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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?
its between the devil and the deep blue sea.. there is no choice in the matter, let them drown then an entire economy will go down the black hole with them.. this is not the time to be talking of letting the banks and the car industries sink by themselves… because everyone will sink with them..
obama hits the ground running and i think is more than a match for the far right who just had the wind taken out of them .!! they will be back afterall, its a 52% to 46% voter turnout… so its not that they dont have a substantial platform to work with … 46% of americans are still stupid..expect sarah palin to be their nominee come 2012.. and if obama doesnt get to grips with the economy by then, expect them to come back to wreck even more havoc than before…
A bailout should not be permitted without a legitimate plan.
We need to see projections and legitimate strategies of how the bailout will work. If the banks are refusing to bail you out why should the tax payers, we can’t afford to just give the auto’s companies billions of dollar’s.
We should also revisit NAFTA ,your asking american’s to bail you out,
but yet, you sold out the american auto workers and you gave away people jobs who’s been working 25 to 35 years to Mexico and Canada.
I know President Obama will look into restructuring NAFTA, he mention
he would. We need also to look into the our trade situation with Japan,
Japan is allowed to sell all their automobiles in America but were
not allow to sell our auto’s to them that’s crazy….
Olouwana (aka) sha- nea- nea why do you keep pretending your from
another country and why do you involve yourself so deeply in our culture, if
you were from another country? Your comments are getting old with the
same old retoric, but I understand you want some attention and you want
to feel important ,because apparently you don’t get it from home, but you really do need to get a life , black lady from America…………….
olounwa is a black lady???
WTF…I thought olounwa was that OLD drunk african dude chillin down at Smitty’s bar every day on a cheap laptop drinkin crown royal.
mad max;
That’s to funny you got me cracking up, I never thought about that.
hahahahah lololohaha ….
I want to see the d.a.m.n congress under oath for bankrupting social security and mismanaging out tax dollars.
If I am right with the team Obama has he should get this economy turned around by the end of next year. BUT they can’t clash and they have to understand that Obama is the decision maker in which I am aware that they all know that.
Obama isn’t getting this economy turned around.
I’m sorry. Nothing I have seen of him gives me confidents that he knows what to do. Cases in point, when asked about taxing the rich people, el presidente-elect stuttered and dodge the question by reciting a campaign flyer.
He’s basically the spokesman for the Democratic Party and the Clintons will run the show.
Alex
Bush is still President,it’s still his watch so why isn’t he turning the economy around ? Oh that’s right,he only bails out the fat cats on wall street.
It would be a economic disaster for the entire nation if congress does not come to the rescue of the big three automakers.The ripple effects of letting them go under will be a depression. Seems that some people don’t understand
that many, many types of companies are very inter-connected that millions of people will be out of work.
Sorry Alex…. your wrong. I don’t think you’re aware of the power, experiance, ingenuity, and well respect cabnet in the history. You really need to d your research on his cabinet and look at their record. With the team he has he can get this economy turned around. Remember he is NOT president of the United States yet. What do you want him to do? He is doing everything he can and the far right are setting Obama up with decreasing gas until he takes office and is going to increase it when he takes office to make him look bad! You can’t judge a book by its cover and you have to form your own opinion by looking at what the media is not telling you.
One more point Alex. It would be STUPID of Obama to give his tax plans right now he’s not in office yet wait a few more weeks until he is president please. He’s a VERY clever individual that knows how to communicate well and give answers that doesn’t give his plans away
hello!
I have traveled to Europe and Brazil for the last 15 years. I was always surprised to see the Ford, and GM cars there using alternative fuel sources. The GM and Ford cars ran on Ethanol, natural gas and the type of gas we use here in the USA. Brazil has been using alternative fuel in these cars for over 30 years. The Big three have no one to blame but themselves. They have been in bed with the oil companies for so long that they did not take care of business here at home and now the bottom is dropping out from under them because they failed to prepare for the current economic crisis.
We should not bail them out. I feel that they need to file bankrupcy, restructure and start over fresh building alternative fuel cars. If they want to borrow money, they should borrow it from the oil companies who have made record profits on our backs. Make them pay for their collective greed, not us!
Hear, Hear, Psychic Star I agree with you, you make a good point….
It appears that the big three are not the only ones who want big loot. Ill. Gov. Rod Blagojevich has been accused and arrested by the F.B.I. for trying too sell President Elect Obama’s senate seat.
OBAMA TALK RADIO….Hi Warriors. When you get a chance please listen to this week’s edition of ‘Nothing But The Truth with Greg Jones’. Topics: Obama’s Weekly Address…Michael Moore speaks out re: auto bailout…a look back at the Bush Regime…Michelle’s Family: from Slavery to the White House…and much more Obama Talk. NBTT airs LIVE ! every Sunday night 8pm (est) Join Us ! Listen/Call-In LIVE ! To listen to this week’s show just click below:
http://www.blogtalkradio.com/stations/HeadingLeft/The-Greg-Jones-Show/2008/12/08/Nothing-But-The-Truth-with-Greg-Jones
p.s. Luv what you do Pam !
Psychic Star you make a good point and that’s why you see more individuals with a lot of income (million and biliionares) moving out the U.S. to the new island that was built and to numerous other countries. BUT we have NO choice BUT to bail out the auto industry. YES they did it to themselves everyone knows that (so did those other company’s they bailed out) but do you want this country to go in a depression such as the 1930’s? I don’t know about all of you but I don’t. Not now. We all got to hope for the best the auto industry pays the salary of over 30 million U.S. citizens and losing that many jobs wouldn’t be good… I just hope and pray that it doesn’t hunt us in the long run because if it does it will be WORSE than the depression of the 1930’s. Blame Bush because if you bail one company out you got to bail them all out.
We do not need to be giving all this money to an industry that will not be able to make it anyways. The auto bailout is prolonging the inevitable.
There is not enough money out there to support everyboyd that comes to DC for a bailout. Our national debt is running out of control already.
Let those three companies fail and the other auto companies will definitely pick up where they left off. Seriously though, it may hurt Detroit but for those cities that have Toyota plants, Kia plants, and other auto plants, failure of the Big 3 will benefit them.
Patrick
letting the big 3 too fail will hurt more cities than Detroit. It seems that you are not aware of the fact that hundreds of firms are involved in the manufactoring of a car. As far as those non union foriegn owned automakers in the south,thats what the republicans want,it’s a union busting tactic. Infact the GOP killed the auto bailout bill because they wanted the average working man too give up some wages.No wonder the republicans took a ass wipping on Nov. 4.
jfffnn,
I agree with you. A lot of other companies depend on those big auto companies for their livelihood and there would be a serious negative financial ripple effect felt in those communities. However, I also don’t like the “bail out industry” mentality that has developed here lately.
Patrick N. Washington,
Welcome back. I missed your comments. I don’t always agree with you but I do like reading your view points. You stimulate intelligent debate and challenge minds. Plus you piss off certain folks. lol