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Today's Nuze

SO THE AUTO BAILOUT IS DEAD ... FOR NOW

By
Neal Boortz
@ November 21, 2008 8:15 AM Permalink | Comments (22) | TrackBacks (0)

Do you think the taxpayers will end up bailing out the U.S. auto industry?
No, they're headed for bankruptcy city!
Yep, Congress will cave, and there goes our $!
Well the good news is that there isn't going to be an auto bailout right now. No surprise. Did you pay attention to these hearings in Washington? These auto company executives weren't even able to sit there and tell the Congress just how they would spend the money if it were actually given them! Are these characters serious?

"If we give you this money, just how are you going to spend it?"
"Well, we're not actually sure."
"Go get in your private jet and get the hell out of here."

The bad news is that one the Execs may be back in Washington in just a few weeks. Congress says that auto execs have failed to show the American people that this bailout would be the last. But there will be another chance. They are being given time to re-group and come up with a business plan to prove that this bailout will work.

Question: Do you think they'll fly commercial when they come back to Washington for their second bite at the apple?

Here's the plan: break the UAW contracts. These unions are crippling your business and you know it. You know that you are adding thousands of dollars to the cost of your cars because of outlandish union contracts. If you really want to prove to the American people ... after all, it is our money you are asking for ... that you mean business, do what you need to do to emasculate the unions. Stop allowing them to dictate your business model. If you can't even manage to do that, then there is no reason for any American, much less Congress, to believe that you are serious about restructuring your businesses.

Congress plans to reconvene in December to tackle the issue again. There are a few things that could happen. Congressional Democrats could be relying on the American people to lose interest. By December, you will be focused on Christmas and stuffed from Thanksgiving. At that point, will you still be as adamant about this auto bailout as you are now? I sure as hell hope so. Because unless these auto execs return to Washington (on freaking commercials airlines) and say that unions will no longer be dictating their business models, then let them fail.

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What others are saying

  • scott.ose@gulfaero.com
    Let them sink! I am sick and tired of the gov. using my tax dollars to bail out private industry.... period! The market will adjust.... and the average $ 78/hr. line worker will eventually secure a position somewhere else..... geez, talk about unions breaking a company's back.... reminds me of the Delta pilots...
    By Scott @ 11/24/08 08:48:52 AMreport abuse
  • Common Sense
    Could it be, or am I seeing things, that it's just a ploy for Congress to allow the UAW to push the Big Three out of business, like they did Eastern Airlines? I guess that the price you pay when people don't do things the way they want it: for their benefit, and our consequence.
    By Charles K. @ 11/23/08 02:39:05 PMreport abuse
  • insulting
    Look at the disparity in wages between failing and non-failing companies. Then, look at repair costs, customer satisfaction, reliability, and mileage. Financial trouble caused the big 3 to finally put out some decent vehicles, but they still rip-off on repairs. I detest dealership service operations. Maybe they can beat the rice burners there.
    The vehicles they tried to sell me for the past 30 years and their upkeep are absolutely insulting compared to the Japanese products. Bronco II? Vega? Those &*%$$y K cars? Trans Am? Omni? They were junk after 500 miles -- all of them!
    Let them try controlled bankruptcy to bust UAW contracts; and return to the quality of Pontiacs my grandfather sold. Get some bumper to bumper warranties for 120,000 miles thrown in.
    I've been saying this for 25 years in response to that patriotism line: When they get patriotic and build something I want, I'll get patriotic and buy what they're selling.
    By sammy4231 @ 11/22/08 08:20:54 AMreport abuse
  • Base closure and realignment
    So, it was ok to destroy communities by shrinking our military. But, we can't let GM fail due to the 'trickle down' job losses in support and supply industries.

