December 19, 2008
Posted: December 19th, 2008 11:30 AM ET
GM Chairman and CEO Rick Wagoner held a press conference Friday after news of the Bush administration's auto bailout plan was released.
GM Chairman and CEO Rick Wagoner held a press conference Friday after news of the Bush administration's auto bailout plan was released.

– Senator George V. Voinovich, R-Ohio:
"The president has supplied oxygen to a patient fighting to get healthy through restructuring and becoming more competitive."

"While we are not out of the woods, there are millions of hard-working Americans today who can breathe easier this holiday season."

– Congressman Tom Price, R-Georgia:
"It is deeply disappointing that the administration has chosen to use taxpayer dollars to delay the inevitable need to fundamentally restructure these companies."

"By bailing out automakers without real reform or long-term solutions, we are only protracting uncertainty and putting billions of tax dollars at grave risk."

"It is now clear that the creation of TARP was a rueful mistake which has failed to provide urgent market stability, yet has put our country perilously in debt for the foreseeable future."

– Congressman John D. Dingell, D-Michigan:
"While I applaud President Bush's decision to provide short term loans to the domestic automakers, I have strong concerns about some of the conditions that were placed on these loans. We all want to see the Big 3 restructure and be competitive in the future, but it is irresponsible during a time of economic crisis for the White House to insist that workers take further wage cuts on top of the historic concessions they have already made."

"I strongly urge President-elect Obama to revisit this issue as his first priority upon being sworn in, and to ensure that assistance to the automakers is provided in a way that is fair to working Americans."

Watch: GM CEO Wagoner on Bush rescue plan

– General Motors statement:
"We appreciate the president extending a financial bridge at this most critical time for the U.S. auto industry and our nation's economy. This action helps to preserve many jobs, and supports the continued operation of GM and the many suppliers, dealers and small businesses across the country that depend on us."

"This will allow us to accelerate the completion of our aggressive restructuring plan for long-term, sustainable success."

– Chrysler LLC Chairman and CEO Bob Nardelli:
"We intend to be accountable for this loan, including meeting the specific requirements set forth by the government, and will continue to implement our plan for long-term viability."

On behalf of the men and women of Chrysler and its extended enterprise, he said he would like to thank the administration and Treasury for their confidence in the company.

– Ford Motor Company President and CEO Alan Mulally:
"As we told Congress, Ford is in a different position. We do not face a near-term liquidity issue, and we are not seeking short-term financial assistance from the government."

"But all of us at Ford appreciate the prudent step the administration has taken to address the near-term liquidity issues of GM and Chrysler. The U.S. auto industry is highly interdependent, and a failure of one of our competitors would have a ripple effect that could jeopardize millions of jobs and further damage the already weakened U.S. economy."

Filed under: Economy


Rhonda   December 19th, 2008 4:31 pm ET

Not all Union members have a full time steady job, most who work in industrial/construction work only when work is good, some having to travel all over the country to find work, they might work 6 weeks here, 8 weeks there. When they're out of work they draw unemployment just like everyone else. HOW are they riding the coat tails of the taxpayers THEY are TAXPAYERS. They NEGOTIATE a contract with a client much like you would negotiate a wage with whoever you go to work for. So you're just mad because they are better negotiators than you? If you had an opportunity to make better wages/benefits you wouldn't take it, I'm calling BS on that one. Bush didn't bail out the UAW, he bailed out GM and Chrysler.

G.R.I.T.S. - Girl Raised in the South   December 19th, 2008 4:26 pm ET

AEK – Amen to that.

worker b   December 19th, 2008 4:09 pm ET

joeb,

I busted my a$$, not in a union. have never had a guarantee and fought for every raise that i got. I work harder then most of them. I know.

Mgmt is the problem too, i agree, but so too are the lame investors that keep pumping money in to a company that pays its mgmt and employees unsustainable salaries.

