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Automakers Are Lining Up Aid, But Just Don't Call It a Bailout
The Washington Post ^ | 12-4-2005 | Jeffrey H. Birnbaum and Sholnn Freeman

Posted on 12/04/2005 5:27:49 AM PST by Iris7

Troubled U.S. automakers and their allies on Capitol Hill are seeking billions of dollars in aid from the federal government ranging from health coverage for their workers to extra tax write-offs for themselves.

They're also asking for one rhetorical favor: Please don't call the requests a bailout.

"I don't view it as a bailout," Sen. Carl M. Levin (D-Mich.) said.

"We're not looking for a bailout," agreed William C. Ford Jr., chairman of Ford Motor Co.

The "B" word has been taboo ever since Chrysler Corp., faced with impending insolvency, sought and narrowly won $1.5 billion in loan guarantees from Washington in 1979 and 1980. The company eventually borrowed $1.2 billion and repaid the loans in 1983, seven years earlier than was required.

Nonetheless, the notion of the American taxpayer saving a company with a large and quick fix has pretty much gone out of style and has not been repeated since, with the exception of loan guarantees to airlines after 9/11. Even though General Motors Corp. and its rival Ford Motor now face serious financial straits, both are studiously avoiding public condemnation by spreading their aid requests widely among many types of government policies.

Taken together, however, the components of their wish list would cost tens of billions -- far more than Chrysler ever dared to seek.

(Excerpt) Read more at washingtonpost.com ...


TOPICS: Business/Economy; Culture/Society; Government
KEYWORDS: automakers; delphi; detroit; diamlerchrysler; ford; generalmotors; uaw; unitedautoworkers
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Building an auto ping list, let me know if you don't want on it.

The plot thickens. I am employed by a large corporation that makes vehicles.

1 posted on 12/04/2005 5:27:50 AM PST by Iris7
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To: Iris7

Close the doors and make their cars in China. Unions have ruined the companies. Dump their pension obligations on the tax payers.


2 posted on 12/04/2005 5:30:31 AM PST by cynicom
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To: Iris7

Is this when we nationalize their retirement plan? Who is going to bail out the US when we go bust?


3 posted on 12/04/2005 5:30:48 AM PST by ARCADIA (Abuse of power comes as no surprise)
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To: Iris7

Well you might want to pass on building better cars at affordable prices is a good place to start.


4 posted on 12/04/2005 5:31:09 AM PST by Tarpon
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To: Iris7
Please don't call the requests a bailout.

Snort. Shades of Louisiana.

5 posted on 12/04/2005 5:31:10 AM PST by mewzilla (Property must be secured or liberty cannot exist. John Adams)
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To: Iris7

My husband works for GM in Doraville. I am sick of the auto company bashing that has gone on around here. Please ping me.


6 posted on 12/04/2005 5:32:02 AM PST by nyconse
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To: cynicom

Union or no union, companies can save money manufacturing in countries where workers are abused and slave labor encourage. It could take plenty of non-union jobs as well.


7 posted on 12/04/2005 5:33:07 AM PST by nyconse
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To: Iris7; voletti; flashbunny; libertarianPA; gathersnomoss; GaltMeister; TonyRo76; jw777; ...

Think you folks may like this one. Politics intrudes, and intensely.


8 posted on 12/04/2005 5:33:39 AM PST by Iris7 ("Let me go to the house of the Father.")
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To: Iris7

If Ford, the Ford family and its unions stopped propping up high taxing democrats and rinos, the ACLU, every 527 liberal group and cause, they would have the money to invest in the company.


9 posted on 12/04/2005 5:35:04 AM PST by stocksthatgoup (Polls = Proof that when the MSM want your opinion it will give it to you.)
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To: Iris7
Let Kerry get on the bandwagon. He can explain why it was a bailout before it wasn't a bailout.

OF COURSE IT'S A BAILOUT

10 posted on 12/04/2005 5:35:09 AM PST by OldFriend (The Dems enABLEd DANGER and 3,000 Americans died.)
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To: nyconse

Are you suggesting that there has been no mismanagement?


11 posted on 12/04/2005 5:37:01 AM PST by OldFriend (The Dems enABLEd DANGER and 3,000 Americans died.)
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To: Iris7

Please add me to your ping list.. thanks..


12 posted on 12/04/2005 5:37:09 AM PST by ken5050 (Ann Coulter needs to have children ASAP to pass on her gene pool....any volunteers?)
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To: Iris7
I am employed by a large corporation that makes vehicles.

Ditto, add me to your list, thanks

13 posted on 12/04/2005 5:37:21 AM PST by apackof2 (You can stand me up at the gates of hell, but I won’t back down)
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To: nyconse
I make light of the situation...Why??? Because it is a never ending trend. I fear one day there will be few people left in the American middle class.

The CEO of GM has a new pension of $4.5 million a year. Now that Union I would like to join.

14 posted on 12/04/2005 5:37:32 AM PST by cynicom
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To: nyconse

Took me a minute, had a bad screen name on my list, but you should be getting a ping by now. If you want to post to my list email me and I will send it. It will cost you, though. If you get some good screen names not on my list pass them on! I'll do the same for you. We better do the same with folks that want off our list.


15 posted on 12/04/2005 5:43:00 AM PST by Iris7 ("Let me go to the house of the Father.")
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To: Tarpon

Well you might want to pass this on to our dear elected officials. Try loosening government regulation (Osha, minimum wage etc), try forcing foreign countries to trade fairly (which means ending government subsidies to European and Japanese comapanies-yeah they get government handouts which allows them to sell cars cheaper and force these countries to allow the agreed upon number of American cars in their markets) and finally quit raising or threatening to raise cafe standards which forces car companies to put their dollars into increasing gas mileage rather than design and quality. Japan and Europeam car manufacturers do not have to meet mileage standards. Perhaps our government-including the GOP could stop undermining American companies while forcing us to compete with the bowl of rice crowd in Asia.


16 posted on 12/04/2005 5:44:04 AM PST by nyconse
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To: Iris7

Following on the heels of a third-quarter loss of US$284m, Ford plans to cut 10% of its North American white-collar workforce. This would translate into 4,000 jobs being axed, the majority of which would occur in the first quarter of 2006,


17 posted on 12/04/2005 5:44:06 AM PST by stocksthatgoup (Polls = Proof that when the MSM want your opinion it will give it to you.)
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To: Iris7

Thanks, I will do so! I appreciate it.


18 posted on 12/04/2005 5:44:47 AM PST by nyconse
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To: Iris7

Even the "poorest" Michiganian to make the Forbes top 10 list, William Ford Sr., has a net worth of $1 billion. Ford is the family patriarch presiding over the Ford Motor Co. and the owner of the Detroit Lions.

If this guy can't manage to put a football team on the field, why should we trust him with taxpayer money?


19 posted on 12/04/2005 5:46:22 AM PST by stocksthatgoup (Polls = Proof that when the MSM want your opinion it will give it to you.)
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To: cynicom
Don't blame the workers. They built the cars that the leadership told them to build. Its the leadership thats been collecting huge bonuses the past 10 years for pushing gas hog trucks and cars. Letting the vast opportunity of fuel efficient cars and new technology go to leaders like Honda and Toyota. People may as well realize that after we we though this gas crunch (if we do) there will be another one some day. Learn a lesson, don't get complacent.
20 posted on 12/04/2005 5:46:40 AM PST by Racer1
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