GM Blitzes Washington in Attempt to Win Aid

Wall Street Journal ^ | November 15, 2008 | Jeffrey McCracken and John D. Stoll

[reaganaut1]

General Motors Corp., hoping to sway the battle in Washington over an auto-industry bailout, has begun telling federal officials that a bankruptcy filing by the car maker would set off a chain reaction hammering hundreds of suppliers and dealers -- and in turn the company's Detroit rivals.

GM is attempting to set the terms for what looks to be a showdown among the lame-duck U.S. Congress, President Bush and the incoming Obama administration. On Friday, Senate Majority Leader Harry Reid signaled he will move forward on Monday with a bill giving the industry access to the $700 billion Troubled Asset Relief Program. That entity, known as TARP, was set up by the government in October to help ailing banks and other financial firms.

The Bush administration and many Senate Republicans oppose giving auto makers access to TARP. Instead, President Bush on Friday urged Congress to speed up the release of $25 billion in already-approved loans to the auto industry. He asked Congress to drop requirements that those loans be used to help the industry retool to meet higher fuel-economy standards, a step many Democrats oppose. The Republicans have enough votes to block a deal in the Senate.

Amid the political horse trading, GM is holding meetings this weekend with U.S. Congressional leaders, the Bush White House and members of the Obama transition team, according to people familiar with the situation. The efforts are an attempt to show policy makers how a GM bankruptcy filing would unleash unintended consequences that could cripple the country's industrial base.

[11th Commandment]

Contact all your reps in Congress to protest the bailout of the auto industry.

And contact GM, Ford and the other one that if they take federal aid you will not buy their product again!!!

[bronxboy]

In the coming meltdown, you won’t be able to afford anything. Do you really believe a country with no manufacturing will remain an economic or military super power? Assume the position necessary to kiss China’s a$$-this is the future of our formerly great nation.

[bronxboy]

I heard this is off-all cars are not selling you know. No need to pretend to provide America jobs anymore either with the big three gone.

[bronxboy]

How will you fight socialism with millions thrown out of work ready and willing to give socialism a chance.

[Proud2BeRight]

I have opposed any corporate bailouts, including auto. On a popular auto discussion program this morning I did hear an interesting point. The US auto makers make our military equipment during times of war.

[longtermmemmory]

this is why the beltway disease is so incideious.

(see cong wexler NOT living in his district since elected)

most of the ads like this are NEVER seen outside the DC area. Perception is reality. The belway isolated never seem to get the rest of the USA never sees these BS pushes.

[longtermmemmory]

BTW all you mention would be done in a bankrupcy.

That is why the UAW is in terror of a bankruptcy.

The first issue with GM obtaining bankruptcy REORGANIZATION bankruptcy is the debtor in posession financing.

They need money to run while under bankruptcy protection.

The unions must be fighting this in the background in order to trick congresses hand.

I just hope this is left to Obama(tax).

[cp124]

Job Banks...get paid to do nothing

[cp124]

Detroit 3 Costs vs Implants

[cp124]

The US auto makers make our military equipment during times of war.

And the UAW would go on strike.

[Conservativegreatgrandma]

Too bad. They’re lining up like planes waiting to land at O’Hare to get their handouts, too. When will this blackmail stop?

[Tripleplay]

I agree.

The ship on preserving capitalism has already sailed.

The Gov has given away 3 trillion with no strings arrached to the “suites” who created the phony paper profits in the first place. AIG alone has received 150 billion and will probably need more.

To deny the auto industry funds defies any rational logical thought.

[Conservativegreatgrandma]

Then we are so screwed as it's socialism either way. This is the havoc liberalism has wrought.

So what is your solution. I see a whole bunch of liberals in DC perfectly willing to throw small business overboard if they have save their union buddies in big business.

I despise them all. Whatever happened to capitalism and free markets.

No one cares if our small family business goes bankrupt. I depend on the income from that small business. I want my share.

[bronxboy]

The handouts? Never, if GM goes under. Millions of unemployed Americans will demand from the government what they used to obtain by the sweat of their brow.

[Conservativegreatgrandma]

Do you expect the US govt. to bailout the automakers who continue to make the same vehicles that no one is buying. Someone has to buy what they're making.

Then my solution of giving cars to people would be a better solution as it's not just pouring money down a rat hole.

I do not believe government is smart enough to decide who should get bailouts and who should not.

In our state government thinks they can decide what businesses should get state subsidies.

[bronxboy]

Consider that GM is number one in terms of market share, I guess some are buying American cars-patriots if you ask me. People who believe in their country’s future and are not willing to sacrifice long term economic stability for cheap foreign toys. As for the government not being smart enough0it doesn’t take a rocket scientist to figure out that millions of jobs lost in this economy is a very, very bad indeed.

[bronxboy]

I agree. We are screwed either way. As for capitalism, the greedy fools on Wall Street are to blame. They distorted and basically ruined our markets and then got a bail out.

[taildragger]

Do you expect the US govt. to bailout the automakers who continue to make the same vehicles that no one is buying. Someone has to buy what they're making.

So GG,

Which one of these Euro-Transplants don't you want that a ton of Ford Engr's here are working their @$$es off to bring over here?

The Ford C-MAX, I am an average sized, and I fit great in the middle seat in the back, (yes it is a 5 seater, almost like a small mini van it is so roomy)

The Ford Fiesta

The Ford Mondeo....

The Ford Transit Connect, great vehicle for a small business like wedding cake bakery IMHO...

The Ford Kuga, Car and Driver liked this one a lot in their last issue of cars they feel we need now....

SO DO YOU STILL THINK IT IS A BAD IDEA TO GIVE THEM A BRIDGE LOAN SO THEY CAN BRING THESE HERE SINCE AT THE CURRENT BURN RATES THEY MIGHT RUN OUT OF CASH? OR DO YOU GIVE THEM A BRIDGE LOAN?

[Conservativegreatgrandma]

I am not sure of your point. Yes, it is a bad idea to give them a bailout considering that someone has to buy what they're selling or we're back into this same mess and that means we're throwing good money after bad.

I have a certain loyalty to Chrysler. We've been driving minivans ever since they came out with them and have never had a major repair bill. The one we have now gets an average of over 23 mpg and that includes city driving. It gets 31 mpg on open highway.

The problem is these cars last for a very long time. My husband took my last one away from me at about 180,000 mi. I did not want to give it up. Why? It was still running perfectly.

[Terry Mross]

In ‘91 the wife bought a Dynasty. Total lemon. In the shop all the time. She’s now on her4th Toyota. In our driveway sits two Toyotas and a Volvo. All are old but run and ride great and they’re paid for. Knock on wood.

Detroit hasn’t made a good car in years.