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croixflats

Auto industry bailout

14 posts in this topic

Yep they snuck the bailout under the radar. $25 billion. Dwarfs the 1.5 billion chrysler bailout and the $15 billion 9/11 airline bailout. It sounded like it was in the works from last year and they just wrote out the check.

When is this government going to just say no and stop rewarding bad buisness.

When are they going to bail my company out. It wont be that much it only has one employee and thats me. I am willing to settle at a fraction of other bailouts.

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Nothing like getting rewarded for building an inferior product. They had plenty of time and money to "retool" themselves and start making a product worth driving.

Makes you wonder????

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Under the radar is correct. I have not heard of this or do I know what the parameters are.

Being in the domestic automotive industry for 11 years, all I can say is I had seen this coming about 2 years ago, when I left the automotive industry. For the friends who have stayed, it has been hard ship and lower wages since.

It is either bail them out or watch the big 3 fall and be no more. Even then, it still could occur. Lets face it, American soil is not what is was 30-50 years ago to the American public.

Allot of people I know said Ford would be no more by 2010, unless something major changes.

I could see Ford, Chevy and Dodge falling to over seas companies entirely, if a major U.S. recession or even a depression is not averted.

Bad thing or not, I do not know. Companies fail all the time and I feel our country (U.S. of A) is trying to hold on as long as possible as of right now.

Maybe it was greed or big headedness that have gotten the worlds leading automotive manufactures to be out run out of town. As long as over sea’s vehicle can be sold and repaired in the U.S., it might just only be the pride of loosing out on an industry we created here in the USA, but could not maintain for the long haul.

Sad, but true frown!

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Ford, Chevy, and Dodge would still be doing just fine if they made cars that ran as long and were as reliable as some of these foreign jobs....

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What does the union have to say? Where are their ideas to help the auto companies or airlines?

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Quote:
What does the union have to say?

I have not had time to look into this, but I would figure the Unions had a major impact on this bail out and it going threw.

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Here is a little bit about the bail out:

Quote:
House approves $25 billion automotive bailout loan

Auto industry seeks loans to boost OEM business

Publish date: Sep 29, 2008

In the next few years, consumers could see the fruits of $25 billion in government loans for the auto industry through a broader lineup of gas-electric hybrid vehicles, new plug-in electric cars and an expansion of fuel-efficient engines.

The loans, approved by the House as part of a larger spending bill Wednesday, are intended to help the industry refurbish decades-old plants and develop advanced batteries and gas-electric hybrids. The loans are a major win for General Motors, Ford and Chrysler, who lobbied for the funding as they dealt with a sluggish economy and weak sales.

"We all know that there is real growth for our economy in this sector of jobs — green jobs, alternative fuel jobs — and I think we all feel the stresses on our domestic auto producers," says Sen. Claire McCaskill, D-Mo. The Senate was considering the loans later this week.

The loans were authorized in last year's energy bill but not funded. The loans were designed to help automakers meet costly new fuel-efficiency standards of at least 35 miles per gallon by 2020, a 40 percent increase. Auto suppliers are also eligible for the loans.

Loans will be issued from the government at discounted rates and administered by the Energy Department, which is currently writing regulations for the program. The spending plan, which includes $7.5 billion in case one of the companies defaults, would enable the department to speed up the rulemaking process. Companies would apply to the Energy Department for a loan, so it was unclear how the funding would be divided.

Ron Gettelfinger, president of the United Auto Workers, said the loans ensured that the "products will be built and the plants will be retooled right here in the United States." He said recent product announcements offered a sign of how the loans might be used.

GM recently unveiled a production version of the Chevrolet Volt, which is expected to propel the car up to 40 miles on a single charge and be in showrooms by late 2010. GM also plans to build four-cylinder engines in Flint, Mich., for the Chevrolet Cruze, a new small car.

Ford is producing more hybrid vehicles and announced plans in July to bring over six small, fuel-efficient cars it makes in Europe and sell them in North America. Chrysler showed three electric-powered prototypes on Tuesday and plans to sell one in the U.S. in 2010.

The loans were helped by the importance of Michigan, Ohio and Missouri, key auto manufacturing states, in the presidential campaign. Both Barack Obama and John McCain had expressed support for the loans.

Sen. Debbie Stabenow, D-Mich., said the loans were "critical to saving jobs" in an industry that has already shed jobs and struggled with weak sales, credit problems and a rapid shift to fuel-efficient cars as gasoline prices topped $4 a gallon.

Auto executives told House Speaker Nancy Pelosi last week that the economic conditions were the worst they had seen in 30 years and warned that tens of thousands of employees could be affected.

"We were going to be in a real box later on this year," says Rep. Fred Upton, R-Mich.

The companies hope to receive the loans at government interest rates of about 5 percent, which would save them about $100 million a year for every $1 billion in loans. The auto manufacturers have poor bond ratings and would only qualify for double-digit interest rates.

Industry officials floated a three-year, $50 billion loan proposal earlier in the month before settling on $25 billion. "As we go forward, we will be starting on the second $25 billion," says Rep. John Dingell, D-Mich.

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I feel bad, but if they would just make better cars. I have never owned an American made car, because they have never been as good in my lifetime. Does that make me evil, no it makes me a free market capitalist who rewards the best company for making the best car at the price I can afford.

If they can make it long enough there is a transition happening in autos to hybrids, electric etc. Good opportunity to re-establish themselves.

Does anyone think that this is a wider problem with Americans falling behind in science and engineering? Or is it laziness and shortsightedness by the big 3?

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I wonder with these loans that are supposed to help them on the green front will they still be making three differant versions of same car that is not green.

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And will anyone in Regular Joe America be able to afford them if our economy dips into recession? A working and paid off "heap" is almost always cheaper to keep her, even if a guzzler. Sure I'd love to trade for a super green sippin' machine but If the money's not there...I'm sticking with my Explorer.

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Its not so much that the top 3 can't produce quality autos that got them in trouble.

It was the trend that bigger is better. Everyone wanted that big bad 4x4, SUV, or cars with 300+ horse power. They didn't know that till a human behaviorist(his name escapes me)that is very good at, well, human behavior or more so human insecurity came into the ball game and told the big 3, "play on their insecurity".

Build something they can feel Invincible in. So in a time of cheap gas the big shift went to building 4x4s, SUVs, and lots of horse power. Production of the 30-40 MPG wimp mobiles was dropped.

Insert $4 for a gallon gas and what do you have.

If there is one way to bring this Country to its knees its cut off its supply of oil or jack its price up.

Because of that expensive oil the price of everything else we buy has gone up. Its no wonder these dream machines can't be sold and are sitting on the lot.

There is one thing that hasn't risen on account of high oil prices. Your pay check.

How many bailouts can we afford. I see more on the horizon.

Though all this there are a handfull that have made money.

We'll need to stop the manipulation of oil and financial markets in all their realms to recover.

When thats said and done the auto industry will have to stop giving us what we want and start making what we need.

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Thats not all they are sneaking into the bailout...

Theres over $100,000,000, One Hundred Million Dollars, in Tax Credits for Rum Producers in the Carribean... confused

Like that's gonna lift us out of the Financial Crisis...well maybe they're counting it as Ethanol, so it will help out the auto industry... laugh

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Why is there silence on this bill that has been passed is it not important to discuss that our legestlator snuck something by we no nothing about besides what has been given on this forum.

Hey im [PoorWordUsage] I dont care if it is lib or repub stops now

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Well, it ended up they put $196 Million into it for the Rum Producers...why do we vote for these guys... confused

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