Comments on: Where the rubber meets the road – Automakers, welcome back to Congress

By: Herb

Herb — Fri, 05 Dec 2008 12:48:22 +0000

Do all media people have amnesia or are all of you just not informed. There is no substitution for oil and gasoline if American car companies keep making cars that run on petroleum only. What we need are plug-in hybrids that get at least 60 miles to the charge. And I am talking Suburban’s here. The technology exists. Just like all electric cars which also may be part of the solution. In 1997 the state of California mandated that electric cars be sold in the state. General Motors produced a wonderful car, the EV1. But they would not sell to the public. They would only lease it. Then the auto companies sued the state so they could stop building them. Because they felt that they were against their long term interest. The thing that makes plug in hybrids the key is that we can plug our cars in at night and still have the confidence that if we need to take a trip we can still fill her up. But the country’s need for petroleum will be drastically reduced.
And that leads us on to alternative fuels. If we are building plug-in hybrids and the average person is now only filling up once a month or less. Then alternative fuels then make sense because we need much less fuel and the cost will be low because of lack of demand. And drill baby drill can be turned into grow baby grow.
The big car companies are asking for a bailout right now. We should give it to them, but only if they agree to start making these automobiles their new fleet. And again tax breaks and low interest loans for the consumers, along with the car companies agreeing to produce affordable models for the average person to be able to enter the market.

By: Raechel Daniels

Raechel Daniels — Fri, 05 Dec 2008 12:03:03 +0000

Congress & America was sold on the $700B bailout because "industry" needed those funds for operating purposes on a day to day basis.

Shouldn't the Big 3 Automakers be tapping in on THAT money - or is there "double dipping" going on here?

By: Pearl Pfiester

Pearl Pfiester — Fri, 05 Dec 2008 10:03:06 +0000

GM made an electric car, EV1, in 1996 because of a mandate in CA for greener emissions. Claiming there's "no demand", GM TRASHED the brand new cars and technology despite Americans begging to buy their leased EV1 car.

Watch: "Who Killed the Electric Car?"

These companies made their bed so they can lay in it. "What comes around, goes around". Let's invest in companies who utilize technology instead of hiding it.

By: Dr. Marcus

Dr. Marcus — Fri, 05 Dec 2008 09:06:26 +0000

Detroit has driven America to the brink of disaster. Most of our current problems can be traced to what Detroit has, and hasn't done.

Firstly, back in the 1970's Detroit should have taken the lead in developing new technologies which would have freed America's hostage-like dependence on oil. They should have set about going into R & D on electric cars and superior batteries. This would have created a lot of spin-off businesses and technologies just as the APOLLO program did, as well as brand new manufacturing sectors. Wind power, photo electric batteries, solar, thermo– would all be better off today if Detroit had done any strategic planning back in the 1970's and 1980's. Instead, they continued to invest and put their energies into old, failed, business models and production for their own selfish short-term profit.

Secondly, had Detroit done what was suggested above, it would have created more new industries, products, jobs and research work for Americans at home, thus creating real wealth.

Thirdly, Detroit's gas guzzling cars require oil. Lots of it. Our US dollars left America to buy that oil, and in the process built up Middle Eastern Countries which are now hostile to us. Because of the scramble for oil, money, power, and influence in the middle East, unstable and dangerous situations have developed. If America did not need their oil, how would Khomeini, Ghaddafi, Saddam, and Osama bin Laden have arisen? These oil rich countries fund terrorism and have an anti-American/Western agenda, do they not? Now, we suffer terrorism in our own country. Gee thanks Detroit!

Fourthly, Detroit's history of recklessly selfish and short-term actions have put the American dollar and economy in peril as discussed above.

The American people should NOT be expected to reward those who have caused our country so much harm and are making us miserable.

I hope that more people can "connect the dots" and see what an awful position Detroit has put us in.

NO! TO BAILING OUT THOSE WHO HAVE HARMED AMERICA!

By: Vj Piarulli

Vj Piarulli — Fri, 05 Dec 2008 08:42:48 +0000

The bailout to banks is planned to cost us about 750 Billion Dollars.
Multiply about 75 million American families x $10,000....that's the same amount. What if the Treasury placed a 750 Billion Dollar purchase order with the American automakers to produce and deliver 75 million 50 MPG (Prius like hybrid or electric) high quality vehicles at a price of $10,000 each. The Commerce Department would then proceed to offer these these vehicles "free" to any tax paying family household purchasing any new American car at any price. Which of these plans....the bank bailout or the super car giveaway would be best for the economy. They both cost the same. But it is completely obvious that only the car deal would be certain to jump start the economy, create new jobs, and cut National fuel consumption by 30 or 40%.

