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Oh boy… Bailout-Mania™ continues at a steady pace..
Posted by Duncan on December 19th, 2008
Looks like Bush is going to “save” the Big Three for a few more months by giving them some money from the TARP. And I am so excited to see it. (/sarcasm)
Also, if I hear another CEO from the automotive industry, or from the UAW, spout forth from their greedy pie-holes another statement that sounds like “We’re committed to creating quality products and vehicles that are fuel-efficient and green” I will vomit. How about we get cars THAT PEOPLE WANT TO BUY! Ones that are of better quality and value than the foreign cars MADE HERE IN AMERICA! Bah. This reminds me of Atlas Shrugged again, where the government comes in and helps companies stay afloat, and producing jobs, that couldn’t compete with those who were working hard and taking care of business.
I have this nagging feeling that despite our governments valiant attempts attempts to rearrange the deck chairs on the Titanic, things will continue to correct themselves, however painfully. Such are the consequences of these attempts at government meddling/central planning.
UPDATE: Also, it turns out that this move to bailout the Big 3 with TARP money is either illegal or unconstitutional. But nevermind, it has never stop the Federal Government before….
December 19th, 2008 at 4:57 pm
I love hearing so many talking heads on TV telling us that this will help them sell cars, because no one wanted to buy them. But, GM sold as many as Toyota, yet, Toyota made 17 billion, GM lost around 38 billion, selling the same amount of cars.
December 20th, 2008 at 2:37 am
Ford got a bailout? I thought they didn’t…
I just read some sap story about how the deal is set up so Obama can change the terms, ofcourse. One of the terms relates to the Unions and what they must do in order to keep the loans from coming due, fast. Pfft. I already know the unions are not going to sacrifice one penny- Obama will make sure of it. Spoiled rotten auto workers…I never take away people’s sense of work ethic and earning power; but I do take issue with the wages these unskilled laborers earn, when MY tax bucks are paying them. This bailout does it for me. I will never buy an American vehicle again. Yep…I’m screwing over Americans. Oh wait..no I am not because my next rig will be a Toyota, built in the US by non union American citizen workers.
Screw Detroit. Until the union gives it ALL up and allows competitiveness, I am done with the so called Big Three.
December 20th, 2008 at 9:50 am
As I read this piece, all around me blared the advertising for various companies and organizations advocating a stronger America, yet the bottom line of the article is that America should let the base of our military vehicle production capacity be turned over to Japan or Germany, because that’s what is likely to happen if the American auto industry fails.
Aside from national security, a lot of other important issues are being overlooked in the debate about providing financial help for the American auto industry: Most of the other international automakers are seeking similar assistance from their respective countries. This is not an problem specific to American automakers. And as to being out of step with consumers. The problem was that they were in step with American consumers until gas went to $4.00 a gallon. Consumers turned on a dime at that point, but you can’t expect the automakers to be able to do the same.
With a few notable exceptions, many of the world’s automakers are looking for bailouts.
Furthermore, if we turn our back on those who need help now, it is quite likely that even the strong ones will find themselves in financial hot water. An inside source from within the auto industry predicts that one company that is not in any financial trouble itself expects to lose nearly 20% of their dealers in the next year because of the lack of available credit to finance floor plans (the terms for the cars on the lot). This shock could place even this automaker in jeopardy needlessly.
Among all of them domestic and international alike, GM is getting a bad rap on the issue of planning for an industry with a better selection of energy efficient cars and trucks. Compared with Toyota they may be behind but with respect to most automakers GM has a very promising lineup of green vehicles including a hydrogen car and the Volt, a plug-in hybrid that could revolutionize short distance driving in the near term and with some additional R&D play a significant part in reducing our dependence on oil.
December 20th, 2008 at 12:27 pm
Raven,
You are correct, Ford did not get a piece of this pie, so I was incorrect to say that the “Big Three” were getting a bailout. I personally will only buy a Jeep product if and when I buy a new vehicle, because I think those are the only American product that holds a candle to the foreign automakers.
Wayne,
No one is saying that losing the Big Three will be a good thing for America. What I think we are saying is letting the Big Three continue with a business model, which includes UAW tapeworms sucking out the nutrition that could keep the companies alive, parasites if you will, that do more harm than good. And I believe Ford actually has a turbo-diesel vehicle, similar to the Volkswagen Jetta TDI, that gets 45-50 miles per gallon, but it is not sold in America due to our emission standards. I’d actually consider buying that vehicle, a domestic turbo-diesel, if it was available here in the states. And it is all fine and dandy that GM is making “green” vehicles, but until they don’t cost an arm/leg to purchase, and are as expensive as regular internal combustion engines, I don’t need Congress and the POTUS forcing them down our collective throats…
December 20th, 2008 at 6:27 pm
Wayne, the green vehicles are like rabid mice to the unions. They oppose any form of this. Because it might cause their work rules to change. The industry itself fights the mandate of these cars- perhaps with good reason: NO ONE WILL BUY THEM! When no one buys your product, you don’t make money! When you don’t make money- you stop spending it!
Here’s a propaganda piece if I ever saw one, from CNN, on this bailout and what’s expected from the unions:
http://money.cnn.com/2008/12/19/autos/auto_bailout_labor_issues/index.htm?cnn=yes