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View Full Version : President Bush: Automakers to get $17.4B



kwame k
12-19-2008, 09:28 AM
WASHINGTON – The Bush administration came to the rescue of the U.S. auto industry Friday, offering $17.4 billion in loans in exchange for concessions from the deeply troubled carmakers and their workers.

"Allowing the auto companies to collapse is not a responsible course of action," President Bush said, citing danger for the entire national economy as well as the carmakers. Bankruptcy, he said, would deal "an unacceptably painful blow to hardworking Americans" across the economy.

One official said $13.4 billion of the money would be available this month and next, $9.4 billion for General Motors Corp. and $4 billion for Chrysler LLC. Both companies have said they soon might be unable to pay their bills without federal help. Ford Motor Co. has said it does not need immediate help.

Bush said the rescue package demanded concessions similar to those outlined in a bailout plan that was approved by the House but rejected by the Senate a week ago. It would give the automakers three months to come up with restructuring plans to become viable companies.

If they fail to produce a plan by March 31, the automakers will be required to repay the loans, which they would find very difficult.

"The time to make hard decisions to become viable is now, or the only option will be bankruptcy," Bush said. "The automakers and unions must understand what is at stake and make hard decisions necessary to reform."

Bush's plan is designed to keep the auto industry running in the short term, passing the longer-range problem on to the incoming administration of President-elect Barack Obama.

The White House package is the lifeline desperately sought by U.S. automakers, who warned they were running out of money as the economy fell deeper into recession, car loans became scarce and consumers stopped shopping for cars.

The carmakers have announced extended holiday shutdowns. Chrysler is closing all 30 of its North American manufacturing plants for four weeks because of slumping sales; Ford will shut 10 North American assembly plants for an extra week in January, and General Motors will temporarily close 20 factories — many for the entire month of January — to cut vehicle production.

Bush said the auto manufactures have faced serious challenges for many years: burdensome costs, a shrinking share of the market and plunging profits. "In recent months, the global financial crisis has made these challenges even more severe," he said.

The president said that on the one hand, the government has a responsibility not to undermine the private enterprise system, yet on the other hand, it must safeguard the broader health and stability of the U.S. economy.

"If we were to allow the free market to take its course now, it would almost certainly lead to disorderly bankruptcy and liquidation for the automakers," he said.

http://news.yahoo.com/s/ap/20081219/ap_on_go_pr_wh/meltdown_autos;_ylt=AgbNCsqdoxgoRwJtZCfTzteyFz4D

Va Beach VH Fan
12-19-2008, 09:43 AM
I'm interested to see what kind of deals GM is going to be offering in the next several months...

I've had my eye on the new Camaro, which will be hitting the lots in the spring, but obviously this shit makes you take a step back....

kwame k
12-19-2008, 10:16 AM
OK, I understand the rationality that no one will buy a car from a company that may not be around but.........who said they wouldn't be around?

I don't see the Big 3 doing any better by March.....with banks not lending and people not having the disposable income or extra income, the outcome looks bleak for new car sales.

What I do see happening is the living wage dropping, the middle class becoming the working poor, and this country losing it's competitive edge here and abroad. Yes, the car companies deserve to fail and if anyone of us ran a company like they have we would fail. Yes, wages were out of control and the products were inferior. The unions are going to give in to all the Big 3's demands, just to save themselves, and the taxpayers are, yet again, footing the bill. I don't see how the unions are going to stop the Big 3 from closing factories, massive layoffs, and lowering salaries/benefits. In the long run the companies will be stronger and competitive but the days of making a decent living and retiring from one company are over.......

Say what you will about Ross Perot but he was right about NAFTA and yes, we all know who signed it into law......
The systematic destruction of all of our industries is nothing more than the destruction of the American Dream......wages for the workers have not increased in how many decades? We are more productive and work more hours for less.....we still have the best and the brightest here but nowhere for them to go.

At least I can sleep at night knowing the Executives are making millions and no repercussion for mismanagement will ever come about. It gives me hope that someday I can run a huge company into the ground and get millions of dollars as my reward.

American manufacturing is dying and when it's gone we have lost our edge......if we ever get in a Real War we will not be able to produce the items necessary to win......we are going backwards....we used to be the greatest exporter of goods, held debt/gave credit to other countries, and were the greatest importer of raw materials......we are now doing the exact opposite........

We are fucked.......the two things that made the US great........farmming and manufacturing are looking like a thing of the past. How anyone thinks that going from a manufacturing based economy to a service based economy or whatever else will fill this gap is the direction that this country needs to go.........is a good thing. We can not get our goods to other countries because of unfair trade practices. China is a good example of that. The massive amount of debt that America has will have one benefit.........we'll bankrupt one of the last bastions of Communism.......

Steve Savicki
01-17-2009, 08:22 PM
http://i616.photobucket.com/albums/tt248/mrfocker/Hey_Mo_Fo.png[/QUOTE]

LoungeMachine
01-17-2009, 08:35 PM
That's 3, Stephanie.

I see you put the FART in RothFart.

retard.

:gulp:

hideyoursheep
01-17-2009, 11:06 PM
http://i616.photobucket.com/albums/tt248/mrfocker/Hey_Mo_Fo.png[/QUOTE]


What's your fuckin' problem, sweetheart?

hideyoursheep
01-17-2009, 11:13 PM
Anyway, the Kwam is right.

The economy is so shitty, the only people getting loans are the ones in line at congress.

It will not do any good to bail out an auto company if they don't sell anything. It will only keep them on life support for a few months.

The workers at both the big 3 and all their suppliers are screwed without some sort of movement in the sales dept.

I'm looking at the new Challenger....but who wants to make a commitment like that when you don't know if the layoffs are coming soon?

Blackflag
01-18-2009, 12:10 AM
China is a good example of that. The massive amount of debt that America has will have one benefit.........we'll bankrupt one of the last bastions of Communism.......

That ain't gonna happen...it's not even really possible. China has the assets, and China holds the debt...not vice versa. I wish it were true, because you know I fucking hate China. But they hold the cards.

Satan
01-18-2009, 12:28 AM
Anybody who wants a perfect illustration of why the US needs unions to remain strong, and indeed return to where they were before Reagan/BCE in 1980 need look no further than the NYC water landing the other day.

When a plane crashes and nobody ends up in Hell, the Devil takes notice. And what I noticed was a skilled union pilot and union flight crew doing what they were trained to do. Just imagine if a Wal Mart style operation had been running that flight. It would have been a busy day in immigration for me.

Satan T. Devil
Fallen Angels Union Local #666
Hell