By: J.V.Hodgson

J.V.Hodgson — Fri, 05 Dec 2008 07:00:04 +0000

In any business the timing of decisions and actions is a key criteria of success.
The endless to and fro congress and Bush ( Pelosi/Bush) wastes time we do not have.
The $25bn was for Eco cars and research. Why will it take Chrysler GM and Ford till 2011 or 2013 to get these on the road if they use the $25 billion allocated for that? Nonsense, use it for what was intended.
The current language of emotives like "bailout" "slashing labour costs" ( probably means labour redundancy as opposed to cutting labour cost to competitive levels which is the real need) "bankruptcy" should be replaced with "Loans or repayable bond holdings or shares" ,"Competitive labour agreements both for now and in future" and Bankruptcy by "corporate re-structuring" or a "planned and managed bankruptcy" government backed and supported.
Trying to or linking eco car development and corporate re-structuring is not a commercially viable solution they are separate but necessary components of the longer term competitiveness of an essential industry to the US economy.
The political ideological debate is taking time not available and will only increase th cost ultimately. The debate about where the money should come from is a fascile debate as long as anything given is a lending or investment in bonds or Shares, both of which will be more secure if the needed re-construction, amalgamation, or restoration of competititive abilty is a success.
Medis play your role, demand a plan from Republicans and Democrats, and the Obama transition teams alike and demand they stop the gridlock in the interest of the good ole USA and its people.
Regards,
Hodgson.

By: Jerry Culberson

Jerry Culberson — Fri, 05 Dec 2008 06:49:24 +0000

The Big U.S. Oil Companies made over 100 BILLION DOLLARS this year alone, and even more in 2007; why have not offered to make loans to the Big 3 Auto Companies.

Since they feed off one another, why not help one another ?

A 35 Billion Dollar Loan would be only about 3 months earnings for BIG OIL.

By: Ron Severini

Ron Severini — Fri, 05 Dec 2008 05:51:44 +0000

Since we all seem to be between "Barack and a hard place", here's an idea.....

The U.S. Treasury prints up $35 Billion Dollars worth of Holiday Season GM/FORD/Chrysler "GIFT CERTIFICATES" and disperses them to everyone that has or will have their home foreclosed. This way, we'll know how the money will be spent, the auto workers can still make cars and their paychecks, and people that have or will have lost their homes will, at least, have a car to drive to the poor house.

The GM CEO "HAS" to resign!

Personally, soon my wife and I will no longer be able to make payments on the vacant building lot that we purchased in Las Vegas to build our American "Dream House", as we've now lost all the equity in our existing home in Florida. We're also going to the poor house now, but we'll be driving there in our old Porsche!

We called our Mortgagor, Bank of America yesterday, and pleaded for help. They would NOT modify, nor refiance our vacant lot loan at all.

Please, NO Bail Out! ... and please make someone give the American people a full accounting of where ever penny is, that was given to the banks!

How and when do we get bailed out?

By: carolyn

carolyn — Fri, 05 Dec 2008 05:19:17 +0000

I am amazed at the statement presented by Shelby of Alabama. I don't think he speaks for all Alabama residents, because I am a Alabama native, too. I really think that what the automakers are asking for is help, sure paycuts would probably help, but at least the company may remain viable. How many of us need help? Probably everyone. By the way how many of the members of congress or senate would work a year for a dollar, and how many of them drive to Washington? Call for a show of hands. I want to see the United States be prosperous and it is time more jobs stay at home. Without business there would be no jobs, no insurance, no food and when you get to it there will be massive poverty, conflicts, more crime. I have a 1998 ford and a 1990 GMC and they are still going.

By: Nelson

Nelson — Fri, 05 Dec 2008 05:04:14 +0000

Sec. Paulson made sure that his buddies were taken care of, and the Dem. also made sure that their tracks were covered by their lack of oversight on all those bad loan deals made, but when it comes to Americas Industrial capability to support it self against all enemy's foreign or domestic, it seems too many of it's citizens are too blind to see that, America continues to Crumble from with in.

By: Shar

Shar — Fri, 05 Dec 2008 04:54:41 +0000

Anderson

AIG wasted so much money and the Banks that are given money use them to get bigger so take money from the Banks and AIG and help the Auto Industry so the workers will not loose there jobs. Help "Main Street"

By: Skip McDaniel

Skip McDaniel — Fri, 05 Dec 2008 04:37:13 +0000

I listened to most of the questions and answers today and found it most disturging that none of the questions mentioned the new assembly plant in Russia that was recently opened. There were many russians employeed. Where did all the money come from to build and start it up? How come the congressmen did not ask "WHY"?We the tax paying public are being serviced the way Will Rogers' dads' prized bull serviced his clients cows were serviced. It is time you in the news media dug deeper and found out more of what is going on. The CEO of Chrysler almost drove The Home Depot into the ground before the was dismissed with one hugh monitary package. Chrysler has already been bailed out once before, some of the members of Congress was present when this took place. Granted the money was paid back. I am not in favor of my money going to pay for the BIG THREE. Is there going to be a block on the 1040 to check "NO"?

