Posted on 09/16/2008 4:17:53 AM PDT by TigerLikesRooster
Next Bailout May Be for Automakers
McCain, Obama Back Loan Guaranties
By RUSSELL BERMAN, Staff Reporter of the Sun |
September 16, 2008
http://www.nysun.com/national/next-bailout-may-be-for-automakers/85937/
WASHINGTON — The beneficiary of the next government bailout may not be Wall Street but Motor City.
The nation's top car manufacturers are pushing Congress to act by the end of this month to guarantee $25 billion in loans to help them invest in the production of fuel-efficient vehicles. The idea is being greeted warmly by both the Democratic and Republican presidential candidates, who see it as a way to win votes in the swing state of Michigan while also moving America away from dependence on foreign oil.
Backers of the legislation, which include the Democratic leadership in Congress, say it would give a needed boost to a struggling industry and save American manufacturing jobs. But critics have panned it as a taxpayer-funded rescue plan for automakers who have lost out to foreign competitors in the race to build cleaner, more efficient cars.
(Excerpt) Read more at nysun.com ...
Ping!
When are we going to stop interfering with the markets? I say let the car companies sink or swim.
I read about this last week. Some political analyst had stated that more than likely the automakers will get a bailout simply because it’s an election year and what candidate is going to tell Michigan that they don’t matter.
I agree.
Of course if this is such a home run, then let Michigan issue bonds and turn the money over to GM, Ford. Or let the Unions put their pensions up as collateral.
But seeing how the union workers, the management, the banks, Carl Ican and everybody else knows that this is a loser idea, then of course the Democrat and Republicans will fist this big pile of steaming, stinking economic contradictions up the ripped up, bloody arses of the constantly sodomized taxpayer.
Vote Democrat!
Vote Republican!
If we had domestic oil this never would have happened. This entire collapse is due to not having affordable energy thanks to Congress and Do Nothing Nancy wants to make it worse.
Pray for W, McCuda and Our Troops
Fuel efficient cars in many cases mean "little cars" and DEATH.
I'd really like my car to stay on the road. I won't buy less than a 3000 lb vehicle for here in Upstate NY.
Then, there's something called UNIONS.
Ford recently announced that it has a new diesel passenger vehicle that will average 65 MPG.
Can’t wait to get one? Ford will only sell them in Europe. The “brains” at Ford “believe that the American consumer has not accepted diesel personal vehicles”.
These morons won’t even try to sell this car here because WE AMERICANS are too STOOOOOOOPID.
Ford should go bankrupt with IDIOTS like this at the helm.
I feel no pity for them what so ever.
Ford sucks...
The big three have been supporting Levin, Dingle and Conyers for the last 40+ years...
Let them fail. I’m tired of the overpriced crap they build anyway. I drive German cars...
25B?
These days, that’s chump change!
There’s no such thing as “domestic” oil. It’s either on the world market, or it’s not.
I told you so...
You cut a mighty fine hair. We drill our own and due to transportation costs it will likely stay here and if it goes to China, great we can use more exports.
Pray for W, McCuda and Our Troops
I read recently that if Detroit could produce a full size vehicle that would get around 35 mpg then that could be a similar boost to the US auto makers that Chrysler started with its mini-van back in the 80s. Add to that wish list durability; say 350,000 miles to first scheduled engine overhaul. Long service intervals; say 10,000 miles between oil changes. A quiet, comfortable ride at all speeds. Priced and financed in a way people can afford.
Well, I’m driving one right now! My Mercedes E320 Bluetec so far is getting an average of 32.8 mpg (4700 miles). With 398 lb-ft of torque it accelerates like a Detroit muscle car from days gone by and the drive quality is wonderful. Several people that have gone for drives with me in it have expressed surprise that it’s a diesel, it is so quiet. Unfortunately, not built in Detroit, I wish Detroit had something similar. I wonder why Mercedes-Benz will not use its clean diesel technology in its Chrysler division, perhaps they will the technology is simply so great a leap it is hard to see how it could not get a great reception with the American car buyer once properly introduced.
1. Mercedes no longer owns Chrysler. They practically gave it away to Cerberus.
2. Don’t forget to keep topping up the urea tank in your Merc, or it won’t be so clean any more.
3. Diesels have their own problems. Europe is just now waking up to the fact that their cities are getting covered in diesel particulates from all the diesel engines over there.
Mind you, I’m not defending Detroit - I’m just pointing out that the problem is a little more complex than what you present.
That said, no sympathy here for the idiots who declined a below-market-price license for the Prius hybrid technology (GM), and those who continued to churn out such garbage as the Windstar/Freestar when they also had such wonderful vans as the Transit available (Ford).
Honda, Toyota, Nissan, BMW, and other car manufacturers in the USA don't seem to have the problems of GM, Ford, and Chrysler. How do they differ from the Big Three? Hmmmm ... the words "United Auto Workers" comes to mind.
There’s also the added point of those makers didn’t spend 30 years pissing all over their customer base. The “Olds diesel”, the “Cadillac Cimmaron”, and the Ford Pinto come to mind.
The biggest reason I would be very careful about investing millions in bringing a new technology to the US. The capricious nature of congress and its ability to make the EPA do its bidding makes it a gamble to do anything in this country.
There is absolutely nothing to keep Congress from making any technology prohibitive at the drop of the hat.
Look at the debacle that ethanol has become. Congress hopped on the bandwagon and forced all of us to pile on too. The result has been less mileage and more pollution with the side benefit of greatly increased food costs around the world.
Very little is certain in today's world, but one thing you can absolutely depend on is that if Congress gets involved all hope is lost. As long as voters can be bought using their own hard-earned tax money it's not going to improve.
In theory voters can simply refuse to return an errant or inefficient member of Congress to the hallowed halls. In reality 100 plus years of rigging Congress and its rules, plus the ability to hand out billions of dollars to constituents makes it highly unlikely any incumbent will be sent packing. Look at the buffoons who have held office for 30 years or more, the list goes on and on. And anytime there's a problem, guess whose names come up time and again? Yup, Frank, Pelosi, et al.
I don't deny the role car company greed plays in the problems we face, but that greed is compounded by a regulatory and tax environment that makes it very hard for a company to have a five-year plan.
FORD
4th-generation Fiesta (coming late fall 2009)
3rd-generation Focus (coming some time in 2010)
4th-generation Mondeo (coming in 2012, which may keep the Fusion name)
2nd-generation Kuga (coming in 2012)
GM
3rd-generation Chevrolet Aveo (coming in 2010)
I/D-generation Opel Astra (to be sold under Saturn label by 2010)
2nd-generation Opel Meriva (likely to be sold under Chevrolet label by 2010)
Chevrolet Cruze (coming fall 2009 to North American market)
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