Pelosi Pushes Aid For Auto Industry

House Speaker Calls For "Emergency And Limited Financial Assistance" During Lame Duck Session

(CBS/AP)  House Speaker Nancy Pelosi called for "emergency and limited financial assistance" for the battered auto industry on Tuesday and urged the outgoing Bush administration to join lawmakers in reaching a quick compromise.

Four days after dismal financial reports from General Motors Corp. and Ford Motor Co., Pelosi backed legislation to make the automakers eligible for help under the $700 billion bailout measure that cleared Congress in October.

In a written statement, the California Democrat said the aid was needed "in order to prevent the failure of one or more of the major American automobile manufacturers, which would have a devastating impact on our economy, particularly on the men and women who work in that industry."

"Congress and the Bush administration must take immediate action," she added. Administration officials have concluded that the bailout bill that passed earlier does not permit loans to the auto industry, but lawmakers are expected to return to the Capitol for a brief post-election session beginning next week.

Senate Majority Leader Harry Reid, D-Nev., also supports help for the industry, and he issued a statement saying Democrats were "determined to pass legislation that will save the jobs of millions" as part of a post-election session.

"This will only get done if President Bush and Senate Republicans work with us in a bipartisan fashion, and I am confident they will do what is right for our economy," he said.

In 1979, the government famously bailed out Chrysler with a $1.5 billion loan, which the company paid back just four years later. But this time, critics complain General Motors, Ford and Chrysler should not be rewarded for bad management, reports CBS News business correspondent Anthony Mason.

"The Big Three make products that Americans don't want to buy," Dan Ikenson, of the Cato Institute, told CBS News. "So shouldn't you at least do that before you ask for a subsidy from the U.S. taxpayer?"

Michigan Gov. Jennifer Granholm has a different view.

"This industry supports one in ten jobs in the country," Granholm told CBS' The Early Show on Wednesday.

"If this industry is allowed to fail, there will be a ripple effect throughout the nation," she said. "This government decided that it was going to step in and throw $700 billion at the financial sector. We're just asking for a fraction of that."

The plight of the industry has drawn attention from the White House and the incoming Obama administration in recent days, as well as among lawmakers.

Last week, President-elect Obama prodded the Bush administration to do more to help the industry, and on Monday, aides said he raised the issue with President Bush in an Oval Office conversation meant to underscore a smooth transition of power.

Officials familiar with the conversation said the president replied he was open to the idea.

Before adjourning for the elections, Congress passed legislation providing for $25 billion in government-backed loans to the automakers to prod them to retool their factories to make more efficient vehicles.

Since then, executives from GM, Ford and Chrysler LLC and officials in the United Autoworkers union have called for more than that to avert a possible collapse of one of the nation's most basic industries, including a $25 billion loan to help keep the companies afloat and $25 billion more to help cover future health care payments for about 780,000 retirees and their dependents.

GM and Ford reported last week that they spent down their cash reserves by a combined $14.6 billion in the past three months. Ford said it would slash more than 2,000 white collar jobs.

GM's sales fell 45 percent in October; it's bleeding $2 billion a month and can't borrow, leaving the world's biggest automaker on the brink of bankruptcy, reports Mason.

"We are down to days; maybe a couple of weeks," Rebecca Lindland, an auto analyst at Global Insight, Inc., told CBS News.

If even one of Detroit's Big Three fails, according to a new study, 2.5 million jobs could be lost as the impact spreads from workers to dealers to suppliers, reports Mason.

"This is not a vacuum," said Lindland. "This is not just one company. This is a domino effect. Where one company goes down, you're going to see the industry go down as well."

Pelosi's statement did not specify how large an aid package she prefers.

Instead, she said she had asked Rep. Barney Frank, D-Mass., chairman of the House Financial Services Committee, to draft legislation.

A companion effort is under way in the Senate.

The Senate is scheduled to meet next week in a post-election session, but until Pelosi issued her statement, it was not clear the House would follow suit.

The House already has passed legislation to provide additional unemployment insurance benefits for some of the growing ranks of the nation's jobless, as well as a separate measure to stimulate the economy.

That meant the Senate could have passed either or both bills and sent them to the White House for Bush's signature without further action by the House.

Pelosi's announcement changed that, and raised the possibility of a post-election session that covers more areas.

The Bush administration, for example, has said that enactment of a free trade agreement with Colombia is its top priority in Congress.

Many Democrats oppose the proposed agreement as written. But it is unclear what, if any, compromise might be possible that would allow auto assistance and a trade agreement to be the last major measures signed into law by the outgoing president.

