Comments on: Who Can Save Detroit? Automakers head back to the Hill

By: Keith in CA

Keith in CA — Thu, 04 Dec 2008 18:05:26 +0000

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.

By: Brian G, Sugar Land, TX

Brian G, Sugar Land, TX — Thu, 04 Dec 2008 17:57:27 +0000

Who can save Detroit? Maybe the Canadians.

By: Omaha Mike

Omaha Mike — Thu, 04 Dec 2008 17:50:52 +0000

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.

By: ck

ck — Thu, 04 Dec 2008 17:45:12 +0000

NO BAIL OUT!

Let them solve their own mess, they created it!

By: sick n tired

sick n tired — Thu, 04 Dec 2008 17:43:16 +0000

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

By: Michael

Michael — Thu, 04 Dec 2008 17:42:01 +0000

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.

By: kim, ca

kim, ca — Thu, 04 Dec 2008 17:25:09 +0000

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.

By: ad the bad

ad the bad — Thu, 04 Dec 2008 17:24:44 +0000

So the bailout has gone up from $25bn to $34bn in such a short space of time. What's to say it won't be another $50bn on top of that. Sounds like fuzzy accounting and greed or collective incompetence.
Let them sink, it's the free market economy. It is no longer acceptable to build mediocre cars that have 40% of their price dedicated to benefits and health costs. Get a grip, what other execs make $22 million for flushing their company down the toilet.
The con is over.
O and if Detroit sinks with the auto industry, how can it get any worse, ever been there!

By: Matt

Matt — Thu, 04 Dec 2008 17:24:02 +0000

Demote them all to crash-test dummy.

By: NEWSLINK

NEWSLINK — Thu, 04 Dec 2008 17:18:40 +0000

I have said some time ago, that the Auto Makers should borrow from the Big Oil Companies. They work hand in hand with each other, Now they want the Taxpayers to bail them out. Who is going to Bail the Average American out? Losing Homes, Jobs Medical Care, etc. still no help. These guys have sucked the Public dry, by building auto's that last as long as your payments. This is the main reason that Honda and others are doing better than American Auto Makers. The Quality has been going down for the Last 15 years. Now they want Welfare, and Poor Americans can not get any help. And what is the point of bail-out? When we do not have jobs to buy new cars.......

By: pam Eugene OR

pam Eugene OR — Thu, 04 Dec 2008 17:16:46 +0000

What they are asking for is operating capital. That will not solve anything! They will be back in 6 months asking for more. They have already stated that they need 5 billion a month to stay open.
They need to start over. We would be throwing away the money for jobs that can not ultimately be saved.
They need to file bankruptcy and reorganize.
We must let the free market dictate. Sorry folks but there are no real changes planned and it is too late for them.

By: Mark, B'ham., Al.

Mark, B'ham., Al. — Thu, 04 Dec 2008 17:16:46 +0000

To all those who think alternative fuels are so great, when you travel across the state or across country you are going to need a gas burning car as well as your electric car for local commuting because even the Volt can only go 370 miles at best without spending the night to recharge. Hydrogen for fuel cells has not proven to be safe enough for me to put my grandson in a car like that. solar is not reliable as I see at my job when we have a couple of cloudy days and our solar power instrumentation has no power. I wonder if the CEO's saw what a big drop in milage they got burning E85 compaired to gasoline when they drove to DC.

By: Anonymous

Anonymous — Thu, 04 Dec 2008 17:13:43 +0000

I wonder how many American jobs are really involved. Are not all the steel and, most certainly, molded plastic parts are coming from suppliers in China and Korea?

By: Mark Cross Junction VA

Mark Cross Junction VA — Thu, 04 Dec 2008 17:03:06 +0000

So we are going to bail out the UAW because they feel they didn't create this mess. These are the exact words of the UAW president. So lets keep paying some $71.00 per hour high school drop out worker who has inherited the position from prior UAW family members.I bet they can find a $20.00 per hour college graduate that can screw the same door knob on just as good!!!!! Let them go bankrupt!!!!!!!

