November 20th, 2008
03:36 PM ET
5 years ago

Dems to Big Three: Show us a plan

ALT TEXT

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.

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Filed under: Congress
soundoff (197 Responses)
  1. K. B. Denver, Colorado

    Bailout fatigue has set in and the auto industry is going to have to use it's
    advertising agencies to sell this idea of a "BRIDGE LOAN" to congress.

    Oh wait good advertising has not helped them sell cars lately scratch that idea. Maybe they will have to sell the idea to us the tax payers just, maybe congress is waiting for public opinion to be more favorable and god bless CNN and other media outlets for trying to educate Americans on just how explosive this situation really is, the last thing we need to do is develop a "who cares" mentality.

    After all just how much of a manufacturing industry will be left with out The Big Three?{Ford, General Motors and Chrysler} If you've been watching the news or studying economics that's rhetorical question

    November 20, 2008 06:20 pm at 6:20 pm |
  2. Brett

    Get rid of the UAW and the Democraps and all will be well.

    November 20, 2008 06:20 pm at 6:20 pm |
  3. Greed is not good

    Outstanding speech by Chris Dodd...the Big 3 don't deserve a bail-out they have been so wreckless. Minimally they had better put a solid business plan together otherwise let the chips fall.

    November 20, 2008 06:21 pm at 6:21 pm |
  4. Jon, DC

    "Show us the plan for speding $25B? Did the law makers actually asked what the "Big 3 Auto Maker's" problem is? Has the law makers actually articulated what the auto maker's problems are? Are they asking to be given $25B to make payroll, offset operating costs, make loans to consumers to buy cars or what? Or are law makers just going to give them $25B to turn around and tell taxpayer they did not actually ubderstand how to spend $25B, just like the treasury did? Why is filing for bankruptcy not an option, afterall, other business that could not stay above water do file for bankruptcy toturn around and become more nimble. By the way, I need $750,000.00. Can law makers bail me out? I'll document how I will spend it.

    November 20, 2008 06:21 pm at 6:21 pm |
  5. Frobama

    The picture would be more appropriate with 5 tirds standing there.

    November 20, 2008 06:23 pm at 6:23 pm |
  6. ROC

    $25 million to bail out the big 3?

    November 20, 2008 06:24 pm at 6:24 pm |
  7. bill

    NO BAIL OUT OF AUTO MANFUCTURES.

    November 20, 2008 06:25 pm at 6:25 pm |
  8. kelly WI

    Bankruptsy won't end the industry. They can restructure and become competitive. In price as well as quality.
    The laid off UAW workers still get 95% of their pay even when they aren't working.
    Being an old timer, I have had cars from all the Companies. From Mercedes down to Honda. Right now I have a Toyota Avalon and it is much better comfort wise and quality than the Cadillac I traded in for it.
    The GM plant 15 miles up the road here is closing in Dec. The oldest GM plant in the country. Has been updated several times at the tax payer expense. Maybe now they wil get their act together and it will be put to use again.
    Sure its all about the Unions. They had plenty to give to the Obama campaign and are looking for their payback. The company can take their lumps for caving to their demands.

    November 20, 2008 06:25 pm at 6:25 pm |
  9. xMil

    It is not a bailout – it is a bridge loan, aka – a loan, to move from a place to a new place. Grief, doesn't anyone understand the concept of a bridge loan?

    November 20, 2008 06:27 pm at 6:27 pm |
  10. jane

    David, you're an idiot. Taking money out just because McCain and his campaign sucked you in and scared you with his/their smear, lie, scare tactics is such a stupid move on your part and the part of all those other people who have done the same. Doing what you've done only weakens the economy even more. So, if you want to whine about someone, whine about yourself and stop blaming Obama for something he has absolutely nothing to do with.

    November 20, 2008 06:28 pm at 6:28 pm |
  11. Jim

    I find it somewhat hard to fathom that they had to ask the Big 3 to show them a plan. Were I coming before this body with my hand out for that kind of money - and this isn't just something that happened overnight - I would have had the plan in hand when I walked in the door. At least that would have given some indication that I was serious about this. As it is, this just seems to indicate that they are arrogant enough to think that the cash was just going to be handed over on behalf of the taxpayers of America - many of whom are out on the streets trying to figure out how they're going to get by. Certainly not flying to D.C. in plush corporate jets.

    November 20, 2008 06:28 pm at 6:28 pm |
  12. Lois R

    Nov. 7 (Bloomberg) - General Motors Corp., the world's biggest carmaker, opened a $300 million factory in Russia as it looks to compensate for slumping sales in western Europe and North America.

