Comments on: Detroit's Big 3 Make $25 Billion Plea

Beleaguered Automakers Warn Congress Of Broader Economic Peril; White House Skeptical

[pensacola98]

The government bailouts for the housing will be selective. Where evidence exists that the mortgage was made as a speculated investment with intentions for quick resell, or the mortgage was not the primary residence of the mortgage holder, more than likely, the federal assistance will be declined. In that case, the defaulted property could be available for pennies on the dollar in a property auction.

Again, for the most part, homes appreciate, but cars depreciate.

[benissimo-2009]

Screw them and their corporate bonuses... this is what they get for manufacturing gas guzzling SUVs and trucks instead of focusing on green technology and economical cars.

[ajmarine111]

With a yen valued at 118 to the dollar, Japanese automakers enjoy an average windfall $4,000 cost advantage per vehicle more than they would if the yen traded at its true value. The overall subsidy Japanese automakers gain for the 2.2 million vehicles they import totaled $8.8 billion in 2006.

The total yen subsidy provided to Japanese automakers in 2006 was $13.4 billion %u2013 $8.8 billion for car & truck exports to the U.S. and $ 4.6 billion for imported parts used in American-made Japanese cars.
More than half (52%) of all automobiles manufactured in Japan were designated for export in 2006, exceeding 50% for the first time in 19 years.

In fact, even as demand within Japan for new autos is declining, Japanese companies are adding production capacity to Japan-based facilities, reactivating assembly lines, adding workers and postponing planned factory closures as they move to export ever greater numbers of vehicles.


http://chrissander.wordpress.com/2008/07/01/32/

[tibu987]

No more "bailouts". Period. Pay down the U.S. debt with all the "bailout" money.

Why bail out an industry with inept management that has been making unpopular cars for years and losing money doing so.

Enough! Let the chips fall where they may and someone will come along with a better idea and we will return to the successful market we once were.

Let Pelosi and Reid and the union leaders go to h-ll

[devilspeaks]

The bible is against me and I hate it?
When it talks about Gods chosen people I get mad as hell.
The Lord Jesus even quoted it to me when I tempted him in the wilderness and I had to flee?
The bible is the only place where it talks about Gods chosen people. I rather have any good than Gods absolute right and wrong?
Because self then rules by its own understanding with God not being in the picture?
My hope is that no one else will turn to Jesus as their sin bearer so that they can have eternal life here and there.


I influence peoples motives without them realizing it is me, the devil, thats doing it.

[yeswedid]

You are lower than a used car salesman!

Posted by treknutz at 09:30 PM : Nov 18, 2008
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Or lower than a CEO of the car industry itself

[pensacola98]

All automaker executives have daily reports to the critical financial triggers of their target market. They know how much their prospective clients can borrow by peering in to the millions of credit reports around the country. They also know the ability for prospective clients to borrow have trended downward steadily since 2003.

What did the automakers do to prepare for the sales slump?

They knew that big ticket loans, such as homes and automobiles were tied together where credit was concerned.

The automakers had far more control of their destiny than the mortgage industry. The automakers have seen declining sales for years.

Should the automakers be surprised that the country feels that housing is a need whereas an automobile is a want?

Where the government can have housing properties and resell them later for profit to help bail out the mortgage industry, but little exists in an automobile factory that can appreciate in value if the government bought it in a bail out attempt.

The only help the government can give is a tax credit for taxpayers that actually purchase vehicles that help the country reach its'' zero carbon air goals or it reduction in oil dependency.

Helping the automakers any other way doesn''t guarantee the consumer will buy their cars or help the country reach air quality or oil consumption goals.

[ajmarine111]

The UAW has no intention of giving up anything.

Posted by CPelzar at 09:16 PM : Nov 18, 2008




For years, the auto industry has taken massive losses due to high labor costs, high taxation and regulation. Because of previous labor agreements, the auto industry currently pays over $1 billion dollars in retirement benefits annually. Think about that. Every year, they have to make $1 billion dollars just to break even, and that%u2019s not counting the cost of having to run the daily operations. No wonder they%u2019re going under.

[cpelzar--2008]

Displaced workers need help with retraining, and with relocating, if necessary. It won%u2019t be easy, but it is inevitable.


Posted by AJMarine111 at 08:58 PM : Nov 18, 2008

Good post--unions must make concessions and executives must be compensated based on performance. The problem with the Big 3 has been their legacy costs, ie union bennies, combined with their need to keep producing higher margin vehicles (the SUV''''s). No bailouts until the unions come to the table.

