Democratic leaders on Capitol Hill said Thursday the auto industry has to come up with a plan before Congress will authorize a bailout. (AP Photo)
WASHINGTON (CNN) – The auto industry has until December 2 to fashion a plan that will provide a path to "accountability and viability," Senate Majority Leader Harry Reid said Thursday.
Reid and House Speaker Nancy Pelosi said in a press conference that the Big Three automakers - Ford, General Motors and Chrysler - had failed to convince Congress that they had developed a viable plan for the $25 million they are requesting in bailout funds.
"This is an important industry in our country and we intend to save it," Pelosi said. "Until they show us a plan we cannot show them the money."
Reid said Congress would return the week of December 8 to consider the proposal, but only if lawmakers are convinced that the public would be well-served.
NO TAXPAYER MONEY FOR THIS. Let them go out of business.
nice of nancy pelosi to shine her mask today
The big trhee should fire their top management for allowing their companies to get into this mess. The government can give them a loan only if they will produce the type of quality cars the public wants and needs with better mileage, hybrids etc.
If those fat cats don't want to go and comply let them go belly-up.
No point in throwing more money down the bottomless pit. And the money may only be used for productionfacilities in the US.
I agree that there should be a business plan submitted before any decision is made. However, that being said, if our government had allowed these car companies to sell their cars here that were enviromentally friendly, then they would not be in this position. Instead our wonderful government only allowed these car companies to sell those cars overseas, thus keeping the oil industry fat in our own country. So, it's not just the companies fault, but our government as well. And for all you naysayers that say this is not true, check it out and also ask anyone that's worked in the automobile industry for the last 15 years.
First off, who cares about the private jets, get off this as it is a stupid theme. These jets hold 12-15 people, thus the cost is not much more than buying all of them plane tickets. On the flight over, it is all business as they discuss the hearings etc..try doing that waiting in line at Reagan International getting frisked at screening. Plus on board, they have computers and state of the art communications devices etc. The guys are not running the local home hardware! If you are holding up a bridge loan that affects 1 Million jobs and 5% of our GDP because the guys at the hearings came in a business jet, no wonder this country is going in the toilet! WAKE UP
This country is in a crisis, the American bravado has become the laughing stock of the entire world. The way we do business is disaster, we are broke and the world is collecting the bills. The Canadians just gave the BIg Three, 4 Billion dollars in loans to help them with their Canadian operations, and they did not have to beg before any Parliamentary committees! Cowboy John Wayne has rode off into the sunset........
I think they are on the right track. The Big 3 need to present a plan before we just hand over the money to them. Unfortunately though, I do think we do need to help them out. Too many people are employed by these three companies or are in businesses that would be adversely affected by these three going under. We can't just sit along the sidelines while the fight for their financial well being, especially since so many other peoples financial well being is tied to theirs. That said, Washington needs to absolutely insist upon some changes being made within these three companies and they cannot back down from that.
I think that's 25 Billion and not 25 million. 25 million is just enough to cover their private jet travels.
The Democrats will do anything to please the UAW union, one of the big reasons Obama won was to continue the union status quo, which I'm sure he will do.
This issue will go away when the Dems take over.. It is an issue now because the Republicans can be blamed. No one wants to bail out anybody else, but this will appease the UAW and the Dems can say they tried. Wait till January you won't hear a thing.
We need to stop and THINK, people! Sure the Big Three must sell their jets! When they are going bankrupt its insane to fly on private jets.
Congress must insist on several requirements, one is certainly a 5 year-plan showing how they will succeed and pay back the American Taxpayer.
We can not allow over a million jobs lost! Yes, the Big Three are total idiots for not having the brains to see that their big-gas-guzzlers which are lemons were not selling in America!
They also need to fire all the CEOs, CFOs etc., and freeze wages. And produce ONLY quality, fuel efficient vehicles!
The Hummer is dead.
