Posted on 12/10/2008 3:53:13 AM PST by tobyhill
The White House and Democratic congressional leaders said they had reached a deal in principle on a 15-billion-dollar rescue for the ailing automotive industry that could be ready for a vote Wednesday but many lawmakers remained skeptical of the bailout.
Even as details of the plan were still being hammered out, Democratic party leaders worked to rally support for a possible vote on the package in the House of Representatives.
Senator Carl Levin from Michigan, the base for the auto industry, said he understands that an "agreement has been reached," and that it was only a matter of time before a bill was ready for a vote.
"This gets us to the 20 yard line, but getting over the goal line will take a major effort," he said.
The White House said "a great deal of progress has been made" on the legislation to shore up the ailing Detroit Big Three -- General Motors, Ford and Chrysler .
In the most elaborate intervention in US industry in years, the tentative deal calls for emergency government loans to the car companies within days to be overseen by a "car czar" appointed by President George W. Bush.
In return, the automakers by March 31 would have to cut costs, settle debts and make other changes to show a path to viability or otherwise face possible bankruptcy.
The government could choose to revoke the loans if the companies failed to make progress, or could refuse further assistance after March 31 if there was no realistic survival plan for the Big Three, officials said.
(Excerpt) Read more at google.com ...
They are doomed, let them die already.
It sounds like Ford will not be taking the bailout. I would think that Ford ought to be stressing that they are not part of the bailout and distance themselves from this and the car czar. It will help Ford sell lots of cars.
I and many others will never buy a car from a company that gets in on this bailout.
Please GOD... please stop this madness... Amen.
LLS
Ford saw this coming and restructured beforehand, shutting down factories (one here in Norfolk, VA) to cut costs.
Maybe FoMoCo is a little more fiscally responsible?
Me? I drive an American built Nissan truck (2007 Titan), a Mexican built VW (2008 New Beetle) and a German built VW (1969 Beetle).
Ford might well be the only US car company left standing in a year or so.
Note to Congress: And you vote for it at your political peril....
Auto makers who fail should not be “rescued.” Legislators who rescue them should be RECALLED.
If it was up to me, I would have told the Big 3 to drop dead and the UAW to go screw itself. And yes, I do believe that the loss of the Big 3 is a small price to pay if it means defunding the UAW.
They can still remain FoMoCo.
GM will become a MoFoCo.
Why not? You'll be paying them (with your taxes) and not even getting the car?
LOL
/sarc
“Why not? You’ll be paying them (with your taxes) and not even getting the car?”
Yea, I know........
Why ? Rewarding failure is good ? Funding overcapacity in the auto industry is good ? Funding gold-plated medical plans and pensions and jobs banks is a good use of tax money ? You want to indebt your grandchildren for that ?
Geez, let’s end with the “no jobs lost” theme. Take our pain, move to a level in the economy that’s sustainable. Lots of other industries have closed plants and offices and more will within the next year. Why should autos be immune ?
It would seem a wise move to not be burdened with greater debt with the added pain of some clueless politician car-czar influencing how the business is run. If their future holds Ch.11, at least they will not scam billions from American taxpayers in the process.
If the UAW is not curtailed, then all the bailouts in the world will not help these industries. We just closed two division in our company, why can’t they?
The Great UAW BAILOUT of 2008
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