By: Farrell, Houston, Tx

Farrell, Houston, Tx — Thu, 04 Dec 2008 16:53:31 +0000

Like many other Americans I don't think they should be bailed out. I haven't heard one word of any other attempts on their part to seek help before coming to the Feds. I don't trust any of these CEO's to do the right thing.

By: Phoenix

Phoenix — Thu, 04 Dec 2008 16:49:51 +0000

Look, we have to bailout the automakers. It's bigger than the CEOs because even if they go belly up, it's the working man that will feel it the most. Kathy, you labeled this correctly, corporate welfare, but Congress must REGULATE the money. In other words, we need to treat the big 3 as if they were the poor, "Hey, you need to dance for me in order to get this money." Reid and Pelosi have already said that the bailout does not have enough votes due to a weak business plan. It is encouraging to see that the executives will not be left in the candy store unguarded yet again.

By: souza

souza — Thu, 04 Dec 2008 16:46:06 +0000

This money will only pay current bills such as Payroll, Part companies etc. They do not have any products that are ready for production, such as a electric car. Even if they had products the past history shows people do not view their products as reliable and the consumer would be very skeptical to even purchase them.
The money would be better suited to small companies that have already developed the electric car and build production facilities such as Tesla Motor Company.

By: kenny

kenny — Thu, 04 Dec 2008 16:45:24 +0000

I can go by emotion also and say I hate the bailout and I don't think it's fair but I still need to know if it's necessary. We all know the auto industry is hugely at fault but we have to decide based on facts and numbers. At this point, who cares if the execs were at fault. What is sad is the public is starting to sound like congress. Pity and making decisions based on emotions. Can anyone honestly say right now that they know for certain that not bailing out the auto industry will actually be a good idea?

By: the kid

the kid — Thu, 04 Dec 2008 16:44:54 +0000

let them sink when the ceos give up their concessions then look at saving them until then let these big wigs go broke

By: proudliberal

proudliberal — Thu, 04 Dec 2008 16:44:36 +0000

3-4 million jobs? we cannot afford anymore job losses.

By: proudliberal

proudliberal — Thu, 04 Dec 2008 16:40:19 +0000

3-4 million jobs? we cannot afford anymore job losses.

By: FreeNLovIt

FreeNLovIt — Thu, 04 Dec 2008 16:39:17 +0000

I heard that when W won, the oil companies helped KILLED a lot of policies that would have created green-energy cars. So it's not totally their faults. Fundings were cut by the big oil companies who had the ears and eyes of W and his staff. Had Gore won, we would have been light years ahead of all our competitions!!!

By: FreeNLovIt

FreeNLovIt — Thu, 04 Dec 2008 16:37:59 +0000

Give them a chance America. They just need to retool and we'd be fine. They create millions of jobs for Americans who NEED these jobs. One thing for sure, we shouldnt have bailed out Wall Street/AiG or Greed/Grunch Street...

By: J.P.

J.P. — Thu, 04 Dec 2008 16:37:29 +0000

Who can save Detroit? The consumer. PERIOD.

No amount of cash infusion from the Gubmint will entice consumers to purchase the crap, yes CRAP, Detroit is peddling.

True, Detroit sells millions of cars every year. But then again, Amway gets new customers daily too, so you figure it out.

By: Beverly, NYC

Beverly, NYC — Thu, 04 Dec 2008 16:34:14 +0000

Talk about throwing good money after bad. Unfortunatley if they don't get a bailout the only people hurt will be the little guy as usual. The safety of this industry should be considered before congress votes. A through examination of their books should be done , waste cut, and consideration given to dropping the weakest link (GM), merge the other two, retrofit plants, retrain employees to build things needed by americans, trains, buses, and fuel efficient cars rather than writing a blank check to continue business as usual when no one is looking. (Thanks AIG). Then and only then should the funds be loaned.

