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November 17, 2008 4:40 PM

Katie Couric's Notebook: Big Three Bailout?

Posted by Katie Couric
The Big Three automakers in America are running on empty.

The decision before Congress: Should the government give them an emergency fill-up, or leave them by the side of the road?

Supporters of the proposed $25 billion bailout say that the failure of Ford, GM and Chrysler could devastate the economy and leave hundreds of thousands unemployed.

That said, all the money in the world doesn't solve the key problem -- not enough people are buying American cars.

Senator Richard Shelby of Alabama blames a lack of innovation, calling the industry a "dinosaur."

A Senate vote could come as early as Wednesday, but it's not likely the problem will be solved before Barack Obama takes office in January.

Bailout or no bailout, auto executives need to put the pedal to the metal... and get leaner and greener in order to survive.
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Add a Comment See all 25 Comments
by BeyondGreen November 17, 2008 6:55 PM PST
I think we best be getting on with the promise of making America energy independent.Iran just asked OPEC to reduce production by yet another 1.5 million barrels per day.This past year and the record gas prices played a huge part in our economic meltdown and seriously damaged our society.We keep planning to spend BILLIONS on bailouts and stimulus plans.Bail us out of our dependence on foreign oil. Make electric plug in car technology more affordable. It cost the equivalent of 60 cents a gallon to drive an electric plug in car. The electric could be generated from wind or solar. Get with it! Utilize free sources such as wind and solar. Stop throwing away money on things that don''t work. Invest in America and it''s energy independence. Create cheap clean energy, create millions of badly needed green collar jobs. Put America back to work. It is a win-win situation. We have to become more poractive citizens, educate ourselves and demand our elected officials move this country forward into the era of energy independence. Jeff Wilson''s new book The Manhattan Project of 2009 Energy Independence NOW outlines a plan for America to wean itself off oil. We need a plan and we need it now! www.themanhattanprojectof2009.com

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by cherry2435 November 17, 2008 7:17 PM PST
I think they should look at the pay of the executives of the Big 3. GM is paying theirs 40k a day. Don''t you think that would help pay for a few hours for the working men and women of the company?
Reply to this comment
by guyw9 November 17, 2008 9:51 PM PST
Something is not right. How will this bailout cause people to want to buy a GM, Ford or Chrysler???

It is often said that GM, Ford, Chrysler has many parts (more than Toyota) that are produced in Mexico and China. The US autos also have received a bad reputation when it comes to quality. :( This bailout will not solve that, or the existing UAW agreements.

Mullally said it right when he said that "Ford Motor Company has been going out of business over the last 20 years."
Reply to this comment
by muffin2023 November 17, 2008 10:57 PM PST
I have seen the leaner being a UAW member and Chrysler employee for 13 years I have seen improvements and innovative changes. I''ve worked through several contracts and seen numerous concessions on the workers side of the contract, but I have yet to see any substantial changes on management''s side. I worked at a plant that employeed approximately 1200+ employees and seen it reduced to 200 at present time. I was part of the union leadership and had to be part of seeing hundreds of co-workers get laid off up to the point that I was one of them. I''ve been through the so-called merger of equals with Daimler only to feel the wrath of it being a takeover whereas Bob Eaton got his millions and no one has seen him since, to the present day of private management firm Cerebus owning the company where we have gotten leaner on the hourly workers side and haven''t seen profit sharing checks for approx. 8 years while we see the execs getting millions in bonuses each year. Leaner needs to start at the top and not always roll downhill.
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by eveningnews3 November 17, 2008 11:01 PM PST
Speaking of: "The Big Three."

What do actress Barbara Rush, singer Sarah Brightman and
television personality Katie Couric all 3 have in common ?