    Wouldn't a few more soldiers have been useful over the past 5 years?
    By William @ 11/22/08 06:43:30 AMreport abuse
  • Wait a sec.
    How exactly are auto execs going to stop the unions? They can't! If they break the contract in any way, you get a grievance filed against them. If they try to change things unilaterally, the courts will tear them apart of failing to follow their contract. If they try to change things when the contract expires, the government will do everything possible to assure a successful strike. The only current way to stop this is to go bankrupt, where a bankruptcy judge can modify or eliminate a contract. And that's what they want to avoid.
    By BWM @ 11/22/08 02:25:12 AMreport abuse
  • bailout
    I'm not for bailing out the unions, but the American car companies have been at war not just with the foreign car companies, but with their governments as well.Besides blocking imports, in Japan and Korea, people have to pay a higher tax as their cars age, forcing them to buy new cars.
    By zippy @ 11/21/08 09:01:40 PMreport abuse
  • Who will buy their cars?
    Let's say congress bails the Big 3 out with the agreement that they make cars even more fuel-efficient or using alternative energy.

    That's all well and good but what if nobody wants to buy them or they are overpriced? Then what? I don't see a miraculous turn-around in the cards.

    Remember when Chrysler got bailed out in the 80s? Now here they are, hat in hand again to be bailed out. When does it end?

    And how about that media obsession with the CEOs coming in private jets. They should be focusing on what caused the automakers' mess and the roots of the problem rather than looking at such a superficial thing as that. It would not have been good if the CEOs missed the hearing because they got snowed in at Cincinnati or for some other unforeseen reason.

    The key to a bailout is to make cars that people will buy. Fact is, the Big 3 have failed for so long that the American public has given up on them.

    They'd have to build a car that runs on air and pumps gold out of the exhaust pipe for anyone to come back to them.

    No bailout. If they fail, they fail. One of the stronger automakers (Japanese?) will buy their plant assets if it comes down to it.
    By Dashawn @ 11/21/08 07:00:33 PMreport abuse
  • You Mean 'Union Bailout'
    Unfortunately the unions will most likely get their bailout. The big 3 will get cash but will still be running an upside down business model.
    David
    By LifeTrek @ 11/21/08 05:55:09 PMreport abuse
  • Auto Bailout
    Allow me to put this in another light.

    Most are saying "destroy the union." Very well, but WHO is going to LIVE in or around Detroit for 10 bucks an hour?

    After awhile you KNOW who will be working in these auto plants.

    Now, surrender some more ground.
    By Perspective @ 11/21/08 05:33:38 PMreport abuse
  • Corporate Jets
    The automakers already owned thier Jets. It is obvious how they would travel. What would they get for their jets from the time they reached DC and that afternoon or next day the congressional grandstanders finished with them. NOW the question? What means did nancy pelosi fly to Gay fransisco. Economy or Amtrak????????? Should I have added another means of transportation??
    By Don @ 11/21/08 04:05:26 PMreport abuse
  • auto bail-out
    I have been a loyal GM customer ever since I was 16. My big push was to be patriotic and pro-American. No more. My benefits package does not include free dependent care. You auto workers can do without if I can. If you can't, I then I guess you DESERVE to be unemployed. Take one for the team. Give a little. That is what your sainted leader expects everybody else to do with higher taxes, so you can pony-up also. The next time I go to buy a car or truck, I am going to buy something manufactured by non-union labor. The only manufacturers in America that are non-union were the ones we not-so-affectionately called "rice-burners." If you clowns are not going to look out for the rest of America, the rest of America is not going to look out for you.
    By Steve @ 11/21/08 02:36:32 PMreport abuse
  • Auto Bailout is in the bag
    Congress and Auto execs are just putting on a dog and pony show. Congress tells them to come back with a plan so it looks like they doing their duty and not writing a blank check.
    By Lumpy @ 11/21/08 01:16:59 PMreport abuse
  • Bailout
    Neal, THE High Priest of the Church of the PAINFUL Truth, The execs will fly, singularly, in their Corp Jets, hats in hand, in JANUARY when the Dems and BO are really driving the bus. They WILL get whatever they want, not because they will change a thing, but to appease the UAW. PERIOD.
    By Rick @ 11/21/08 12:39:45 PMreport abuse
  • Biding their time
    Her's how I see it: Congress is stalling until Obama is sworn and they have their new members. Then they will have the vote necessary to pass the bailout and a garaunteed signature from the new president. Does anyone else see these bailouts as the federal government moving toward Communism? With the bailouts the government will own or control more of our economy than ever before. Do you think for a minute that the liberals will ever willingly give that up?
    By Dave @ 11/21/08 11:42:53 AMreport abuse
  • (D) Sen. Nelson, FL
    Nelson was on CNN, I think, this am saying that whan they want to see in the plans from the auto industry are:1) new leadership, 2) restructuring, and 3) promises of fuel effeciency!!! Seriously? I mean they can't afford to build cars, PERIOD. It has nothing to do with their corporate structure -- it has to due with unions!!!! That is the great equalizer between us and the foreign market. But, God forbid, someone actually make the unions do something about it. Has anyone thought to ask union members if they'd rather have a union job that will dissapear or a non-union job that exists?
    By TDD @ 11/21/08 11:26:28 AMreport abuse
  • you don't get the spin
    You don't get the spin, the focus is on the jets for a purpose, the media here in Detroit is helping push the jet thing so to deflect the issue of salaries. In fact Wagoner and his equals refused to discuss any salary cuts for the people at the top. Wagoner's comments were that he already cut his salary by 50% so this year he will clear more than $10M from what we heard.

