"General Motors Bailout Hell No''

United States
November 12, 2008 11:25am CST
General Motors the most incompetent corporation in America in the last 25 years is asking the Federal Government for a bailout because, the auto industry is struggling. General Motors is asking the Federal for a bailout while, they are laying off American workers everyday and moving there plants overseas. Therefore, why can't General Motors and the other American auto makers make cars that can compete with the Japanese and other forgein auto makers. I don't feel the Federal should be bailing out every failed corpartion in America. To read more of this article go to www.herringpost.blogspot.com
2 people like this
11 responses
@xfahctor (14126)
• Lancaster, New Hampshire
12 Nov 08
http://www.thetruthaboutcars.com/gm-buys-russian-factory/ http://www.iht.com/articles/ap/2008/09/02/business/AS-India-GM-Plant.php http://www.gasgoo.com/auto-news/1007770/GM-begins-construction-of-250-mln-R-D-center-in-Shanghai.html Theres what your bailing out folks if money is directed to the auto industry. but uyou can complain all you want to congress, it will do no good, complain now to our new 4th branch of government,the treasury branch, wait, useless there, they have no constraints. Poulson came on today and announced plans are changing in the original plan. So much for oversight or strict control. I warned everyone this gave very few great power to do pretty much what they wanted and people pointed me to "oversight" and "safety catches".
1 person likes this
@cornyman (1128)
• Germany
18 Nov 08
What would have happened if the government wouldn't play the "Government Sachs"-Game with CEO Henry Paulson on top of them all? Instead of this they should have given each houseowner 10.000 US-$ purposely for paying down the housedebt. This could be managed by a special account in each bank, by application form the Treasury would hand out the money monthly to the banks who applied in the name of the houseowner in need. The next step is reducing the interest rate of these debts to an actual level + bonus means Fed rate + 0.5% for the next 2 or 3 years. More restrictions for the banks according securities for mortgages and high-leverage speculation. Results: The down payment would sink or the debt could be paid back earlier. Less risks for the banks for further loans. This would stop temporarily the foreclosure rate and the prices could stabilize for around a year. Banks would get most of their money for their mortgage loans, the CDOs could be sold to more normal prices because a market price would be given again. Banks would have less losses, Mergermania could go on with the help of the FED and the Treasury. What would happen to the Car makers? The payments for the cars could be made again on time, the car makers have less problems with financing again from the banks. The government has to make a bill with the purpose of reducing gallon/100 miles to 3 gallons over the next 5 years. Cars that use already less get a sponsoring of 3.000 US-$. Car maker get only subsidiaries for producing fuel-efficient cars within the US. Result: Oil price drop for some time and stabilizes. Less costs for consumer and companies. Environment is saved, personal health benefit in the long run because of less toxic waste from fuel. Car makers will survive or make Mega-Merger.
@iriscot (1290)
• United States
12 Nov 08
I was watching an economist this morning and he changed my opinion concerning bankruptsy. He believed that would be the best course, just let them go bankrupt and into receivership for restructuring. That would mean new management and a complete overhaul of the company. Maybe they shouldn't get a dime of the tax money, that would shake things up. Several years ago GM built an electric car and they leased the cars out to persons in California. The people loved the car and when GM started recalling them many of those people wanted to buy them. Due to pressure applied by oil companies and several of the large stock holders, GM gathered up all of the these nice new electric powered cars and crushed them. They used the excuse that the batteries weren't holding up, it seems there was a scientist who had developed a new battery system that would have tripled the mileage the cars could get on a charge, but GM ignored that. Now they are wanting to start over again and produce another version. They thought the public wanted to own a statis symbol such as big gas guzzling SUVs and Hummers. Now the dealerships are loaded with SUVs and are probably suffering from the interest charges they are paying to have them on their lots. If GM or any other company gets bailout money there needs to be several strings attached to the deal. NO more farming out the work overseas!!! Build the car that people really want!!! Pay back the money with interest when you are making money again. Quit trying to shove those gas guzzlers down our throat, we don't want them!!! Side note: Chrysler is shutting down their mini-van plant in St. Louis and I heard the plant in Canada will be taking over the production. More job losses for the U.S. worker. Ford did the same thing, so it isn't just GM that is in financial trouble, it's the whole automobile industry. I have two friends who own auto dealerships in our community and they walk the floor at night wondering how they will make payroll the next week. The banks are just about to shut them off. Should each auto dealer have to suffer, just because the big boys screwed up? Those SUVs and big pickup trucks are just sitting there and I guess they will be a pile of rust one of these days. It's going to be very interesting to see what happens.