Answer: (according to me -- eveningnews "3")

In all 3 of these rare instances...
each woman''s physical beauty INCREASED... rather than
decreased... with the passage of time.
Reply to this comment
by sarah_palin November 18, 2008 1:10 AM PST
Caty...when your batteries die in the middle of a longish session, here''s a tip:
You needn''t stop; you simply plunge the vibrator in and out very quickly until you reach your happy place. If your wrist gets tired, you can always call Meredith and/or Matt to come over and give you a hand. If they are too busy, you could always just ask the housekeeper.

sarah
Reply to this comment
by sarah_palin November 18, 2008 1:11 AM PST
Caty...when your batteries die in the middle of a longish session, here''s a tip:
You needn''t stop; you simply plunge the vibrator in and out very quickly until you reach your happy place. If your wrist gets tired, you can always call Meredith and/or Matt to come over and give you a hand. If they are too busy, you could always just ask the housekeeper.

sarah
Reply to this comment
by sarah_palin November 18, 2008 1:12 AM PST
Caty...when your batteries die in the middle of a longish session, here''s a tip:
You needn''t stop; you simply plunge the vibrator in and out very quickly until you reach your happy place. If your wrist gets tired, you can always call Meredith and/or Matt to come over and give you a hand. If they are too busy, you could always just ask the housekeeper.

sarah
Reply to this comment
by insight2008 November 18, 2008 7:56 AM PST
Big 3''s hourly compensation: $73/hr. Toyota: $48/hr Overall manufacturing: $34/hr.

Big 3 adds $1200/car just to cover healthcare. Just too many UAW retirees,etc., that causes these cars to be overpriced for what we get. Sorry, UAW, you have done a great job but, I am not obligated to buy your autos just to keep you employed. Plus, your management is about as sorry as it gets.

Quality? I own a Lincoln. Great ride. Rest of it..pos. Already replaced the window controls, the climate control unit, and now the heater core leaks. Plus, the suspension sounds like an old man walking down the street.

Back to that Japan stuff for me.
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by denron44 November 18, 2008 9:28 AM PST
I used to have a good job making parts for GM. May of 2005 my job went to Mexico, a job I thought I retire from. Now I work in a grocery store making min wage. I live in Michigan and at least grocery stores don''t lay off. So now I can''t afford a new car and no way can I afford to pay more taxes. So thats to bad they need help. If they would have more of there parts made here in America then more cars would be sold.
Reply to this comment
by sonjamills November 18, 2008 10:15 AM PST
If the big 3 automakers go ahead and take a massive taxpayer-funded bailout, what''s to stop them from lining the pockets of their execs and laying off hordes of employees anyway? (Like the banks are currently doing). Is the purpose of this bailout to save jobs, or to pad the bank accounts of millionaires? Same as the bank bailouts, I guess, more money for the already-rich. The workers will lose their jobs regardless of what congress decides, and either way it is the taxpayer (not the fools who messed this whole thing up) who will pay pay pay. Let the automakers go bankrupt, so what? Donald Trump does it every few years, and he still manages to be filthy rich. It''s all just play money anyway, isn''t it? Help people who are working 60 hours a week and still can''t make their mortgage payments??? Why, that would be un-American.
Reply to this comment
by dsava-2009 November 18, 2008 10:37 AM PST
My husband and I own a small business and we are being squeezed financially from all sides! How can the government justify bailing out these big businesses when no one is helping the small business owner? When are we going to get some relief? I know that the money given to the banks is supposed to trickle down to us but no one is lending money...even if you have good credit and have made all of your payments! They tell you that the only way you can qualify for help is if you are not making your payments! Please explain to me how a person can keep their good credit today? Why can''t you give money to the American people instead of these large corporations? They are NOT passing the money along to us! If you gave each family in America money do you know what would happen? They would be able to pay off their mortgages! Then the banks would have their money back! Pay off credit card debt...again the banks get their money! Buy cars...the auto industry wins! Buy toys and gifts for Christmas! Retailers win! Something all you lawmakers forget is that we the American people make this economy go! If we had access to money then the economy would start moving again! You would not bail me out if my business was going bankrupt!! Why and how can you justify spending money to bail these massive companies out??? You say it''s helping the American people but it isn''t! Give us the money and watch the economy turn around!

