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 ...
Yeah! We really need to pay for union workers health care. What a crock of BS.
Absolutely, other freepers bash the union guy trying to raise a family with a mortgage etc. This guy makes no where near what some anti-union types think. Yet, they think, it's ok for the CEO of a failing company to rake in the money. The guy is a failure and should be fired! You are also correct to view this as an assault on the middle class.
If enough American comapanies go under, you will be paying for everyone's health care ie national healthcare.
There has been plenty of mismanagement. However, I do not believe the best management can address global policies which destroy American business-policies which give preference to foreign companies actually.
Going to be a big political issue. The results will be a crucial moment.
I know lots of those people, am one, and wish that the good would not have to go down with the bad. The bad are everywhere top and bottom.
I hate to be the one to break this to you but the United States has been bankrupt for a very long time. We are just printing money against debt instruments issued by the Federal Reserve (A private bank) against the United States government (thats you and me). Some day those dollars will have to be repaid. And it will be on the backs of our great grandchildren.
Small gas efficeient cars like the Geo sold badly-very badly. You couldn't give away small cars for years! SUV's ruled the market.
See CAFE Overview - Frequently Asked Questions
Most European manufacturers regularly pay CAFE civil penalties ranging from less than $1 million to more than $20 million annually. Asian and domestic manufacturers have never paid a civil penalty.
The situation is getting critical. Your comments are very appropriate. Imagine a guy getting $10 and hour paying for UAW pensions of $4,000 a month and full health care, maybe another $1,000 worth.
Got to leave, will answer everyone after mass.
The Japs develped such cars via Japanese government subsidies.
Nope. My first new car was an American car and it was a piece of s**t. There were way too many problems with it to do anything other than blame, at least in part, the workers who assembled it. Have you ever hired contractors to do work in your home and been frustrated because you had to stand and watch them do the work and they STILL did a slipshod job? If so, were you frustrated and angry because you were left with a substandard result because they thought ONLY about getting their money for as little as possible? It's the same feeling when you spend $20K-$30K on an American car. I've bought Hondas ever since and the latest one was built in Ohio. They've been great! I'll never go back.
There are 'foreign' autos being manufactured right here in the USA with American workers. How is it that they are making money and the old line automakers are not successful?
A very good point, You can't tell me that an exec that makes 100 times more than the average worker makes, for even poor performance is fair. I don't care for Unions but I will say this, they would rather see a company go bankrupt than to see their workers give up more and more benefits and compensation and the company just ships jobs to China anyway.
UAW?
Talking about someones needs, really doesn't mater. He is trading what he brings to the table for what the buyer has to offer. If the buyer does not benefit from the purchase, what sense does it make for the buyer?
Would someone go to a Mom and Pop shop and buy a $40,000 item just because the store owners seemed like nice folks and had needs?
If unions want to organize and sell their labor as a package, that is fine the buyer of the package should be able to chose between competing service providers, and no service provider should be given a government granted monopoly.
This is ridiculous!
Name ANOTHER business that SCREWS up and has OUR government bailing them out.
They deserve the SAME fate as other businesses that screw up - go out of business or sharpen up in business.
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