1 person likes this
• United States
12 Nov 08
My exact feeling. The big three auto makers have had their chance to beat out their foreign competitors. For the last 30 plus years they continued to go down the same old path. Instead, build alternitive energy effecient vehicles, knowing that fossil fuels were becoming more demanding and expenive. We could have countinued being the worlds leading auto makers. I blame the Auto Unions, poor Management, NAFTA, Oil companies,the EPA, and especialy the US govenment for not taking a bigger roll in putting in place the tools they needed to stay No.1 in the world. Selling, or should I say gave, our technology to Japan, China and Europe was a big fat NO! NO! Our security has seriously been compromised. No More Tax dollars to the auto makers. HELL NO!!!
1 person likes this
@cbreeze (1207)
• United States
12 Nov 08
I have mixed emotiona about this. The federal government bailed out the financial institutions who inturn have done nothing for mainstreet. They just hoard the money to reward their top execs with more bonuses and perks. The auto workers are part of mainstream America. What is supposed to happen to them and all the different industries their income supports? I'm not necessarily opposing your view, but I just don't understand what SHOULD happen if there is no bailout for the automakers and they have to close their doors.
1 person likes this
@newtondak (3949)
• United States
12 Nov 08
American automakers can't make cars the compete in price with foreign models because they are paying unskilled labor working on assembly lines $50/hr to perform their jobs. Workers overseas work for much less and those companies are able to produce the vehicles for much less.
1 person likes this
• United States
13 Nov 08
I don't agree with the bailout. This has been a long time coming Just like the banks giving out crappy mortagages they both should of been able to see what would be coming down the road and adjusted there course. They both have highed paid anaylsts to help let them see the future of fossil fuels and bad loans. Nobody bails out mom and pop small businesses when they make bad moves. Don't forget to call your congressmen or email them let them know how you feel!! One person can make a difference that's what makes our country so great!!
@MissGia (955)
• United States
13 Nov 08
I'm sort of split on this in a way. Yes the auto industry is suffering and it is affecting me and part of my family. I live in rural Ohio and my father works in a union at a company that makes parts for cars. Hes been on layoff for over a month..Making it financially tough these days. My uncle, who is a car salesman for as long as I've been alive is even suffering. Hes always been well to do, always has had money and now him and his family have hit hard times as well. I think this is a much higher priority than giving the bailout to the financial institutions. This is affecting mainstream America hard and something does need to be done whether it is a bailout or not.
@etranger (126)
• India
13 Nov 08
i agree with your views on the copetitive strenght of general motors and they have to improvise it, but as of now bailout is essential not just to prevent the jobcuts but also to safegaurd the domestic companies so that their might be no domination by foreign entity also to prevent any burns in the steel sector which has also been affected by the econc slowdown....
@sierras236 (2740)
• United States
13 Nov 08
Thousands of people are already going to lose their jobs. There is no stopping it. The bailout will only buy a little time. The thing is the companies can no longer compete on an open market. The consumers can no longer afford to buy cars, so there is no real market to keep these companies going. Even if they suddenly mass produce some 'green' cars, there are no buyers. Without the buyers, these companies will go under and the effects will be exactly the same. I don't think it can be stopped.
• United States
13 Nov 08
Well, being from the great city of Detroit, I for one, am all for this bail out. It will impact the automotive industry in a negative way if companies like GM, Ford or Chrysler were to go under. We are first talking about the thousands upon thousands of jobs that will be lost due to this downfall. Not to mention the suppliers that will go bankrupt due to the heave orders that the Big 3 have with them. In fact, the Big 3 from Japan would suffer as well seeing as how they need those parts manufactures to keep making there US made cars and some of there foreign built cars as well. Also if you were to look at the latest J.D Power and Asst. ranking of the American cans, you would find that Ford and Chrysler have improved a lot on there build quality for there cars. So much so that they have surpassed Honda and Toyota for quantity in majority of the areas. So I say yes to this bailout for I believe that they have seen the error of their ways and are now looking to fix it with better cars and technology.
@jsitko (1169)
• United States
13 Nov 08
I agree, when is this going to stop. The large corporations that want bail outs are the ones hurting the smaller ones as well. What about the people they lay off, they need a bail out too, just like you and me I am sure. Can we ask for a bailout so we do not lose our homes? With them moving the companies over seas is really taken it's toll on the human race here in the states. What are we suppose to do for jobs? People with out jobs is growing as we speak, this hurts our economy as they are not spending money, paying taxes, no social security coming out of their checks. I think these bailouts need to stop!