The Senate ducks again, or they trying to kill the auto industry?

@iriscot (1290)
United States
December 14, 2008 5:39pm CST
ABC News: December 12, Senate Bails on Auto Bailout: What Next? White House may reconsider using TARP money to prevent industry collapse. The White House said today it would be "irresponsible" to let Detroit's automakers collapse and suggested it will use a bailout fund it had previously said was not meant for the sinking car industry. Hmmmmmmmm... I wonder if they will all continue to stall or take action?
1 person likes this
3 responses
• United States
15 Dec 08
Also remember that it is not the Senates job to kill or save the Auto Industry. They have ways that they can kill it with taxation and regulation, but the Auto industry and the UAW seem to be doing a fine job of that by themselves. So not taking action is not killing the auto industry, it is simply forcing them to work out their private business the same way all of the other private businesses in the country do.
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@iriscot (1290)
• United States
15 Dec 08
You make a good point there and I think that most observers realize the union has hindered the profits of the companies, and the auto makers wanted to sell the SUVs and big trucks to make more profit. As soon as a unit is started on the assembly line the beginning cost is about $2000 in wage benefits such as insurance and retirement benefits. Some of this is going to have to change and be pared down. So why didn't the auto manufacturer build the lower priced units instead of the expensive ones? It's easy to understand when you look at the $2000 figure. They will have to prove that they can build the cars and trucks that the majority of the public wants, including hybrids and electric units.
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• United States
15 Dec 08
The good news is that hybrids are stinking expensive, but I would guess that most of that is due to retooling costs and once they get production underway, the per unit cost will be pretty simular. That is just a guess, but it makes sense in my mind
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• United States
15 Dec 08
THis is a huge...."I don't want to be responsible for this, so you do it" thing. Congress does not want to bail them out because most of the population is against it but then they do not want to be blamed for putting a couple of million people out of work. So they are trying to skirt making a decision at all and make the president make the decision (so he can be blamed for it). To which the president tells them it is their job to make the decision. He is right. It is congresses job to make the decision. They are just too much of a weeny to do it. They need to just go ahead and do the jobs we pay them for. Either do the bail out or not....just actually make the decision.
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@iriscot (1290)
• United States
15 Dec 08
I believe you are right lilwonder, they are going to pass the buck until January 20 and let the new president worry about it. We have to realize that there are Toyota, Nissan, Mercede Benz and BMW plants in the southern states who have republican senators that want the american auto companies to suffer, it will get more money poured into their re-election funds if they can force the american companies into chapter 11. It's easy to see that when they are interviewed. So, there is no way that we can tell what will happen to the workers who will lose their jobs. I see now that the housing crisis is going to get worse over the next couple of years and they will need another bail out. There's going to have to be some regulator who will put a stop to the mess we are in. Thank heaven we own our home and have no mortgage.
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@anniepa (27242)
• United States
18 Dec 08
What bothers me the most is the double standard some seem to have for Wall Street as compared to the blue collar workers in the auto industry. Here is a memo circulated by a Republican lobbyist: "This is the Democrats’ first opportunity to pay off organized labor after the election ... a precursor to card check and other items. Republicans should stand firm and take their first shot against organized labor, instead of taking their first blow from it." http://news.yahoo.com/s/politico/20081213/pl_politico/16545 The UAW isn't perfect and should be willing to make concessions but the GOP's goal is, as it's always been, to bust all unions. Annie
@iriscot (1290)
• United States
18 Dec 08
I agree annie they have a deep interest in busting the unions. However unions have gone a bit overboard with their demands from the auto manufacturers. And, I'm sure they will have to pare them down before all of this mess washes out. I guess everyone here heard that Chrysler is shutting down all 30 of their plants for a month instead of the usual 2 weeks. This will help some with wages but won't do enough to save the company. Maybe they are just trying to show congress that they are doing something. This great country of ours was in a similar shape during the depression. Here in our community the bankers were buying businesses and farms for pennies on the dollar, and if the regulators (if we have any) let this happen again, we are going to be in very sad shape. My grandfather was the first mechanic in our county and owned a very successful Chrysler, Dodge, Desota, Plymouth dealership. My mother said that he worked very hard to get where he was and that the family was doing great financially. Then the market went belly up, business dried up and bankers called in all mortgages and notes. There was no more financing for home buyers or car buyers. My grandfather's business closed and all he had left was his tools. One banker in our town ended up with 7 farms and the ford dealership, so the wealthy got wealthier and the other citizens suffered heavily. I think everyone here has heard or read about "Hooverville" that was set up by WWI veterans and others in front of the United States White House and Capital. People were on street corners trying to sell their cars to feed their families and many were selling whatever they could get their hands on including apples just to feed their families. So I don't know what all of the workers will do if the auto companies fold, they probably, unknowingly brought a lot of the problems upon themselves. I still see foreign built cars in the automaker factory parking lots. Why don't they try and help the hand that feeds them, there seems to be no loyalty towards the company that provides the paycheck. It's just as bad as baseball, football, basketball and other sports, they go where the big money is and to hell with the team that brought them up out of the minors. Don't forget at least 3 republicans in congress have foreign auto makers in their states and they are just looking out for themselves, McConnal and Shelby are the worst. Large donations from Toyota, Mercedes Benz, Nissan and the rest will fatten their wallet for the next election.
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@anniepa (27242)
• United States
18 Dec 08
You're so right about the Republicans in the Senate. I mean, I'm not faulting them for looking out for their own states, that's who elected them, but it's clear it would benefit them and their constituents greatly not to mention filling their coffers with donations from the foreign auto makers if the Big 3 all went belly-up. I just think like with almost everything else there needs to be a middle ground. I know the UAW workers have long been thought to be "over-paid" although I've seen lately how some of the figures those against the union give for their wages are exaggerated. Regardless of that and no matter who is correct about how much their wages and benefits actually add up to, concessions and compromise have to be made. However, allowing the unions or even this particular union to be "busted" is a road the working people of this country will regret going down. I know union members who are pretty hard on the UAW and rightly so because as a long time union member myself I know I never received anything close to what they get. However, if the anti-union crowd succeeds in busting the unions who wills stand up for the working person against corporate and management greed and arrogance which is worse than ever before? It's not only about fair wages and benefits but it's also about safety and about unfair labor practices where management does manage to get around discrimination laws when it comes to hiring and firing, etc. not to mention harassment and bullying. Annie Annie