December 4th, 2008
08:01 AM ET
5 years ago

Who Can Save Detroit? Automakers head back to the Hill

The heads of the Big Three are back in Washington.
The heads of the Big Three are back in Washington.

NEW YORK (CNNMoney.com) – Can anyone rescue the U.S. automakers?

General Motors, Ford Motor and Chrysler LLC each unveiled plans Tuesday that detailed how they would return to profitability if they get federal loans.

Still, even with President-elect Obama and the outgoing Bush administration saying they support providing assistance to the automakers, it's not clear that they will get the help they need.

The CEOs of the three firms are due to appear in front of Congress Thursday and Friday to make their case for what's now a $34 billion loan package. They had originally been requesting $25 billion.

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Filed under: Congress
soundoff (132 Responses)
  1. kim, ca

    you churn out crap products decade after decade. when you have to pay the price, you cop out and ask the american people to. this makes absolutely no sense. pay for your mistakes, and learn the hard way. or you're bound to repeat yourselves. these clowns shouldn't even be allowed to approach congress. this is america, buddy. a capitalist country.

    no bailout.

    December 4, 2008 12:25 pm at 12:25 pm |
  2. Michael

    Many companies are having to change in this economy. I did not ask for the change and downsizing in my company. I did not ask for the pressure of a layoff. These are forces that I could not control and could not predict as well. Someone needs to take full inventory of all 3 organizations and if it is not bolted down (and even if it is) it needs to be weighed, measured and if not needed – it goes. That includes employees, executives and products – and especially strategies. We are NOT hearing anything about change, layoffs, strategy shifts, renewable energy, Unions coming to the table and choosing between no jobs or lower wages...no benefits or fewer benefits. Everyone has to learn to live with less now...everyone...and no taxpayer money should go here until someone can show that will happen. Put ONE person in charge of cutting these organization to the essential...within 6 months...and then as the costs come down the bottom line will come up...and only if that person takes the first correct steps and gets little resistance should we fund it. Then again...sounds like bankruptcy.

    December 4, 2008 12:42 pm at 12:42 pm |
  3. sick n tired

    I 100% agree with Kathy's post!!!!!!

    December 4, 2008 12:43 pm at 12:43 pm |
  4. ck

    NO BAIL OUT!

    Let them solve their own mess, they created it!

    December 4, 2008 12:45 pm at 12:45 pm |
  5. Omaha Mike

    Failure of the auto industry will result in catastrophic job losses, not to mention the reprecussions for all of the companies that make their money by providing materials to the auto makers. Whether we like it or not, we can't afford for them to fail.

    That being said, there should certainly be new regulations if they receive a bailout. They should have to open their books and agree to a third party review of their expenses (corporate jets, ridiculously inflated executive salaries, etc.). There should also be stipulations that require them to increase production of flex-fuel and hybrid vehicles at affordable prices. The focus should be on reducing corporate costs and increasing their market share to get them back to solvency.

    December 4, 2008 12:50 pm at 12:50 pm |
  6. Brian G, Sugar Land, TX

    Who can save Detroit? Maybe the Canadians.

    December 4, 2008 12:57 pm at 12:57 pm |
  7. Keith in CA

    Reality check. They asked for $25 billion but now want $34 billion? If this was only about the CEOs, I'd say let them fall. I have a hard time feeling sympathy for automakers who kept producing SUVs the size of aircraft carriers when gas prices were hitting $4.00 a gallon. However, these companies employ millions of workers across the nation, not just the plant workers in Michigan. Our economy cannot take that many more layoffs. I would like to know what concessions the UAW is going to make. Cuts will have to be made all around.

    December 4, 2008 01:05 pm at 1:05 pm |
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