We taxpayers are now the fools to for investing in the bailout.
we're just paying union workers and mgmt fatcats for products they cant make profitably.

proletariat   December 19th, 2008 4:05 pm ET

to Jackie,
I agree fully!!!!!

I got where I am by training and retraining, quitting jobs when necessary, being laid off, going back to school, starting new jobs, standing up for myself to get a raise, etc.

And at the end of the day, I've never been at a job that paid me to sit at home for a monthlong shutdown, or paid me to quit (bought out of a union contract).

Ultimately, the automakers could just fire the union. put wages in place that are industry standard, benefits that are industry standard, and no guarantees on employment...just like the rest of the country.

The animosity felt for the unions is because they have become just as bad as the fat cat CEO's making 10million$ bonuses. The unions grab gravy for the members and leadership. While that may seem to be nice for the worker, ultimately it creates an employment model that is out of sync with every other job in the country.

union, no.   December 19th, 2008 3:56 pm ET

@ rhonda,

The unions are not ALWAYs the bad guys, but they have become an entrenched entity as bad as our political system. Can you go work for the automakers and opt out of a union?? I don't think so. They hold a monopoly on the work. What if I went to GM and said hey, I'll work for 10
% less than a union worker. Well, they couldnt hire me. But that wage may be more than enough to allow me to live a very good life.

It may have been the unions that got us alot (read Upton Sinclair's "The Jungle") but now they are just as bad as the corrupt politicians. Unfortunately they are as bad as a lot of Americans who now also feel entitled to things like social security.

The unions have created a pyramid scheme that just keeps paying them off whether they work or not and even after they retire. 99% of real, profitable companies don't do that. and while you may say look at how well the workers are doing with great wages and benefits, you look at the balance on the books, and there is nothing to stand on...they're in debt and the company is folding. We're just using tax money to prop it all up...

Anonymous   December 19th, 2008 3:50 pm ET

Let's See.....Take a wage cut, or loose my job.....hmmmm????????

joeb   December 19th, 2008 3:50 pm ET

To all you morons complaining about the UAW: Try and do their jobs (MOST of them) for about 6 months and then come back here and tell me whether or not you want to continue. Poor management is 99% of the reason why the car companies are in the predicament they are in. Get rid of most of the idiots on the "Management Team" and cut their pay too, since they are responsible for the mess. No, I do not belong to a union, and I never have. Most of you complainers have never done an honest day's work in your lives.

sg   December 19th, 2008 3:49 pm ET

While I'm mad that the UAW got a bailout but I'm glad something has been done to help the AMERICAN car manufacturers. We do not need to lose more AMERICAN manufacturing. I owned a Toyota once. It was scrap at 130K miles. I have a 94 Chev truck with 326K on it and it runs and looks great! I'll buy another one when it dies – Whenever that is! Hopefully I'll have a job in September to buy a Volt. When is Toyota, Honda, Nissan, BMW, Mercedes or Volkswagen going to have an electric car on the market??

Ron Ft. Myers   December 19th, 2008 3:48 pm ET

Let Dingell give the auto workers his money that WE pay him. He has got some nerve talking of conditions. They would not have been able to get a cent out of a lending institution. What about the many more millions of us who are getting ZERO help?

Don   December 19th, 2008 3:41 pm ET

Wonderful. But helping the person on the street is out of the question.
Anything for the people that have lied, cheated, and stolen their way to the top-–but for the guy on the street--Nada.

RinFL   December 19th, 2008 3:27 pm ET

Lisa in Ga December 19th, 2008 1:27 pm ET

I just want to know : since it is the taxpayers dollars that are bailing everybody out……. where's my cut!

I think I figured it out.............The people against this did not get their cut!! I Just knew it was not "conservative values" NEVER WAS.

shelby   December 19th, 2008 3:26 pm ET

As I understand it there is already a two-tier salary system in the UAW with new hires basically working for half that of the veterans. That's a good first step, but the problem of what to do with the retirees and/or their survivors is very real. Many of these employees left the company when they were offered buy-outs and early retirement incentives. How many of them are under the age of 50? They receive monthly benefits plus full medical for themselves and their dependents for life. Somebody needs to do the math here and cost that puppy out. Meanwhile most people work to at least 60 and then must pay at least $1000 a month. Now we get to pay for the UAW"S workers too. Is this a great country or what?