Sincerely,
Donna Sava
Franklin, TN
Reply to this comment
by dsava-2009 November 18, 2008 10:37 AM PST
My husband and I own a small business and we are being squeezed financially from all sides! How can the government justify bailing out these big businesses when no one is helping the small business owner? When are we going to get some relief? I know that the money given to the banks is supposed to trickle down to us but no one is lending money...even if you have good credit and have made all of your payments! They tell you that the only way you can qualify for help is if you are not making your payments! Please explain to me how a person can keep their good credit today? Why can''t you give money to the American people instead of these large corporations? They are NOT passing the money along to us! If you gave each family in America money do you know what would happen? They would be able to pay off their mortgages! Then the banks would have their money back! Pay off credit card debt...again the banks get their money! Buy cars...the auto industry wins! Buy toys and gifts for Christmas! Retailers win! Something all you lawmakers forget is that we the American people make this economy go! If we had access to money then the economy would start moving again! You would not bail me out if my business was going bankrupt!! Why and how can you justify spending money to bail these massive companies out??? You say it''s helping the American people but it isn''t! Give us the money and watch the economy turn around!

Sincerely,
Donna Sava
Franklin, TN
Reply to this comment
by dsava-2009 November 18, 2008 10:37 AM PST
My husband and I own a small business and we are being squeezed financially from all sides! How can the government justify bailing out these big businesses when no one is helping the small business owner? When are we going to get some relief? I know that the money given to the banks is supposed to trickle down to us but no one is lending money...even if you have good credit and have made all of your payments! They tell you that the only way you can qualify for help is if you are not making your payments! Please explain to me how a person can keep their good credit today? Why can''t you give money to the American people instead of these large corporations? They are NOT passing the money along to us! If you gave each family in America money do you know what would happen? They would be able to pay off their mortgages! Then the banks would have their money back! Pay off credit card debt...again the banks get their money! Buy cars...the auto industry wins! Buy toys and gifts for Christmas! Retailers win! Something all you lawmakers forget is that we the American people make this economy go! If we had access to money then the economy would start moving again! You would not bail me out if my business was going bankrupt!! Why and how can you justify spending money to bail these massive companies out??? You say it''s helping the American people but it isn''t! Give us the money and watch the economy turn around!

Sincerely,
Donna Sava
Franklin, TN
Reply to this comment
by dsava-2009 November 18, 2008 10:38 AM PST
My husband and I own a small business and we are being squeezed financially from all sides! How can the government justify bailing out these big businesses when no one is helping the small business owner? When are we going to get some relief? I know that the money given to the banks is supposed to trickle down to us but no one is lending money...even if you have good credit and have made all of your payments! They tell you that the only way you can qualify for help is if you are not making your payments! Please explain to me how a person can keep their good credit today? Why can''t you give money to the American people instead of these large corporations? They are NOT passing the money along to us! If you gave each family in America money do you know what would happen? They would be able to pay off their mortgages! Then the banks would have their money back! Pay off credit card debt...again the banks get their money! Buy cars...the auto industry wins! Buy toys and gifts for Christmas! Retailers win! Something all you lawmakers forget is that we the American people make this economy go! If we had access to money then the economy would start moving again! You would not bail me out if my business was going bankrupt!! Why and how can you justify spending money to bail these massive companies out??? You say it''s helping the American people but it isn''t! Give us the money and watch the economy turn around!

Sincerely,
Donna Sava
Franklin, TN
Reply to this comment
by dsava-2009 November 18, 2008 10:39 AM PST
My husband and I own a small business and we are being squeezed financially from all sides! How can the government justify bailing out these big businesses when no one is helping the small business owner? When are we going to get some relief? I know that the money given to the banks is supposed to trickle down to us but no one is lending money...even if you have good credit and have made all of your payments! They tell you that the only way you can qualify for help is if you are not making your payments! Please explain to me how a person can keep their good credit today? Why can''t you give money to the American people instead of these large corporations? They are NOT passing the money along to us! If you gave each family in America money do you know what would happen? They would be able to pay off their mortgages! Then the banks would have their money back! Pay off credit card debt...again the banks get their money! Buy cars...the auto industry wins! Buy toys and gifts for Christmas! Retailers win! Something all you lawmakers forget is that we the American people make this economy go! If we had access to money then the economy would start moving again! You would not bail me out if my business was going bankrupt!! Why and how can you justify spending money to bail these massive companies out??? You say it''s helping the American people but it isn''t! Give us the money and watch the economy turn around!

Sincerely,
Donna Sava
Franklin, TN
Reply to this comment
by cruiser1940 November 18, 2008 9:36 PM PST
Who is going to help the people?