By: Doug

Doug — Thu, 04 Dec 2008 16:30:40 +0000

When I started working at GM in the 70's I made $6.36 an hour. Most of you make substantially more money now 30+ years later. Remember GM and the rest tried to make more fuel efficient cars. No one wanted them. They wanted the SUV's and Trucks. Even Toyota and the rest tried to get into the Truck market. When I hear a congressman or any politician say "the foreign automakers will pick up the slack if they go bellyup" is the most unpatriotic statement ever. They may build plants here but the profits go to Japan, Korea, etc.
Let them go bellyup and then figure out who will make our defense equipment for this country. I guess we could ask China if they will sell us equipment to protect us. The last thing is check the sales of all auto industry. Toyota and the rest are way off on sales. It is the market not the product. They would not ask for any money because they can't from the U.S.

By: Virginia

Virginia — Thu, 04 Dec 2008 16:30:14 +0000

No one can save these morons!! When you outprice yourselves, you lose. No more tax money from us regular folk, please!!

By: Mari

Mari — Thu, 04 Dec 2008 16:23:15 +0000

People on blogs and in the polls keep saying NO BAIL OUT.......BUT......what about the auto workers and their families? What about all the supporting companies who will also go out of business?

What about your hometown auto dealers who will lose their business and lay off thousands of employees?

What about all the people who provide services for the Auto Industry?

This is much more complicated than our anger, over the idiotic leadership at the Big Three! Sure, they have mismanaged, they have NO vision, NO ideas...... but the domino effect of their failure will touch each and every one of us!

FIRE the CEOs & CFOs of the Big Three, clean house on upper management........ until NO ONE is left and start fresh!

We must protect the auto workers, they are our neighbors, our family members, our fellow Americans, its not their fault they work for idiots!

By: Franky

Franky — Thu, 04 Dec 2008 16:22:57 +0000

I can tell you who definitely won't save Detroit...the Lions! LOL!!! Na'h, I'm playing, I'm playing... Ohhh man, Detroit has it tough that's for sure...

By: TURN TEXAS BLUE

TURN TEXAS BLUE — Thu, 04 Dec 2008 16:22:05 +0000

I cant beleive that we are putting these People thru this and we didnt even DO THAT TO THE BANKERS!!!! At least they had the guts to come forward and admit fault and then ask for a BREAK! The COWARDS of wallstreet had the president beg for them, and then even didnt admit the fault!!! AND THEY DID WAY MORE DAMAGE to the economy!!!

By: bsmithHB

bsmithHB — Thu, 04 Dec 2008 16:20:45 +0000

Local banks were having trouble 3 years ago. The fed reserve let us down by not regulating banks as large as fanny may & AIG. We should bail out auto industry more than fat cat bankers. High gas prices is what started this. Banks lent cash to people who should not have qualified then gas prices climbed causing foreclosures on those bad loans. I have more cash now with lower gas prices. If I wernt scared by media we are in another depression I would buy new car now. That's what hurt auto industry

By: California Gold

California Gold — Thu, 04 Dec 2008 16:17:38 +0000

More handouts/bailouts requested on the heels of the utter failure of the Treasury to manage the $700 billion bailout makes it even more impossible for me to embrace the Big 3's request for a bailout. When our Treasury can't audit money, which was a Congressional mandate, and can't even speculate where the money went, I'm absolutely against more bailouts. Let the Big 3 file bankruptcy and let the United States Bankruptcy Court trustees oversee and manage reorganization and handle accountings---after all that is their job and they are excellent at what they do.

By: bababear

bababear — Thu, 04 Dec 2008 16:17:11 +0000

The Loan they are asking for is minimal compared to the free and untethered handout given to Wall Street. I believe that the people who are so adamently against this "bailout" are just exhibiting a knee jerk backlash reaction to anger about the bank bailouts – which have been mismanaged and unaccountable. At least this would be a loan, albeit low interest and the investment is in industry – not a reward for borderline criminal activities for making money off of manipulating other peoples money. I believe that the auto makers should be made to be accountable for past mistakes by insisting that they manufacture energy efficient practical products and discontinuing those like the Hummer and concessions inexpenses from CEO down the line. I believe most people would rather take a pay /benefits cut than loose their job. This loan will be funding jobs – not greed. The million plus jobs this loan could save far exceeds the cost.