    IF these guys were passionate about seeing the success of their companies, than they would set an example. But because they don't want to work for a buck a year and no bonuses or stock options, it reflects their contempt for us, the taxpayers who will foot the bill. Don't forget, these guys ran the companies into the ground to begin with.
    By Greg s @ 11/21/08 11:16:45 AMreport abuse
  • Auto Bail Out
    How about getting the government out of the car business altogether. GM might be doing much better if the CAFE standards imposed by the all-knowing Congress had not prohibited them from making and selling their most popular (and most profitable)vehicles and forcing them to make stuff no one wanted.
    By GTJohn @ 11/21/08 11:15:17 AMreport abuse
  • GMAC
    In fact, GM's financial arm, GMAC applied recently and yesterday got "holding company" status. This makes them eligible for part of the $750 billion from Oct. So in reality they did get their bailout. Also, another interesting item about this is that at the auto show in LA they are calling the Chevy Malibu the "Camry killer" because it gets better fuel mileage and is supposed to be more reliable. Car experts are saying that GM is building the best cars they've ever built.
    By Jim @ 11/21/08 10:38:49 AMreport abuse
  • Contracts
    You say: "Here's the plan: break the UAW contracts."

    So that means if your employer thinks you are too expensive in this economy, Neal, that they should just go ahead and break your contract and assign you a smaller salary?

    Yeah. I thought so.
    By Hugo's ghost @ 11/21/08 10:13:07 AMreport abuse
  • Pot calling kettle black
    Although the CEOs deserved the gripes about private jets, one appropriate reply would have been for a CEO to ask the panel how many of them flew commercial, economy.
    By Elmo @ 11/21/08 09:53:59 AMreport abuse
  • Nothing new under the sun
    I just read an article at the Heritage Foundation website about the FIRST auto bailout. Remember? 1979? Lee Iacocca? It makes VERY interesting reading. Find it here:
    http://www.heritage.org/Research/Regulation/bg276.cfm

    Santayana was right. Apparently the Congress doesn't learn from history.
    By Horace Brock @ 11/21/08 09:14:02 AMreport abuse
  • Ford Assembly Plant in Brasil
    Watch this video; and pay special attention the final comment at the end.

    http://info.detnews.com/video/index.cfm?id=1189

    Let's not bail out the UAW!!
    By DUTCH @ 11/21/08 08:53:24 AMreport abuse
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