Jackie in Dallas   December 19th, 2008 3:22 pm ET

I'm sorry, but union workers have been riding on the American taxpayer's back for far too long. I have a college degree, a technical job in a constantly changing industry (which means constant "continuing education" for me), and don't make anywhere near what those union workers make. I also don't have the benefit package they have, the health coverage they have, the incentive programs they have, or the discounts they have. I don't get paid for not working (well, I do get two weeks of combined sick leave and vacation days) or for when my company shuts down.

I think unions need to restructure their thinking a lot while the Big 3 are restructuring their businesses. At least your workers HAVE jobs; there are all too many people who do not!

Irritated in Fl   December 19th, 2008 3:17 pm ET

Hey Obama...I'm broke. Can I get a "bailout"? If I'm broke I can't pay my bills and buy groceries, therefore it will affect numerous businesses. How about it?

Libs be dopes   December 19th, 2008 3:17 pm ET

So how is going to help me in deciding to buy from the Big Three over another car manufacturer?

Almost reminds me of the old fable of the boy putting his finger in a leak on a dike.

Rhonda   December 19th, 2008 3:15 pm ET

Why is it that the Unions are always the bad guys? They negotiated their wage packages and like everyone else deserve a decent standard of living. It's easy for you to whine about unions when you don't belong to one, unions are the reason you have 40 hr. work weeks, vacations, holidays and paid overtime. I never hear about any of the fat cat corporate white collar workers giving up any of their wages/benefits. If it weren't for Unions we would all be making low wages have no benefits, we would be at the mercy of the those corporate fat cats with no leg to stand on. Keep buying your foreign cars and China made crap and sending all that money to their country while our economy is tanking. Just because it's made here (Toyota, Honda) doesn't make it American.

Give me a break!   December 19th, 2008 3:07 pm ET

Bailout the American teacher...

where's my bailout   December 19th, 2008 3:05 pm ET

where's my bailout??

My company laid off 50% of its workers and stopped paying the rest of us. I went 8 weeks without pay before I quit. (note, they didn't lay us off and we couldnt get unemployment because those of us who left, quit).

Now I look at the autoworkers who get PAID during a monthlong "shutdown". !?!?!? What a bunch of whiners. One article said they would only get about 90-95% of their normal pay while on the shutdown....

OH, how my heart bleeds for them.
Wake up and see what the rest of America sees....we don't get bailouts...we have to suck it up and get on with getting on. we dont get bailouts, and we dont get our "contracts bought out".

THE UAW is a bunch of whiners.

AEK   December 19th, 2008 2:30 pm ET

Auto workers getting to stay at work. Wall Street brokers getting to stay at work. Whom to choose...

What I hear when the Southern senators speak, "Give me some more sushi, bust the union, give me some saki, bust the union, I love WalMart, bust the union, paint my palm, bust the union, give more money to the Japanese, bust the union, give more money to the Koreans, bust the union, give more money to the Germans, bust the union. Did I mention WalMart? Bust the union.

Samantha   December 19th, 2008 2:18 pm ET

Dingell is really dingy. The pay cuts they have taken still give them much higher hourly pay rates than the vast majority of hourly workers in industries that are not asking the American people to bail them out with our money – money taken out of our paychecks in the form of payroll taxes.

If the attitudes don't change, there is no change, there is no future.

Dixon   December 19th, 2008 1:57 pm ET

Before I say anything I will say I am not an auto worker. I am in a management position in another field. Now, these auto companies didn't get to where they are by over paying the workers. The auto workers do make a decent wage and benifits. They are the people who are buying the products this country sells. You want to save these companies? Get rid of a few Presidents and Vice Presidents of whatever department they do what ever they do in at the big three and see the profits increase. The bonus' these people receive is out of control. I wonder what the Japanes pay their high end executives for the job they do. I wonder how they match uip in the numbers of executives the have on staff.

