December 5th, 2008
03:30 PM ET
9 years ago

Senate Dems to prepare auto bailout plans this weekend

Dodd has been asked to spend the weekend working on auto bailout ideas.

Dodd has been asked to spend the weekend working on auto bailout ideas.

WASHINGTON (CNN) - A senior Democratic leadership aide tells CNN that Senate Majority Leader Harry Reid has asked Senate Banking Chairman Chris Dodd and his staff to work this weekend to prepare several options on how to help auto companies, plans Democratic will consider first thing Monday morning.

The aide gave a highly optimistic timetable, given the deep divide among lawmakers about how, and whether, to help Detroit.

“Ideally, we would reach consensus on process and substance with our caucus and Senate Minority Mitch McConnell mid-day Monday,” said the aide, who said their goal would be to schedule any necessary votes no later than mid-week.

Democratic leaders were hoping to confer with Republicans about various ideas most lawmakers are reluctant to discuss publicly.

One option that several leading Democrats are talking about is having giving the government big role in restructuring the auto companies, either with an oversight board or an individual. Some Democrats have suggested a “car czar,” and others suggest the president putting the treasury secretary in charge.

Dodd and Reid are scheduled to hold a conference call this afternoon with House Speaker Nancy Pelosi and Financial Services Chairman Barney Frank.

Filed under: Auto Bailout • Chris Dodd • Congress
soundoff (63 Responses)
  1. Jaye

    This is a terrible situation to be in and I don't know what the answer is....but....why pour more money into GM when it's ovbious they don't have a chance to succeed?
    Ford and Chrysler has a better chance, but, with so many people losing their jobs and filing bankruptcy, and the tanked mortgage mess, who can afford to buy a new car right now?
    So, what to do.

    December 5, 2008 05:15 pm at 5:15 pm |
  2. Jaye

    This is a terrible situation to be in and I don't know what the answer is....but....why pour more money into GM when it's ovbious they don't have a chance to succeed?
    Ford and Chrysler has a better chance, but, with so many people losing their jobs and filing bankruptcy, and the tanked mortgage mess, who can afford to buy a new car right now?
    So, what to do.

    December 5, 2008 05:16 pm at 5:16 pm |
  3. WIlly Brown

    "Democratic leadership" You're kidding right?

    December 5, 2008 05:20 pm at 5:20 pm |
  4. Mark, B'ham., Al.

    The republicans are there and they do not trust the Automakers or the UAW who want tax payers to pay for their UAW contracts. The democrats are wanting to re-introduce the K-Car from the 70's, for those of you too young to remember they were powerless pieces of tin that fell apart and you hoped you were not hit by a moped because you may lose! I have heard a few news people call the new K-Cars, "the Pelosi"!

    December 5, 2008 05:20 pm at 5:20 pm |
  5. Ms. B in California

    I thought that Congress and the Senate worked for the American people???? All the polls show that most Americans don't agree with the "Loan". So why is it that when the American people speak, our government ignores us and do what they want anyway? Did anybody hear from the CEO's that they were going to stop laying people off if they get this money? We heard the same thing that the Banks said when they got their money, NOTHING.

    December 5, 2008 05:25 pm at 5:25 pm |
  6. Jaye

    Why does everyone blame the democrats for everything?
    Good Grief.... put the blame where it lies...blame the idiots in the white house!!!

    December 5, 2008 05:29 pm at 5:29 pm |
  7. Norb

    Bail our General Motor and Ford. Chrysler is privately owned and will take the money and line it's own pocket's. If they get the money (Chrysler) I wouldn't be surprised to see their fat cats at some spa ala AIG. Chylser is toast unless somebody like Nisan or GM merge to take them over.

    December 5, 2008 05:34 pm at 5:34 pm |
  8. Greed is not good

    GREAT job Senator Dodd with the critical speech you gave to the auto executives. Make sure they are not given a blank check like Paulson got.

    December 5, 2008 05:37 pm at 5:37 pm |
  9. Mike, Syracuse NY

    Frank, if the UAW weren't a bunch of blood sucking leeches, there would be no need for a bailout. Paying someone 95% of their salary for 2 years after a layoff is just as obscene as the fat cat executive bonuses. The whole industry is bloated, and needs to file chapter 11. People working at US Honda and Toyota plants make about half what union workers do and are happy for what they consider good jobs. Give the UAW a choice between $45/hr and no job, and I bet they pick $45/hr. If not, there are plenty of people ready to take their place.

    December 5, 2008 05:38 pm at 5:38 pm |
  10. JT

    This clown was one of the main people that got us into this mess. Why anyone is asking him something more complex than where the bathroom is or how to tie a shoe is beyond me.

    December 5, 2008 05:43 pm at 5:43 pm |
  11. Larry C. in Texas

    If congress gives them a Bailout, then the american people will find out who voted....Then, they will Vote whomever OUT, when their time is up, believe me !!!