By: kathy

kathy — Thu, 04 Dec 2008 16:09:22 +0000

OOOWWT-SOURCE NOOOOWWWWWWW!!! NO MORE CORPORATE WELFARE ON TAXPAYERS DIME..WE ARE THE ONLY SHARE HOLDERS ON THE PLANET WHO GET NO RETURN ON THEIR INVESTMENTS!

By: Mike, Syracuse NY

Mike, Syracuse NY — Thu, 04 Dec 2008 16:09:03 +0000

Delphi Joe, Honda, Toyota, Suburu and others employ tens of thousands of US workers. They have 'exported' jobs from their countries to the US because it's economical to do so if you don't have to pay insane union wages and benefits. If the big 3 fired their entire union work force, cut pay and benefits to match that of US Honda plants, they could fill all the 'lost' jobs in a week with people who think $45/hr is a pretty good deal.

By: bsmithHB

bsmithHB — Thu, 04 Dec 2008 16:07:22 +0000

We loaned Chrysler cash & bailed them out before. Lee iacoco paid loans back early with interest. We helped airlines help US auto industry. I am upset more with AIG those CEO's should be jailed with such high pay and mismanagement when they knew of their troubles. The bank failures have more to blame for economy which has hurt automakers than automakers Leadership

By: No Kidding

No Kidding — Thu, 04 Dec 2008 16:06:41 +0000

Its so sad that these companies get special treatment, what of other ailing companies, who else needs a handout, sorry I meant a bailout....
Now bailing out the schools that I wouldn't mind....

By: Mike, Syracuse NY

Mike, Syracuse NY — Thu, 04 Dec 2008 16:04:08 +0000

Rules for a bailout:
1. No bonuses for anyone until the companies are profitable and the bailout loan is fully repaid.
2. All union contracts voided. Union line workers get same pay and benefit packages as their US Toyota and Honda worker counterparts, same for executive pay. If they don't like it, good luck finding another job.
3. Fuel mileage for 2010 models must average 35 MPG, going to 40 MPG by 2012. All models must have a hybrid option. A windfall profits tax on oil companies will pay for tax rebates to anyone who buys an electric or hybrid car.
4. Big 3 each have to introduce a production model electric car by 2010.
5. Companies downsize workforce to match demand. Layoff benefits made the same as the rest of US industry, no better than one week pay for each year of service maximum.

By: Sam

Sam — Thu, 04 Dec 2008 15:59:10 +0000

The bailout reminds me of an old Indian saying that's loosely translated means: In a crazed party whoever got to eat is the clever one...Meaning, in all the craziness of the bailout plan, whoever made out good, at the expense of others is the clever one...I am sure there are plenty of clever ones out there making out good at American tax payers' expense...

By: JK Ashburn, VA

JK Ashburn, VA — Thu, 04 Dec 2008 15:58:56 +0000

Some colleagues and I will be riding horse drawn wagons, complete with buggy whips, to the hill in search of a bailout for our troubled industry to.

Congress needs to stop picking winners and losers (since they themselves are incapable of competent management and decision making) and let these companies and industries be driven by consumer demand. The Chevy Volt will not save GM. No one will pay that price (>$40K) for a car that will only go 40 miles between 6-hour charges.

By: delphi joe

delphi joe — Thu, 04 Dec 2008 15:58:20 +0000

I don't think your asking the hard questions of the CEO's $1 a year salary. Like what other compensation are they coming to get after the year is completed, how much of and increase in their salary the following year or furture for this act.

You guys never question how many people are employed across the globe, when they cry out about the all the UAW retired people the US employed have to support. So if the jobs were here then we could support are retired workers.