Alice Newman Center Harbor NH   December 19th, 2008 1:45 pm ET

""By bailing out automakers without real reform or long-term solutions, we are only protracting uncertainty and putting billions of tax dollars at grave risk."

Just change "automakers" to "Wall Street, Banks, & AIG" then you would have a statement of reality. This ship of fools got all their money without strings, without oversight: the CEO's still get their millions in salary and millions in bonus money: that's where our tax dollars are really going!

Ray Fisher   December 19th, 2008 1:38 pm ET

Fuel cells and in-house fueling stations in every dealership are the answer!!! Build them and the world will be at their doorsteps!!! We can provide jobs and starve the terrorists at one time. Think about it!!!

MK   December 19th, 2008 1:38 pm ET

I have nothing but disgust on hearing that the President allow the union workers to keep their wage levels until the end of next year. Why do I have to pay for these suckers and losers from Michigan? They have been overpaid for decades. And they still have the galls to refuse to accept the Senate's condition, even when they were told that their company will go bankrupt. They would rather have no job than less pay. LET THEM HAVE NO JOB! That's their choice. Why can't the President and the Congress grant them their wish!? The rest of the auto industry will wither and die any way, because we don't have money to buy cars (and even if we do, we don't buy those made in Detroit). We have to pay taxes to pay these blood-sucking union workers!!!!! They are dragging us all down to hell! They should go to hell themselves!

val599   December 19th, 2008 1:38 pm ET

Well The CNN Parrots have missed the boat again!
This BAIL OUT is just a method to pay the 30/60/90 Accounts Payable for the US Auto Makers, and keep the foriegn parts manufacturing Suppliers from going Bankrupt while they restructure, in Mexico, Taipei, Korea, India, China. Once they receive the money owed by the US Auto Makers, The auto makers can declare Bankruptcy and not have to pay it back.
March 2009 the end of the Payables ledger.
And then get rid ou the unionized labour in the US & Canada

Change - Yeah Left   December 19th, 2008 1:35 pm ET

Why should Union employees be given a break when non-Union employees all over America are being forced to make cuts?

If Detroit can turn around the shoddy manufacturing practices, inefficiences and stranglehold that organized labor has on the Big 3, then and only then is there a chance that they'll make it past the end of 2009.

However, I fully expect them to be Nationalized by the incoming socialist president; so it really doesn't matter other than the average Joe working to make a living at non-Union wages is going to be paying for Union perks.

I'm going to be getting a new car the end of next year, and right now I'm looking at Ford, or something that I know won't go belly up.

CNN do you dare post something that criticizes the Unions?

David   December 19th, 2008 1:34 pm ET

What's really sad is that so many 'Americans' feel obligated to fight against 'American' workers(your neighbors) and 'American' companies, while fully and openly supporting 'foreign' interests and companies. Americans will believe anything negative that relates to their own country and their own people with little concern for facts.

GM continues to be the leader in automobile sales world wide(#1 import in China), Toyota second, Ford third but first in overall safety, the most hybrid vehicles and tied with Toyota in quality, with Chrysler fourth in car sales. All other imports are only a fraction of even Chrysler's worst sales numbers. Just because they put the car together on American soil, does not make it an American product. The profits will ALWAYS go back to their home country.

Choosing to buy an import does not mean you must justify your purchase by becoming Anti-American. Your purchase is a choice, and having the freedom to make choices is what America is all about.

At the same time, while Americans are obsessed with the distraction of a $34 Billion loan to the auto industry, the Bush Administration gives Wall street over $300 Billion out the back door with no accounting where the money actually went, how it's to be used, or if it's still in America. BTW: Red States......don't forget your campaign slogan.....AMERICAN FIRST!