Credit card company interest rates can exceed 35%.... (even if you are current, but have been late a few times...

They should not be able to charge over prime + 2 or 3%, and that should be a fixed rate for the life of the loan.

You place money in a saving account, and receive almost nothing. But they want money from the people at a low interest rate, and may not even loan you any of that money.

Will you help start a movement for the people?

Thanks
Reply to this comment
by cheyenne721-2009 November 19, 2008 4:36 AM PST
if democrats receive a filibuster proof 60 seats in senate we are all in trouble. and if they do i am pulling all my investment money out before i have to share the wealth. democrats can all go strait to hell. now the real tax increases start so hold on to your wallet everyone. we may as raise the white flag and become the socialist commies the press wants us to be,goodbye freedom and liberty, hello bondage and bigger government.
Reply to this comment
by catmill November 19, 2008 8:36 AM PST
The massive bank bailout was President Bush''s farewell gift to special interest. They should bail out the auto industry, they should limit or deny bonuses to top executives their million dollar annual salary is enough. They should do the same with the bank executives, get rid of their bonuses also, these people are GREEDY. Instead of being gratefull they feel they are entitled.
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by darkblue4 November 19, 2008 9:05 AM PST
Give the bailout money to the first of the big three that can manufacture a hydrogen fuel cell vehicle (GM already has one on the board). Make it a race of old fashioned ingenuity and freedom from oil dependence. Simultaneously encourage investment into suppliers as they change over from gasoline to the new fuel supply. Allow consumers in trouble a one time deal to consolidate their debts, bring back usury laws to keep a cap on interest and inflation rates, bring back tax deductions on interest paid for vehicles and other loans instead of just mortgage interest. Tout layaway as a better way to buy, and use income ability instead of credit scores as the principle method of determing loans.
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by rickfidler1 November 19, 2008 6:47 PM PST
Dear Susie and Little Joe kid because of the Republican House and Senate daddy and mommy no longer have jobs. They will bail out the big wall street people but us blue collar workers of the auto industry and all of those depending on auto workers who spend their wages on goods and services are nothing but trash to them. Your Grandparents have lost their health care and can ill afford presents. They have to dip into their savings to help us not to lose our homes. We are the casualties of Republican Capitalism without Social Conscience. Santa will not come to millions of homes this year because of them. They could care less if we have jobs, health care or opportunities for higher education. They are heartless Republicans.... remember that our children. This Christmas will forever be known as the Republican Christmas. The dread will be in our historic memories forever. So kids the answer is there is no Santa this year .....thanks to the Republicans in our American Congress.

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by sb4job November 19, 2008 7:23 PM PST
The Construction, Home Builders, Home Improvement Retailers have been dealing with many more financial challenges & problems than the Big 3 Auto makers. In America, we have the opportunity to make it big or go bust; which should be kept fair to all = big business or small ... not to mention that small business employs more than 75% of all of americans.

I ask myself: Why hasn''t the media taken up the fight against these big business bail-outs? Answer: Big Business pays the news casters salary by buying commercials.
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by treblhooks November 19, 2008 7:32 PM PST
I could not agree more with Donna from Tennessee. How do the regular working class folks of this country get in the handout line that big business has started forming for itself? If that money were used to help out the working class I think it would do a lot more good than helping three car companies whose CEOs and executives have their heads in the sand for the last 20 years so.How about helping the ones who are losing their homes because of the unscrupulous realty industry that handed out ARM loans like candy to those who really couldn''t afford the house they were buying but were "helped" to qualify. C''mon Washington, you let this mess happen, now help us out of YOUR mess!
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by kpandco November 19, 2008 11:58 PM PST
What happens when a cell takes more than it needs? It grows. It gets bigger, and bigger than all of the other cells. When a human does this, they call him prosperous. When a cell does this, it''s called cancer, and eventually it''s greed will kill the entire race, er.. I mean body.
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by aplan1 November 20, 2008 3:08 PM PST
I have an idea for some help with the various bail outs. I think the assets from the Rep. Nat''l Comm and the Dem. Nat''l Comm should be used to help pay. It might cut down on special interest donations and it would certainly be the first time politics actually helped.
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