It appears to me that slavery is alive in America, corporations are allow shop the world for the cheapest labor force and have them manufacture are goods the are sold to us todays prices. And lets not forget they same corporations are driving US workers wages down and they expect us to continue to buy.

I bet we are the only country in the world that employs world.

Ross Perol said it best the suching sound of jobs leaving America, how true that is now

thanks Joe

By: Elle

Elle — Thu, 04 Dec 2008 15:57:41 +0000

The best thing that could happen to the Automakers is bankruptcy. That will force them to change their ways and the only ones that would lose their jobs are the big guys.
This is NOT a necessary "bailout rescue" as it was with AIG. AIG affected the entire world. The "big 3" will be much better off dealing with their own problems without taking MY money. Wanna make a profit? Make a better car!!!

By: DC

DC — Thu, 04 Dec 2008 15:55:15 +0000

They better not get a bailout...poor management doesnt deserve a bailout

By: Marie banderas

Marie banderas — Thu, 04 Dec 2008 15:53:47 +0000

Maybe these giant auto corporations would do better to go talk to people who DID NOT make bad choices, like Oprah, and many other successful companys, get dvice from them on how to BE successful !
Bail outs are NOT the answer..this is exactly WHY bankruptcy laws were created, to let people OR corporations be able to "restructure" and go on and BE successful..
NO BAILOUTS

By: Lynne

Lynne — Thu, 04 Dec 2008 15:53:32 +0000

We only give bail outs to people who make money out of money, the same ones that caused this whole financial mess, not people who actually make things. Our entire system and way of thinking needs to be restructured. The automakers, AIG, citibank, and the rest of the rich welfare recipients need to figure out how to save themselves, like the rest of us have to.

By: Ian

Ian — Thu, 04 Dec 2008 15:52:14 +0000

I wonder if they even paid for the cars the drove to Washington.

By: Dorothy in NC

Dorothy in NC — Thu, 04 Dec 2008 15:48:41 +0000

I don't think we should bail out these automakers until the following happen: first these CEO's need to reduce their salaries and eliminate their bonuses. They all need a reality check. They live in the lap of luxury, when their customers cannot afford their vehicles because many of them are not dependable and are gas guzzlers. Second they must have blueprints for economy cars that aren't going to break us trying to keep gas in them. Third, there must be accountability for this money in a detailed report to the President and American people describing where every cent of this money went.

The US automakers have made bad decisions about their finances ands about their cars. Handing them taxpayer bailout money without stipulations is like burning money.

By: Dutch/VA

Dutch/VA — Thu, 04 Dec 2008 15:48:34 +0000

Detroit can save themselves. All these knuckleheads need to do is start making cars that don't depend on oil. Problem solved. I'm sure President-elect Obama wouldn't mind giving the Big 3 a loan if they are making a product that is going to sell and not just sit on the showroom floor. They need to convert all of their vehicles into hybrids.

By: Matthew

Matthew — Thu, 04 Dec 2008 15:47:42 +0000

The bailout or this form of oligarchy is a shameful display of the lack of concern of what has really been happening in this country economically. Economically there are a large number of people who can't comprehend this event or even size it up in any way. If the automobile was sincerely in need they would have kept production in these urban parts of town and those people would have been able to recompense their shortfall. When you have employment in areas where there are people in need it surfaces the higher up hierarchy and supplies a base for lending. The logic of this event seems to be under control, but out of that it will play in to the wrong people's pockets (the American people). Abroad it remains to be under control in their service industries, because people (all people) are being taken care of. A bailout is no different than drilling in restricted territory for more demand in a place where people's lives are at stake.

By: Annie, Atlanta

Annie, Atlanta — Thu, 04 Dec 2008 15:46:27 +0000

I saw Michael Moore on MSNBC last night saying that GM stock right now is worth under $3B and they are asking for an $18B bailout. His suggestion is that the government buy up the stock – it would be cheaper for us taxpayers. Maybe it's not such a bad idea.