Lisa in Ga   December 19th, 2008 1:27 pm ET

I just want to know : since it is the taxpayers dollars that are bailing everybody out....... where's my cut!

Maggie Muggins From Selwyn   December 19th, 2008 1:25 pm ET

Can someone tell me why hourly rated union workers should decrease their wages to match the non union autoworkers instead of making the non union automakers pay the same as the union autoworkers.

It would seem to all that would be doing is making sure foreign manufacturers bring their standards up to those enjoyed by American workers instead of insisting on bringing down American workers standards to match those of the foreign manufacturers.

The only reason I ask is do Americans want to see their standard of living reduced to those in the foreign countries or see the other nations come up to American standards.

Joe the Democrat PA   December 19th, 2008 1:23 pm ET

We all learned the hard way from the undersight of Citi,AIG, and FM/FM
;however, President Bush took the necessary step to start reform of
the economic collapse, that was truly scrutinized by Congress, but,
fell short of honest deliberations. It was a pleasure to see our PA
Congressman Paul Kanjorski in action, not just deliberationg, but also
demanding oversight to justify compliance from the auto industry.

President Elect Obama can follow in President Bush's footsteps.
This has been obvious, in an early and bipartisan transition, Amen.

Anna   December 19th, 2008 1:21 pm ET

I think the Unions have had the auto companies over a barrel for years. This bailout just continues to allow them to be in control. Make the industry file bankruptcy and restructure. Too late...I wish I was one of those Chrysler workers who get a month vacation with 95% of their pay...It is absolutely unbelievable!!

facts are facts   December 19th, 2008 1:12 pm ET

Rise up America and revolt and take what you need from those that would take what you have.

GM Retiree   December 19th, 2008 1:10 pm ET

I for one am glad the government is stepping in, if GM were to go bankrupt, I would be one of millions of senior citizens that would need to go on welfare and possibly lose everything.

Dave   December 19th, 2008 1:09 pm ET

Dingellberry is an idiot! The GM salaried people have made "historic consessions" while the hourly rates have given up nothing!

Renee   December 19th, 2008 1:09 pm ET

Dear John Dingell,

Revisit this in a way that's fair to auto workers?!?! They should be happy with the bailout as it is or there wouldn't be jobs at all. The American workers, employed by overseas auto companies are happy with their jobs. No extra dough for those American workers. You oughta just be happy with the bailout as is and quit the whining. There are a huge number of other Americans who have already lost their jobs and where is "fair" in this equation? Why all the emphasis on auto workers when there are a huge number of unknown faces who have already taken cuts and layoffs, and nobody cares about them.

Ryan   December 19th, 2008 1:08 pm ET

So let me see if I can put this into perspective.

Americans are suffering

Americans are paying taxes

Big business is suffering because they make bad business decisions and the greed of the CEO's knows no bounds

Corporate coruption is out of control

Uncle Sam steps in to help big business using tax payers money

Americans are suffering and could benefit from having those tax dollars, that they paid from their hard earned salaries (probably getting much less than they deserve BECAUSE of corporate greed)

Business is suffering because of bad decisions and greed

Uncle Sam gives American tax payer dollars to businesses (after, of course, they fly to Washington on private jets)

Uncle Sam basically tells Amercians that they are responsible for their own actions and won't help them

Business is suffering because of corporate greed and bad decision making

But businesses get the taxpayer money

??????????????????????????????????????????????????????

I have to stop here. Because otherwise I'll just keep going in an endless loop. I don't get it. Can someone please explain to me how this works? My head us hurting because I just don't understand the logic here. All I can think of is if someone pulled up next to me in a brand new Mercedes Benz and asked for 5 bucks for gas because he spent all the money on the car. Crazyness.