I think that congress should just allocate the money in a way that the auto industry DOES NOT get to even see it if they do have a plan by then. Do NOT just turn the money over to them!
Btw: What is the difference between this and the billions in subsidies we give to farmers - in some cases, subsidies to NOT grow food?
Please explain how this is Obama's fault?
MRS PLILOSI. great women, bravo,most intelligent thanmen senator,and represetantErico . chile. sudamerica.
hey matt, in response to the waxman article blog....i agree that the original spike in price to 140 a barrel was artificial demand, which is exactly why it dropped so fast down to where it is now. What i was saying is that they didn't get away with it in the end, and we'll see this year that the oil companies won't turn near the profit that they did last fiscal year where they broke the record. Furthering my original point is that gas will not goto 10 bucks a gallon, and even if they did create artificial demand to make it 10 bucks a gallon it would have the same bubble bursting effect that the first spike had.
Let the Big 3 go into chapter 11, put the companies in receivership, ask the employees to temporarily cut their wages by 20%, fire all the executives and void all their salaries, benefits and parachutes. Then tell the employees that they now own and run the company. If they save the company and it makes money, then they can restore their wages, and share all the profits made by the company.
While in chapter 11, Guarantee all cars made will have a 75,000 mile bumper to bumper warranty by using a Government warranty insurance fund, 0% interest rate for 60-72months and improved mileage on each car.
Sink or swim, I have more faith in giving money to an employee owned company than an executive owned company.
FWIW: Agree with the comments on spending and pay cuts. Also, I would ask the UAW to pull their deal forward 1 year. It does not kick in until 2010. The Big Three need it now.
My original post disappeared
I was an investor, the corporate jets are paid for and approved by the board. It was paid for by the investors of the company.
Business men from corporations like these have been kidnapped in foreign countries and held for ransom.
Again, taxpayers did not pay for the jets, investors did.
the auto industry FAILED
back when they were building and selling gas guzzling SUV and hummers they should have been building and selling fuel efficient cars
the auto industry played right into the hands of the oil industry; that's who should bail them out; not the tax payers!
if the auto industry did things right; we would have hundreds of thousands of AFFORDABLE fuel efficient cars on the roads and highways...there wouldn't be any layoff and plant closures like it is today.
the auto industry deserves NO bailout....they deserve to burn in their own greediness.
I love reading the comments here.
Company planes... yeah... that's the problem.
Big picture folks... big picture.
Millions will lose their jobs.
And last time I checked, a sound restructuring plan takes time to create.
Maybe the big 3 should follow congress' lead on how to create a plan.
They cranked out the $700 Billion deal in what, a week?
We've all seen how well that piece of trash legislation was written.
the auto industry traded in fuel efficiency for cup holders!!!!!
the auto industry catered to greed.
let the oil industry bail them out
This is what we should have been doing to AIG before they got any more money. JUSTIFY THEIR NEED FOR IT!!!
You want to hear from the "average" joe........................that would be me. I'm a 75 year old granny who fortunately still has a job. I have a nice place to live, my refrigerator always has food, etc. My point here is that taking responsibility at an early age, not ever depending on others for money, (bail out) gave me a life I can handle. No, I'm not saying it was easy! Had a life in the military, Jim was an E-2. For those of you that don't know, that rank is lower than dirt. Again, with three boys, we lived from payday to payday. (no bail out) Twenty years later, Lt/Col Brenner retired and what did he do? Yep, got another job. We still had responsibilities and made plans to execute them so "the gov,t would not have to take care of the Brenner's." GET THE MESSAGE AUTO INDUSTRY. NO PLANNING, YOU FAIL. JB
Part of a good discussion is accepting the fact that some people have no idea what they are saying and moving on. As adults we try not to rationalize with 2 or 3 year olds because they cannot be expected to understand rationality. The same holds true for those who take the 'blame Obama' approach. The guy was one of 100 senators in the U.S. Senate. Forget David and move on.