the bail out) know how much they are worth. Millions of people work for automakers MILLIONS not thousands and factually we (America) can’t afford to lose over 25 million jobs. The overnment has to bail EVERYONE out due to the fact that they bailed numerous other company’s in the past months. Plus you have to look at what they (the media) are not telling you. Don’t read this article and think it is all true or look at CNN or Fox and base you predictions on that. No one other that the Senate, President, and pres-elect and his team knows what is going on. Bottom line is that they are going to have to bail them out. PLUS this is also a plot of the Bush administration and republicans to make Pres-elect Obama look bad. They all know what he is going to do so they (Bush administration and republicans) lowered gas UNTIL Obama gets in office Jan 20, 2009. After he gets in office watch gas prices increase and the far right to say at the end of the quarter how bad he is running our country BUT I believe Obama (with the team he has) is ready for any type of set-up the far right throws at him and his team!
GO OBAMA!!!!!!!!
And like I said eight months ago and I will say it again money will be turned into credits very soon (If we don’t get “new money”) due to the bailouts. Watch