In her statement, Pelosi said any assistance to the industry should include limits on executive compensation, rigorous government review authority and other taxpayer protections.

[hawksprings]

I''m just sick of these Democrats and their Corporate Welfare!
Democrats don''t care about the little guy! They''re only for rich corporations!

[rational_1]

''Pelosi Backs Aid For Auto Industry''

Of course she does - she''s a dingbat! One hundred years ago she''d have been bailing out the buggy makers.

Lucky for Pelosi she must think she''s playing with Monopoly money. There''s plenty for every badly run business (you listening Circuit City?) as well as for universal health care, our military and, for sure, there''s going to be enough to ensure social security is solvent in twenty years when it''s time for me to starting withdrawing the money I''ve been contributing.

These fools (Repubs and Dems alike) are going to bankrupt the lot of us. Or am I forgetting some gigantic pot of gold that hasn''t been figured into the equation? We keep voting in whoever promises the most goodies, not once considering who will ultimately end up paying.

[hypnotoad72]

Posted by rational_1 at 04:07 PM : Nov 11, 200
--

100 years ago, Henry Ford built up his company by paying his workers enough to be able to afford one.

http://www.planetpapers.com/Assets/292.php

http://www.pbs.org/wgbh/aso/databank/entries/btford.html

[hypnotoad72]

I''''m just sick of these Democrats and their Corporate Welfare!
Democrats don''''t care about the little guy! They''''re only for rich corporations!

Posted by HawkSprings at 03:58 PM : Nov 11, 2008
---

You''ll find plenty of Republicans supporting it too; and it''s still the President who gets to sign or veto it.

I wish it was as one-sided as you suggest.

[hawksprings]

Obama will make everything perfect.

[erasmus81]

Obama will make everything perfect.

Posted by HawkSprings at 04:16 PM : Nov 11, 2008

I know. I''m glad you agree.

[ddaryl1]

I''m just sick or republicans who destroyed the economy with their trickle down economic plans, tax breaks for corporations who ship jobs overseas, and tax breaks for the wealthy in general

I thought trickel down economics worked because if the welathy had more money they would invest it into new technologies and infrastrucutre creating more jobs and making the ocuntry better.... Where did Reaganomics go wrong ???? Didn''t Bush give massive tax breaks to corps and wealthy... so where are all these jobs/infrastructure. Why 8 years later is the country in ruin.

If the middle class is not strong the entire foundation of this country will crack and fall. Guess what is happening. All you people complaining about unions and workers being paid to much are the problem. The wealth of this country shoud be in the hands of the middle class not the ivy elite who protect the few over the many

Republicans need to be willing to return that financial might to the worker or there is no chance of recovery, and that will be followed by a civil war.

It is coming their is no way we can co-exist

[observantx]

The auto industry big wigs have fought every attempt since after the 2nd world war to make their products safer, more efficient, less expensive, and easier to maintain and recycle. They sold fancy paint jobs and gimmicks with slick advertising and pretty girls instead of sound engineering and practical design. Their latest was to flood the market with enormous SUV gas hogs to haul two bags of groceries down 5 miles of freeway. Small, practical, efficient and safe were their dirty words.

So what happened? Toyota, Honda, Volkswagen and a host of others built the cars that Detroit should have built and have been kicking their butts in the marketplace since the early 70%u2019s.

All this time, the big bosses paid themselves very handsome bonuses and fought with the unions to reduce their wages, insurance, and retirement benefits. And what did they do with the money they managed to squeeze out of the unions. Retool their factories? Spend it on new efficient designs and concepts? No, it ended up in their wallets and there it stayed.

Now they come to Washington weeping crocodile tears. Boo-hoo-hoo! We%u2019re going to have to lay people off if you don%u2019t give us more money! They have nobody to blame for their selfish and very shortsighted business plan. They shouldn%u2019t get a dime unless the top two layers of management are thrown out with no golden parachutes. Then , just maybe, they could begin to make a decent product.

[yongamerica]

Pelosi''s performance in the senate is an embarrassment. The lady should recognize her ineffective leadership and step down. She and GW Bush shares many similarities, one being not being able to justify their agenda to their constituents.

The sooner Pelosi disappears from a leadership position the sooner America will be back on track to recovery.

