Four Big Lies about the Big Three Automakers

newsmax ^ | Monday, December 8, 2008 3:58 PM

[jessduntno]

Four Big Lies about the Big Three Automakers

Monday, December 8, 2008 3:58 PM

With Congressional Democrats and the Bush administration agreeing in principle over the weekend to drop a few billion on General Motors and Chrysler, all signs point to a government-backed auto industry bailout. But could the crisis in Detroit be the product of myth, spin and outright lies?

As the nation inches closer to an unprecedented investment in private industry, Newsmax has examined the falsehoods being spread to promote the deal. Indeed, the exact amount of money to be doled out isn’t clear yet. GM and Chrysler executives testified before Congress last week that they need $14 billion to survive until March 31.

Whatever the total, a number of financial experts say it would be money better left unspent until the Big Three and their supporters agree to level with the American taxpayers. Until the car makers can offer convincing proof that they will be able to produce cars at a reasonable price that customers will want to buy, here are four of the biggest whoppers they are relying on to get a massive infusion of American tax dollars:

[jessduntno]

Just Four?? I would have guessed more...anyone???

[omega4179]

This is interesting!

[etradervic]

This is not a bailout of the “Big Three,” it is a bailout of the UAW. It is the dems giving away tax dollars to their union cronies.

[TribalPrincess2U]

Still wondering where all the S&L money went.

[kc8ukw]

Their whipping up so much public hatred asking for this bailout - will anyone be willing to buy their cars afterwards anyways?

[TribalPrincess2U]

Payback time.
Elections cost money.

Pearl of Wisdom: “Congress should put in an order to buy a million-and-a-half cars. We need to sell American cars. So Congress should go in, buy the cars, and sell them.” -Rush

Wouldn’t that be nice?

[murphE]

ping

[whipitgood]

If they had enough customers, they wouldn’t be asking for a bailout. Personally, I will never buy another American car- unless they give us back the bailout money, plus interest. That just isn’t going to happen. The ‘big three’ will soon ba another Amtrak.

[whipitgood]

If they had enough customers, they wouldn’t be asking for a bailout. Personally, I will never buy another American car- unless they give us back the bailout money, plus interest. That just isn’t going to happen. The ‘big three’ will soon be another Amtrak.

[irishjuggler]

Some industry apologists have argued that American consumers won't buy any cars from the Big Three if they are in bankruptcy because of concern that warranties won't be honored. But as long as the companies offer quality autos at reasonable prices and make it clear that warranties will remain in place no matter what happens to the companies themselves, American drivers will want the cars.

I'm not sure that I understand this particular argument. How exactly will a warranty "remain in place" if one of these companies ends up completely out of business (which is NOT impossible)? Some sort of trust fund or government guarantee? Can someone explain what the author is driving at?

[Las Vegas Ron]

The ‘big three’ will soon be another Amtrak.

Spot on!

[FrankR]

"If they had enough customers, they wouldn’t be asking for a bailout. Personally, I will never buy another American car- unless they give us back the bailout money, plus interest. That just isn’t going to happen. The ‘big three’ will soon ba another Amtrak. "

I agree. But I think if we REALLY want to make a statement, don't buy another car made by UAW workers. The quicker we can break the back of the union, the sooner we'll get cars worth buying, that we can afford.

The UAW is not about workers, it's about establishing microcosms of liberal pressure groups to intimidate and scare people into supporting democrats. They are parasites and cannot exist without the "host"...take out the host, and you take out the parasites.

[Liberty1970]

I like Newsmax for its conservatism and I am opposed to a bailout, but speaking as a auto industry worker (at a supplier), who has followed the financial, etc., news in the industry for years, this article is largely garbage.

[Redbob]

"Four Big Lies about the Big Three Automakers"

I thought
"I'm from the Government and I'm here to help you," was No.3?

[Redbob]

"Pearl of Wisdom: “Congress should put in an order to buy a million-and-a-half cars. We need to sell American cars. So Congress should go in, buy the cars, and sell them.” -Rush Wouldn’t that be nice?"

Put me down for a Corvette, please:
Red, manual trans, a/c...

[Redbob]

"Pearl of Wisdom: “CPersonally, I will never buy another American car..."

Fine.

Next time we have a war, a real war, ask your Jap buddies to build some tanks for you!

[Redbob]

"...don't buy another car made by UAW workers."

That's a fine plan, but it's going to hurt your pals at Toyota too, you know.

[TheBattman]

At least then, there would be SOME return on the money...

[gotribe]

Folks, here is the test: If the Big 3 were not unionized, would Congress be entertaining this bailout?

The answer of course is: NO.

This is not about saving companies or even saving jobs, it’s about saving the UAW.

[TheBattman]

And Mitch Album’s rebuttal:

http://www.freep.com/article/20081205/COL14/812050400