Posted on 11/13/2008 5:11:57 AM PST by equaviator
General Motors chairman Rick Wagoner says that his company is in such poor financial shape -- indeed, Deutsche Bank considers the company's stock worthless -- that it "needs" welfare assistance from American taxpayers before it runs out of cash.
Well, Wagoner didn't put it exactly like that. He called it a "federal aid package."
"This is an issue that needs to be addressed urgently," Wagoner told Automotive News, adding that now is the time to "overshoot, not undershoot" the level of assistance.
GM is willing to offer the government preferred stock, speed the introduction of fuel-efficient vehicles and set limits on executive compensation in exchange for financial aid, Wagoner said.
In other words, GM is willing to prostrate itself before the state if that means getting its fix. Nothing like selling your soul for corporate fascism.
Hey, Rick, I've got a 1970 Chevelle sitting in my garage that would look great in a sweet new paint job. I suppose I should just beg for my place at the federal trough like you instead of doing what normal people do and find new ways to make money, huh?
Listen, it wasn't American citizens who knuckled under to the UAW and decided to lavish fat pensions and health benefits on assembly line workers making $100k a year the past few decades. So get over it. Figure out how to cut overhead and improve your product or go the hell out of business.
How about developing cars that last longer than the average financing contract?
That is what attracts most to the “foreign” cars. As an insurance agent, you see a LOT older cars being insured that are Honda, Nissan and Toyota than you do Ford or Chevy.
Just a non-scientific observation.
Save America, outlaw unions.
Ford and Chevy make long-lasting full size pickup trucks and the GM Astro/Safari line is also a good get as a used vehicle...So now they want to do away with all of that?
YES!!!! But BoB and Pelosi won. GM becomes part of federal government now based on promises they made. Dont like it? Well the GWB groupies should have been discussing this with their buddy years ago about running up deficits, expanding government, stimulus packages and huge unexplained bailouts. He has made such a mess and expanded government power SO much, how do we alarm the voters against ANY socialism power grabs now? It seems hopeless. But the faithful STILL blame the MEDIA for EVERYTHING GWB did. Twi-light zone. The GWB yearsLOL
Enslaving the public and demanding that they solve all the problems of society is called Socialism. And so we nationalize our banks. We nationalize our heavy industry.
This sort of National Socialism has been seen before.
Kill the UAW, Save GM, Chrysler, Ford.
If they can’t make it after a long run of prosperity and a blip of a recession, they will never make it. The bad times have not even really gotten started.
Exactly!
Their trucks are some of the best in construction and toughness, but they want to focus on crap cars?
Gas mileage is great when you aren’t running a construction crew.
Note to pols: Bail that out at your political peril.
I agree, but approximately $25 billion of the $50 billions is slated to go directly to the UAW, IIRC.
I don’t know if this will buy the UAW out of American auto manufacturing, but it will shore up pension liabilities.
The UAW is just as culpable in the failure of US auto manufacturers. I have no sympathy for either party.
Every GM vehicle has a $1600 add on to cover employees’ healthcare.
Drowning in their promises.
Just another prime example of a lefty do-good program that is supposed to help people that ultimately hurts them. The unions are a big part of this problem.
The liberals can’t allow GM to fail or it would lead to one of the biggest union failures ever...they must protect their corrupt programs at all costs!
We need to stop these Marxists from further destroying our great FREE country.
what’s the status of the US agreeing to fund the auto industry?? I PRAY this does not go through and they file bk. what’s bush’s stance on this, anyone? what’s the likelihood we thwart them and they don’t get the cash?
Bad/sad news here is that - OF COURSE - Obama and the Pelosi Demarxists are NOT going to let GM make 'those' changes.
Instead, they are determined to take full advantage here of the 'Government Acquisition' program while empowering the most damning Union Agenda.
Don't know how we stop this freight-train; coming at us. . .
The best thing we can do for the big three is let them go bankrupt. That is the only way they can dump the union contracts and they can’t survive unless that happens.
If the US is going to bail out the auto industry, then the UAW must be dismantled. What is most amazing is that union workers don't realize that the union is not on their side. The union, like our government, is on their own side, to pad their pockets.
Our government is just a big union. Inept and wasteful. We need a tax revolt and force Washington to downsize or we are done, no matter who is in office.
The average GM worker makes around $27/hr. With added benefits, $73/Hr. I surely can’t see what went wrong there, can you?
How much do those robots make?
Jobs bank programs -- 12,000 paid not to work Big 3 and suppliers pay billions to keep downsized UAW members on payroll in decades-long deal.
Note to pols: Bail that out at your political peril."
But is it at their political peril? If the Federal government bails out the big three, it will be using our tax dollars to pay the union democrat vote machine and assuring more block voting support for the Democrat candidates. Also, I wouldn't be surprised if the auto companies ultimately offload their legacy retirement and health care costs directly on the Federal government through some sort of new program to "make America competitive again." It will be like a little social security program and the costs will simply vanish from the corporate balance sheets.
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