Nancy Pelosi announces her support for automaker loans

Motor Trend ^ | 9/10/2008 | Scott Evans

[markomalley]

Detroit received some good news from Washington today. House Majority Leader Nancy Pelosi said today that she will support the $50 billion in loans that the Detroit Three have been pushing for and the U.S. Department of Energy announced that it has begun writing the rules as to how the money will be lent, the Detroit Free Press reported today.

Michigan's Congressional delegation has been pushing hard to get the loans through Congress, hoping to get a timely approval that would allow the automakers to begin borrowing money by the end of the year.

Nevertheless, there are still numerous sticking points and although the proposal picked up key endorsements today, nearly all of the details are still fluctuating. Everything from the size of the loans to how they could be spent to how they would be paid for is still up in the air. Today's announcements will let Detroit breathe at least a small sigh of relief, however. Yesterday the industry was considering scaling back its requests to the original $25 billion that was approved last year but hasn't been paid for yet.

The industry's biggest concern is the Senate, which blocked funding for the original $25 billion last year. The Senate has much more power than the House to block funding, and the loans appear to have less support there right now. Also hampering the auto industry's ambitions is election year politics. Opponents have characterized the loans as a bail-out for domestic automakers who didn't plan ahead, while record deficits and a sour economy are on the minds of voters, not to mention politicians up for re-election. A funding source for the loans still hasn't been determined and could easily become embroiled in larger budget arguments. Still, Pelosi is confident that the loans are justified and believes funding could be spread out over several bills if necessary to get it passed.

"This is very, very important to an important industry in our country," Pelosi said Tuesday. "It's about jobs, jobs, jobs."

[hermgem]

Automaker loan?
That's a subsidy, never to be returned.
What automobile industry?
If foreign automakers would have opened shop in Canada or Mexico, there no longer would be an automobile industry in this country.
Where are sacrifices by the workforce to save their jobs?
Employees of foreign, non union plants in the south of this country, make $25 per hour less, work more productive and efficient and keep their jobs.
Why taxpayer subsidies to overpaid union workers with royal benefits, cumbersome work rules, and inefficient operations?
Come up with cost reductions first, then apply for a “loan.”
We all remember this recent brutal strike against American Axle that cost GM $38 billions and now they come and ask the taxpayer to pony up.

[rabscuttle385]

"This is very, very important to an important industry in our country," Pelosi said Tuesday. "It's about jobs, jobs, jobs."

Then why isn't Pelosi helping foreign-brand auto manufacturers such as BMW, Honda, Toyota, Hyundai, Nissan, and Kia?

Wait, they actually have decent management that delivers good value to customers at a reasonable price and, as a consequence, the company turns a profit. And yes, most if not all in that list have U.S. plants employing U.S. workers to deliver to a U.S. market.

Pelosi's statements reek of Socialism...bringing everyone to the lowest common denominator. It's not about jobs; it's about power, control, and buying votes.

[rabscuttle385]

Pelosi’s bridge loan to nowhere.

How soon we forget:
http://www.freerepublic.com/focus/f-news/2066502/posts

[bestintxas]

with nancy in support, i hope bush and the gop run like hell the other way...

[yazoo]

That is one expensive vote buying scheme, even by Dim standards.

[markomalley]

Rank	Organization	Amount	Dems	Repubs	Source Indivs PACs Soft $
1	General Motors	$609,398	50%	50%
2	Chrysler LLC	$551,840	50%	50%
3	Ford Motor Co	$545,396	54%	46%
4	Gulf States Toyota	$50,800	18%	82%
5	Alliance of Automobile Manufacturers	$20,350	78%	22%
6	General Parts International	$15,000	4%	96%
7	Lexus Development	$14,000	0%	100%
8	Badenoch Llc	$7,600	7%	93%
9	Mitsubishi Corp	$7,100	68%	32%
10	Nissan North America	$6,950	57%	43%
11	Toyota Corp	$6,000	47%	53%
12	Brake Masters	$5,300	9%	91%
13	Daimler Chrysler	$5,150	100%	0%
14	Honda of America	$5,048	25%	75%

Source: opensecrets.org

That's a lot of money...

[bamahead]

A funding source for the loans still hasn't been determined...

I'll give you a hint : it involves your wallet.

Libertarian ping! Click here to get added or here to be removed or just reply to this post!

[djsherin]

Or the printing press. Or both.

BTW I like the new pics for the Libertarian ping.

[bamahead]

Thanks! I’ve got a few others I’ll be rolling out soon :)

[grellis]

If you would like to be added or dropped from the Michigan ping list, please freepmail me.

Posted yesterday. BO is certain to run with this the next ten times he's in Michigan.

Still sticking with my position: BO takes MI.

[grellis]

Could also just be pandering for Michigan votes!!

NOW you've got it!!!

[absolootezer0]

bah, no need to bailout the big three when we have companies like spartan who can take on these contracts without bailout money.

[Mark was here]

Want to help the auto industry? Dump the mileage standards. Folks can merely ask for the mpg they want in the showroom.

[sergeantdave]

Yes. Let’s bail out the fat union welfare slobs. What a great idea.

PS - for all you people afraid that unionists might beat you up, don’t worry. The vast majority of union slobs are fat, dumb, in wheelchairs of their own life choices, drunk, stoned out of their gourds, interested only in what they can steal from others, and on respirators.

The tough and independent union worker who cared about America left the building 40 years ago.