    Larry in Houston

    December 5, 2008 05:45 pm at 5:45 pm |
  12. canuck

    maybe Dodd will get a low interest rate Caddy, to park in his low interest morgaged mansion. mega dittos, Dave central ill.

    December 5, 2008 05:45 pm at 5:45 pm |
  13. No Incumbents 2010

    Everyone acts as if going bankrupt is theend of the world for these workers. If part of the competition fails then supply and demand will cause the others to succeed, therefore they will need to hire more people to keep up with demand. Yes there may be a cut in pay, but they will have a job. By cut in pay I mean from maybe $75.00 an hour for a spot weld to $ 40.00 for the same spot weld.

    December 5, 2008 05:46 pm at 5:46 pm |
  14. JL

    I bet there are a lot more strings attached than there were for AIG or any other white-collar industry the government has handed cash over to in the last few months.

    December 5, 2008 05:54 pm at 5:54 pm |
  15. Silence Dogood

    The people do NOT want a bailout of auto industry. Obama took a lot of money from big corporations. Let's see who Obama sides with.

    December 5, 2008 06:01 pm at 6:01 pm |
  16. Rhonda

    The Big 3 need to file bankruptcy. Period!!! Americans are sick of the bailouts!

    December 5, 2008 06:05 pm at 6:05 pm |
  17. Dallas, TX

    This clown is one of the main people who got us into this mess!

    Dodd and Frank! Two crooks!

    NO BAILOUT!!!!

    December 5, 2008 06:06 pm at 6:06 pm |
  18. Jeff in Illinois

    Requirements...requirements...requirements. Put in a plan to make plug-in electric hybrids (such as the Volt) or other such VIABLE, fuel-efficient vehicles mainstream as part of this. Maybe raise CAFE to 50 MPG by 2012 or the interest rate on the loan goes up. But do give them the loan, just make sure there are sensible conditions. Throw $50 Billion at research to advance fuel-saving technologies (if we can spend $600B+ in Iraq, we can CERTAINLY spend $50B for our security, right?

    I would think reducing America's oil consumption by 75% would go much further in preventing terrorist attacks and obtaining of nuclear weapons by Iran than boots on the ground could ever do.

    December 5, 2008 06:09 pm at 6:09 pm |
  19. ran

    People see how the vote turns out and you will see that the Democratic party is a party of and for the people and workers .

    December 5, 2008 06:25 pm at 6:25 pm |
  20. Aaron

    You know congress want to rake these guys over the coals for this bailout and I agree that no more money should be alotted to failing bussiness no matter who they are but where are the hearing for Fannie and Freddie? Why haven't congress put Dodd and Frank and whole list of other weasels in the hot seat for their dealings with these investment banks. Why in the hell haven't any of the major media outlets been barking at the obvious corruption going on in our government? There has been a lot of talk about the jets these guys flew to the first hearing but what about the jet that Pelosi uses on a regular basis and in paid for with our tax dollars. where is the out rage CNN stop your pandering to these politicians and start asking relavant and tough questions. Start to regain the respect of the United States by holding these corrupt political nitwits accountable to the people through the information you provide.

    December 5, 2008 06:25 pm at 6:25 pm |
  21. j

    Nationalize GM and restructure it to make energy efficient cars. Let Chryslar go under. Ford will probably survive on it's own.

    December 5, 2008 06:34 pm at 6:34 pm |
  22. gerri

    Dodd is the biggest windbag Ive ever seen,he never mentions the Money Paulson stole,but whines like a school yard bully that just got beatup by a freshman.

    December 5, 2008 06:38 pm at 6:38 pm |
  23. Fed up

    Chris Dodd is an idiot. He is part of the gang that got us into this mess, why would any intelligent person listen to what he has to say now?

    December 5, 2008 06:39 pm at 6:39 pm |
  24. Godluvr

    They have already released over 700B into the atmosphere. There are no paper trails for the McCain-Rescue Bailout Project! The 3G's are asking for 34B. There is an easier paper trail with the automakers than with the banks, etc. With GM the money is more tangible and more visible. It's directed to actual people, and seems to be a more concrete request.

    The uninformed person who suggested that we don't need them, and that imports will be just fine is undereducated about the situation. If the big 3 go down, import prices will go up! If you think there's a problem now, you haven't seen the stuffing hit the fan yet! Blessed are the merciful. The big 3 need some mercy right now!

    P.S. Bush is leaving another load of his 'stuff' for the new president. I think he is either very foolish or very evil, to have let the economy get so grossly out of hand! Republicans are quick to evoke their Two-Faced Strategy. They pretend to be on board until it looks like the plans won't work, then they come out in public and blame the Dems.

    Pray******Pray****Pray Don't laugh now, you may cry later!

    December 5, 2008 06:46 pm at 6:46 pm |
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