    Where do you think they will get the money for this???
    Please don't be stupid..Americans will lose their jobs anyway...
    Lois Illinois

    November 20, 2008 06:28 pm at 6:28 pm |
  13. JOE KILOZ

    LET,,,,,,,,,,,,THEM,,,,,,,,,,,,GO,,,,,,,,,,,,BANKRUPT,,,,,,,,,,LIKE,,,,,,,,,,,,,THE,,,,,,,,,,

    GOVERNMENT

    November 20, 2008 06:29 pm at 6:29 pm |
  14. deb in Colo

    Why don't the Big 3 go to their OIL buddies who are making BILLIONS in profits every quarter for a loan? After all – the gas-hogs the Big 3 build are in part directly responsible for those big profits....

    November 20, 2008 06:34 pm at 6:34 pm |
  15. Gene

    To the Rob that wrote this:

    So, what does "Mein Kampf" translate to in Ebonix?

    "Audacity of Hope"

    Why don't you just change your handle to "Radical Right Wing Racist" so that we can just ignore your comments and move on

    November 20, 2008 06:41 pm at 6:41 pm |
  16. deb in Colo

    To Annjell-

    Great – but they are now asking the Tax payers to fund those jets. AND OH BY THE WAY – - they weren't flying them in a foreign country. But here in the good ole USA....

    November 20, 2008 06:41 pm at 6:41 pm |
  17. Margot, Northern California

    To get rid of those gas guzzlers, new & used they should be out-fitted with electric / cng engines. That would create /boost a green sub-industry . I could help get rid of back inventroy and actualy help the economy & environment.

    R&D can go into high gear to make conversion kits compact & efficient. Installers will need to be trained and licesed. "Fueling" stations need to be converted from regular gasoline, etc. Larger urban areas already have started, but we're up on the Lost Coast, the closest cng station being 250 miles away.

    November 20, 2008 06:44 pm at 6:44 pm |
  18. Yea right!!

    What happens if The Big Three roll out a detailed plan to Congress & they accept it, loans them the money, & then they don't do what they said? Is there some sort of punishment?

    November 20, 2008 06:44 pm at 6:44 pm |
  19. tennisguypitt

    No bailout unless there is a lot of oversight! I just don't trust these stupid CEOs. They screwed up and they should pay the price!

    November 20, 2008 06:46 pm at 6:46 pm |
  20. Vence wilmington CA

    Wise decision of Congress to ask for a plan.
    We need to change the culture of the good all boys. Waste is not an option anymore, and the big three have to learn that the hard way. After fix them the big oil should be brought to accounts too. Both of them and Republicans have underestimated the need for better savings. People is right is time to payback what you have done to the people for so many years. Interestingly, now that we have options they are worried.

    November 20, 2008 06:48 pm at 6:48 pm |
  21. KG

    The "show us a plan" strategy should have also been used for the financial and insurance folks as well.

    As a matter of fact, it should be used for any company wanting a piece of this bailout money. If you can't show us a plan as to how your going to use the taxpayer's money for the betterment of your industry (and in the end, the betterment of the US economy and the taxpayer) then keep your hands off our cash!!

    Oh yes, and Congress, if you're going to give this money out, you better dang well provide oversight and make sure these companies are following through with their plans and not squandering our money!!

    November 20, 2008 06:49 pm at 6:49 pm |
  22. kenny

    I’m a auto worker, why is it everyone wants to blame the uaw for the auto makers bad decisions, Everyone should watch the movie ” who killed the electric car” and see why Detroit’s in trouble. The Big Three along with some overseas auto makers sold out to Big Oil. That’s why Ford Motor Company still do not have a electric car program. Big Oil gave the Auto companies oil stock to destroy their electric cars, that’s why ford has bp stock and GM has exxon stock and so on, and it just blows me away no one wants to talk about this.

    November 20, 2008 06:49 pm at 6:49 pm |
  23. Charlotte

    When they cut expenses they won't need a bail out. The UAW is extorting wages from all of us. $76.00 an hour is rediculious. It is no wonder the cars cost what they do? I watched a guy hit a bumper into place, for that kind of wages? They also pay employees 96% of that $76.00 to set at home if they are laid off? I say, cut the wages in half from the bottom up....

    November 20, 2008 06:51 pm at 6:51 pm |
  24. Eric - Detroit

    It's funny to hear folks talking down on unions. Do you people realize what a union represents, how it empowers and protects the workers?

    If you don't understand, then just spend a little time in the military and/or at a crummie business where the leadership pushes their workers into the ground.

    In other words, educate yourselfs, or at least have some real life experiences before commenting about something you obviously don't understand.

    November 20, 2008 06:51 pm at 6:51 pm |
  25. recycle washington

    ----my dad is losing his job....who's gonna bail him out ?
    he works for a phone company.............

    November 20, 2008 06:51 pm at 6:51 pm |
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