Robert, Harvest Alabama   December 19th, 2008 1:05 pm ET

Banks went from loaning anybody money to loaning no one money; Wall Street has consistantly over inflated the price of goods through excessive speculation while adding no value to anything but personal bank accounts. Executives have received far more compensation than they are worth while the average US citizen have worked longer hours for less pay. When is this country going to stand up for the common man and demand accountability for those who have the power to ruin lives. When are our representatives and business leaders going to truly put American First?

S.B. Stein E.B. NJ   December 19th, 2008 1:04 pm ET

I wonder if Tom Price has car factories in his district. If he does, I bet they aren't any of the 3 from Detroit. I just hope that the strings attached to the LOANS get the review and enforcement to keep all of us from losing money on the loans.

Maybe GM and Chrylser will resume merger talks and merge into one almost as large slimed down company. They should slowly (over the course of 2 years or so) close down some lines like Hummer (who really is that stupid to drive that?) to reduce costs among other things.

President Obama   December 19th, 2008 1:03 pm ET

To Congressman Dingell:

NEWS FLASH!!!!!!!!!!!!!!!

American's AREN'T working. They are losing their jobs left and right. HELLLLLLOOOOOOO?????????

mb   December 19th, 2008 1:02 pm ET

I am sure the auto industry will restructure and make it better for all involved. Sorry the financial system was not put in the same position with more thought and restrictions for them.

Patrick   December 19th, 2008 12:59 pm ET

I hope everyone realized that Bush was NOT conservative when it came to fiscal issues. So if you like the job he's done economics wise than you have liberal fiscal views, if you don't you are conservative. I just don't want people to get confused by his Republican name. He is fiscally liberal, socially conservative, and foreign policy he is a neo-con for better or worse.

genek1953   December 19th, 2008 12:56 pm ET

Whether the "right" thing to do was to make the loans to the Big 3 or not make them and watch the companies die is probably arguable and will be for years to come, but it's mind boggling that it took Bush as long as it did to figure out that those were his only alternatives.

Robert, Harvest Alabama   December 19th, 2008 12:54 pm ET

Let's not forget that Wall Street is the problem! Wall Street's greed and poor management is the primary reason the auto industry is struggling–not the unions or the product!

beevee   December 19th, 2008 12:50 pm ET

I am glad that the president did not give into some GOP senators like Shelby resistance in bailing the auto industry out. At least once good sense prevailed.

beevee   December 19th, 2008 12:49 pm ET

I am glad that the president did not give into some GOP senators like Shelby resistance in bailing the auto industry out. At least once good sense prevailed.

Steve   December 19th, 2008 12:47 pm ET

What about me? My Tahoe is expensive to run, my 6000 square foot home is expensive to heat, my investment portfolio is returning terrible yields and my vacation home is losing value by the day...I need a bailout too. Where is the government when I need hand?

big3state   December 19th, 2008 12:46 pm ET

"R" : Abandoning sound conservative/free market principals and throwing away a trillion tax dollars may have been a bad idea, but I don't have the guts to do the right thing.

"D": We have the keys to the Treasury printing press, so let's throw multiple trillions at this decades old proven horrible business plan, and I'm sending the first coupla trillion to the UAW lest my next campaign war chest shrink.

Barry In Las Vegas   December 19th, 2008 12:44 pm ET

The UAW has to get real. 17 paid "Holidays" in addition to their regular vacation benefits. I don't know any other group of employees that have that many paid holidays.

The BIg 3 and the UAW deserve each other. They build cars that don't compete in the free market and the UAW demands, and the companies agree, to pay them fringe benefits they can't afford.

It will take a year, but two of these companies are going to go bankrupt and then get their house in order they way it should have happened now. We are throwing good money after bad.

BB   December 19th, 2008 12:39 pm ET

I voted in 2007 with my new car purchase – I bought a Toyota Camry Hybrid.

I shouldn't have my tax dollars spent on companies that make crap for cars/trucks.

SOMEONE PLEASE THROW ANOTHER PAIR OF SHOES!!!   December 19th, 2008 12:39 pm ET

When is the ordinary citizenry on the streets gonna get a bailout?

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