Posted by easeup at 09:07 PM : Nov 18, 2008

If you saw the hearing today, The UAW has no intention of giving up anything. They want the bailout so their members will continue to get paid over 100K as well get paid 95% of their wages when a company has idle or slow down production in a factory. BTW, Chris Dodd applauded the companies for paying this outrageous sums as these are the backbone of the american workforce. as if getting paid to do nothing is the backbone of the US workforce, what a moron. Prediction, in January after Obama takes office, the dems will fund detroit and will get no concessions from the UAW. After all the UAW has already paid for this through political contributions to the dems.

[easeup-2009]

What must happen is a serious reworking of the industry%u2019s labor agreements, restructuring of its financial obligations and new management that is charged with making these companies sharper, more nimble and more competitive. New executives should be handed incentives aplenty, based on five-year performance targets, to get the job done. Displaced workers need help with retraining, and with relocating, if necessary. It won%u2019t be easy, but it is inevitable.


Posted by AJMarine111 at 08:58 PM : Nov 18, 2008

Good post--unions must make concessions and executives must be compensated based on performance. The problem with the Big 3 has been their legacy costs, ie union bennies, combined with their need to keep producing higher margin vehicles (the SUV''s). No bailouts until the unions come to the table.

[ajmarine111]

No one wants to see American workers lose their jobs. But it is an absolute certainty that if the government steps in to subsidize the auto companies, workers (and taxpayers) will ultimately pay the price. Eventually, unless the industry restructures in a meaningful way, our auto companies will disappear.

What must happen is a serious reworking of the industry%u2019s labor agreements, restructuring of its financial obligations and new management that is charged with making these companies sharper, more nimble and more competitive. New executives should be handed incentives aplenty, based on five-year performance targets, to get the job done. Displaced workers need help with retraining, and with relocating, if necessary. It won%u2019t be easy, but it is inevitable.

[bigloudbike]

Cpelzar, here is another stupid one for you. I''ll throw it in for free..........
George W. Bush

[truthislife1]

No matter what happens, the car industry needsto completely change it whiney little heart.

A few people with all the power with all the money getting ready to lose all the power and all the money.

[joepack61]

Know someone who had a ''93 HOnda Civic and the main bearing started leaking at 115,000 miles. Granted the A/C was flawless and the trans was genius, but engine failure is engine failure. Another friend ahs a ''97 Ford Contour and at 150,ooo miles the enging does not burn oil and is running excellent. Granted the A/C has to be replace. But engine success and gas milege are just fine.

[cpelzar--2008]

Chevy Malibu and Ford Fusion exceeed Accord and Camry in quality this year. Chevy Malibu: $19,900 four banger. 2008 Honda Accord goes for 20,360 for a four banger. Right off of Motor Trend Web site.

Posted by JoePack61 at 08:47 PM : Nov 18, 2008

I own a Honda Accord, my mother in law has a Honda Accord, My brother has a Honda Accord. Bet car built period.....

Never ever will by a Chevy and I have had (2) Chevy trucks.

[bigloudbike]

Ya your right.....Cpelzar. Now what your excuse? Don''t tell me its your roids

[easeup-2009]

Posted by cause_y

Myopic, ignorant, childish drooler........

[joepack61]

If the Big three want to survive, they need to create an inexpensive, fuel efficient vehicle that people will want to purchase.
Posted by indiana891 at 08:17 PM : Nov 18, 2008.

Chevy Malibu and Ford Fusion exceeed Accord and Camry in quality this year. Chevy Malibu: $19,900 four banger. 2008 Honda Accord goes for 20,360 for a four banger. Right off of Motor Trend Web site.

[easeup-2009]

Posted by cause_y

"America is threatened by an "unholy axis":

"We must exercise responsibility not just at home, but around the world. On the eve of a new century, we have the power and the duty to build a new era of peace and security.

We must combat an unholy axis of new threats from terrorists, international criminals, and drug traffickers. These 21st century predators feed on technology and the free flow of information... And they will be all the more lethal if weapons of mass destruction fall into their hands.

Together, we must confront the new hazards of chemical and biological weapons and the outlaw states, terrorists, and organized criminals seeking to acquire them. Saddam Hussein has spent the better part of this decade and much of his nation''s wealth not on providing for the Iraqi people but on developing nuclear, chemical, and biological weapons and the missiles to deliver them."

President Clinton
State of the Union address
January 27, 1998

[easeup-2009]

Posted by cause_y

"The hard fact is that so long as Saddam remains in power, he threatens the well-being of his people, the peace of his region, the security of the world.

The best way to end that threat once and for all is with a new Iraqi government -- a government ready to live in peace with its neighbors, a government that respects the rights of its people."

President Clinton
Oval Office Address to the American People
December 16, 1998