NEW YORK (CNNMoney.com) - The future of the U.S. auto industry was in doubt Friday morning after a proposal for $14 billion in federal loans died in a late night Senate vote.
The Senate voted 52-35 to bring the measure for a vote - short of the 60 votes needed to advance the legislation. The failure followed the collapse of negotiations between Senate Democrats and Republicans seeking a compromise that both parties, as well as the companies and the United Auto Workers union, could accept.
The dramatic late-night developments could doom General Motors to a bankruptcy and closure in the coming weeks, with Chrysler LLC potentially following close behind.
It's unbelievable that Congress is so strict on the bail out money with the auto industry because not only did they hand over 300 billion to Citibank without any stipulations, but they also issued themselves a raise scheduled for January 2009. It's an outrage... Congress' greed is no different from the CEO's of the auto industry.
Its time to reinstate the Fairness Doctrine.
Great job republican senators, just what America needs 2 to 3 million more Americans out of work...You idiots should be returned to your village and never allowed to leave unsupervised. Idiots
6 out of 10 Americans are uninformed ! The most recent press regarding the definition of what is an American automobile…….hum, that’s easy. It all has to do with JOBS ! The transplants may employ Americans; however, their true reinvestment is sent back home (as it should be). Funny we cannot see the affect of this.... Unless we truly believe this doesn’t matter, we need to change the way we think as Americans before we become someone else. These jobs affect retail, state unemployment funds will fail, good bye vacations to the South......thank Senator Shelby for that ! America will see how this WILL affect them..........the PBGC will FAIL.....this is the insurance company protecting all ERISA pension funds (trust me ....they are seeing red with this market)........if you know anyone that is receiving a monthly check.....beware !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! keep buying foreign..................and this IS destiny.
The southern Republican senators want the automakers of GM and Ford to make less money a year than the $5,000 raise their giving themselves what a joke.
As much as I hate to admitt it, the car industries have to helped you or we will be screwing over those who did not cause this mess,(what else is new).We are talking about jobs people. If this does go the wrong way, take into account the trickle down effect. Not only do the car manufactures lay people off, but so do auto stores, auto sales, etc. It does not end with just the car manufacture. I would like to see them helped out under 3 conditions. 1.The GMs are fired with no severence, no bonus, nothing. 2. The entire loan has to be paid back in 10 years3. They start producing fuel effecient cars and truck within 2 years. Think about this people. We can do what we do in space, have a cell phone that does everything but unzip you pants (least ways not to my knowledge) and we cant produce cars and trucks in the United States that get 40-50 miles to the gallon without it being a coffin on wheels? Get real. Some of us are not quite that stupid to believe that we could not have been doing that for the last 30 years.
I just wonder why all these spiteful "let them suffer" comments directed at the auto workers didn't apply to the much larger and less stringent banking bailout. The Republican senators who voted to help bankers but not automakers have a lot of explaining to do.
I hope they do what the republicans want then we all can witness what happens then maybe if were lucky people will see how self-centered they really are these people don't care about other people's job just their own and they could careless what their policies do to the american people.
Good, the sooner the better!
I am amazed at how truly ignorant most people are. Let's look at the facts. Domestic auto companies, saddled by obscene and greedy union requirements along with ridiculous labor and benefit costs have struggled for decades. Foreign auto companies, while investing billions in our economy, and building dozens of manufacturing plants NOT saddled by the unions have enjoyed decades of prosperous growth.
Toyota, Nissan, Audi, BMW, Volvo et. al. have all seen their market share grow exponetially while the Big 3 continue to shrink. What truly is the only difference between the two groups.
It's the unions stupid!
The only answer is bankruptcy and the complete dissolution of the UAW. Otherwise, let them wither and die. The fear-mongering of the pathetically hypocrital union bosses, (who by the way enjoy the same obscene 7-figure salaries and perks that the CEOs of the automakers do), is lame at best. The country will not implode if the Big 3 end up declaring bankruptcy.
Demand may be weak, right now, but removing hundreds of thousands of cars from the market will simply provide sales opportunities for the remaining automakers as well as opportunities for a new "less-than-Big 3" to emerge from bankruptcy smarter, leaner, and more cost effective.
And these companies will hire many or most of the displaced Big 3 workers. Of course there will not be a union and people will have to realize they can't be paid $40.00 per hour for putting a nut on a bolt.
The bottom line is that the Federal Government CANNOT continue to bail out everyone because their business is having a rough time. MANAGE through it. Cut your costs. Cut your losses. Adjust to lower revenues. Tighten your belt.
I am a 11 year Non-Union Ford Motor Company employee from the South. Our pays and benefits are not even close to northern Union Ford Motor Company employees. So everyone of you that writes the Southern Senators and Republicans are to blame .....just hush! You know nothing about working for these auto companies. The 'lost in time' Northern way of doing business is over. Close the Michigan plants and relocate the headquarters to the Southern States...Free Work States. Goodbye Union, now you have the same health care as I...HA!!!! Asian auto companies are chosing the South for their plants....smart aren't they!!!
If it were only the auto makers, I'd say let them fail, just like a lot of you are doing. But it isn't. There are literally millions of small to medium sized businesses that rely on the automotive industry to stay alive, as well. That's millions who will go under, join the ranks of the unemployed and welfare recipients. Here is a true example of the domino effect in action, that can cause repercussions across the U.S.
While I support the idea of unions, a lot of our current unions are as corrupt as big business and the financial industry. I'm a white collar, college-degreed professional making a great deal less than union workers screwing in door panels, with a lot fewer and lesser benefits.
I think Congress should file Chapter 11, they need reorganized. It's about time they started worrying about this country instead of filling their pockets and their rich banker friends with American dollars.Shelby,Corker and Mitchell
I WOULD JUST LIKE TO SAY IF THEY GIVE THE TAXPAYERS THE BAILOUT MONEY THEN WE WILL BAIL OUT OUR OWN COUNTRY. I THINK IF THEY GAVE EACH PERSON $100,000 WHICH WOULD JUST ABOUT ADD UP TO ALL THE BILLIONS OF DOLLARS THAT THEY ARE GIVING AWAY. WE WOULD PUT OUR MONEY BACK INTO THE COUNTRY. BUT, THAT IS JUST WHAT I THINK, WHO AM I??
Good car, SUV and truck prices are reasonable to buy right now.
after all it is OUR MONEY!!!!!!!!!!!!!!!!!!!!!!!!
Becky, Midwest, Are you for real? You would let millions of people in this country become unemployed and loose their livlihoods, homes, and everything that they worked for their whole lives because you are tired of paying taxes? The moron pool in this country keeps getting larger and larger.
Is the "R" party suicidal? It's not just the UAW that has to "give up more", but everyone involved, and the "R" proposal didn't include specifics for the CEO's and other top incompetent management at these companies.
The reason that foreign-based auto makers can build their cars cheaper here in the USA is because of the health care package they provide the work-force. Our companies can't compete because the Bif Three pay huge inasurance premiums to money-grubbing insurance companies. That"s why we need major health care reform. We can't compete without that change, period.
The bailouts just delay the inevitable – the big three have a bad business model. Period. Stop putting patches and get file for bankruptcy and get a new business model. Democrats are a failure...