By: Chris

Chris — Fri, 05 Dec 2008 03:03:34 +0000

Wow who could imagine stepping back a few decades that something as all american as the cars that we build could see the problems that they face today. Is it poor planning, is it an over confidence from our american ego or just plain greed???? My guess is a whole lot of all of the above.

I help manage a small specialty vehicle manufacturing facility. We as managers came together about a year ago and recognised that with a weak economy in our future our sales would suffer. At that time we figured out to produce less with less people (a small layoff) yet remaining at a REASONABLE profit level...it has worked out well for us.
Now none of us make 23 million a year but dont you think somebody in one of the auto makers organization could figure out a similar plan a long time ago.
If the government decides to get involved, which I hate to see, why not do it in the form of a substantial tax credit. A 50% of the purchase price tax credit or something. I would think that this would stimulate sales, open a bit of the credit market, the government is not putting out money up front and some money would be injected into the economy. Handing out money is just not the answer!

Thanks

By: Ardo

Ardo — Fri, 05 Dec 2008 02:53:00 +0000

This is not a question of bailing out the automakers, but a question of insuring that the US economy doesn't fall into a deeper recession. It is now a question of survival. With high unemployment and an uncertain future, the last thing the economy needs is millions of "fresh" laid-off workers. This industry must survive for the economy to recover and confidence to return. There's no choice!!

By: nichole

nichole — Fri, 05 Dec 2008 02:47:42 +0000

I am sick and tired of hearing everyone complain about bailing out the auto industry and no one is saying anything about all the other financial companies that were basicallly handed billions with no questions asked ???? AIG, Citi, the mortgage corps. So why is the auto industry now taking all the heat ? Correct, this country was not founded by those who build cars, but the economy sure was ! the automotive industry and the unions had a huge impact on making the American economy a world leader – and that auto industry that everyone wants to fail so badly currently supports 3 million plus American's jobs -

By: Andrea

Andrea — Fri, 05 Dec 2008 02:43:57 +0000

I am so tired of hearing about the bailouts to the BIG people. What about the little people? I think a better use of the bailout money for AIG and the Big Three Automakers would have been to give $1 million dollars to all citizens 18 and older (approx. 228 million – population that has debts) and we would have spent considerable less money than the 85 BILLION and now 35 MILLION. Sure, some would squander away the money like AIG, but many would use it wisely – thus paying off their debts to the BIG people – putting money in pockets of he BIG people and freeing the little people of debts at the same time AND saving the US a ton of money.

By: Jay-nyc

Jay-nyc — Fri, 05 Dec 2008 02:15:39 +0000

I would bail out the auto industry under these conditions:

Gov. takes control of industry for 4 yrs.
Fire all 3 greedy leaders-promote from within
Limit bonuses to 5%-10% for top officials
Sell all planes-Business Class/Black car services
Reduce salaries across the board by 5%-forego merit increases
after all this is a recession.
Produce fuel efficient/hybrid cars-compete with foreign imports

Another area desperately needing a bailout is UNEMPLOYMENT LIMITS. This period should be extended to at least one to two years. The econonmy is not going to reverse in two years – No one seems to care about this term limit.

By: John D Conley

John D Conley — Fri, 05 Dec 2008 01:56:22 +0000

We can give the financial markets a blank check and they don't have to account for what they do with it. It was suppose to free up credit, but it hasn't. They are holding on to it so they can buy up more banks or give their executives more bonuses. Let the Detroit three go down the drain and see how deep this depression will take this country. They are LOANS not free money like they gave the banks.

By: Al

Al — Fri, 05 Dec 2008 01:54:20 +0000

While all of this is going on with the Automakers begging for millions or else face catastrophyc consequences, can some one please tell the President elect he can no longer vote present and offer his opinion on what he think should be done after all, the decisions of the next 47 days, will impact the next 4 years of his presidency or, is he just going to spend the next 4 years continuing to blame the previous president for all of the things which will continue to go wrong in America?
It seem to me that the Democratic Party have become accostumed of doing so even when they have had a majority, barely, for the last 2 and one half years.

By: Michael Carruth

Michael Carruth — Fri, 05 Dec 2008 01:41:25 +0000

There is great opposition to lending TARP money directly to the Big 3. My question is: Why can't the treasury loan TARP money to a bank, with whom the respective automaker already has existing credit facilities, and have THEM loan it to the Big 3 in a normal financing transaction?

Afterall, the whole point of the $750B TARP was to unfreeze the credit markets...and the CEOs are saying they need a direct bailout because nobody will lend to them. This seems to be a way to ensure that the spirit of the TARP is preserved and, at the same time, that funding is available to automakers, but is structured as financing, not a direct payment.

Respectfully,

Michael Carruth