[triplet-man]

Soo... the "average" automaker is 3 months from total bankruptcy and ruin.... just like the average over extended working American HuH? Sounds like they should be paying for some "insurance" when their profits are outrageous - in case things go bad sometime!
Don''t get me wrong I don''t want good Americans to lose their jobs, but the executives are responsible for running this company into the ground and perching themselves so precariously on the edge of HUGE profits or bankruptcy. It''s rediculous, and they will take their millions and continue to live a "lesser" lifestyle that would be very agreeable to ANY of us down here working for a living.

[anitaymoore]

No offense meant to anyone in the auto industry, but if the government bails the auto industry out...where does it end? I happen to work in the Aerospace Industry, it''s doing HORRIBLY and has been since 9/11...in fact the company I work for had layoffs AGAIN today. No one is bailing us out.

If they REALLY want to do a bailout, how about taking that money they keep giving to the the insurance companies/banks etc....and go directly to the mortagage companies and pay off mortages? How about going DIRECTLY to the credit card companies and paying off credit cards? Talk about a stimulus...take the money DIRECTLY to where we are having to funnel it ourselves and bailing US out, so that we have more money to spend, so we can go shopping and help the economy. How about doing that?

[deathofusa]

Yes We Can! Lol.

[lovegetpeace]

This is Capitalism at it finest!

The Realistic Definition of Capitalism should be changed in all world Dictionaries.

[sunbum33919]

Pretty soon the government will have bailed out every (own) every company in the U.S....... there is a word for that...... and we''ll all be wearing our matching hats, suits, and carrying our little red book. Stay in your subdivisions; let me see your papers!!

[sunbum33919]

Yes,,,,, a healthy pay cut for ALL politicians..... I think they should live in a dormitory, be bused to and from the Capitol building, eat in a cafeteria in the basement of the dormitory, wear uniforms, and have an in-house clinic. I can''t wait for him to take office because I know, him being the messiah, he''s gonna take all my worries away...... and give them to someone else.... hope it''s nobody I know! Plunk your magic plunker froggie!!!

[hitoyou1]

Pelosi needs to be removed. She is an embarrassment. They have a wprd for her kind on the street, it starts with W, you could say she is a no good B

[cpelzar--2008]

This is partisan politics and pay back for the Democrat constituency in the UAW. All this is is buying votes and paying back political debts.

NO MONEY FOR DETROIT PERIOD......

[cpelzar--2008]

No offense meant to anyone in the auto industry, but if the government bails the auto industry out...where does it end? I happen to work in the Aerospace Industry, it''''s doing HORRIBLY and has been since 9/11...in fact the company I work for had layoffs AGAIN today. No one is bailing us out.

If they REALLY want to do a bailout, how about taking that money they keep giving to the the insurance companies/banks etc....and go directly to the mortagage companies and pay off mortages? How about going DIRECTLY to the credit card companies and paying off credit cards? Talk about a stimulus...take the money DIRECTLY to where we are having to funnel it ourselves and bailing US out, so that we have more money to spend, so we can go shopping and help the economy. How about doing that?

Posted by anitaymoore at 04:42 PM : Nov 11, 2008

Unfortunately most of your fellow country men, will just charge up those debts again and we will re-visit this in another decade. How about self responsibility and if you have too much debt, too bad everyone makes mistakes but how do we stop the mistakes by bailing everyone out? what kind of lesson is this?

This is just ridiculous. we will become a beggar nation before our eyes.

[cpelzar--2008]

"Since then, executives from GM, Ford and Chrysler LLC and officials in the United Autoworkers union have called for more than that to avert a possible collapse of one of the nation''s most basic industries, including $50 million more to help cover future health care payments for about 780,000 retirees and their dependents."

I hate the UAW, I want the Government to send me the money I have lost on my 401K. Why should these UAW *** get their retirement secured and not mine.

Keep this kind of *** up and Obama''s stay to the White House will be very short.

[petro49l]

New GM plants for making small cars will produce vehicles at less price and fuel efficient mpg. Vehicles featuring reduced size and weight get better miles per gallon. Germany has designed cars with a small powerful engine. Banks should lend money to General Motors to build modern facilities offering good union jobs (why eliminate the Chrysler Wilmington site?).

[triplet-man]

"Since then, executives from GM, Ford and Chrysler LLC and officials in the United Autoworkers union have called for more than that to avert a possible collapse of one of the nation''''''''s most basic industries, including $50 million more to help cover future health care payments for about 780,000 retirees and their dependents."

I hate the UAW, I want the Government to send me the money I have lost on my 401K. Why should these UAW *** get their retirement secured and not mine.

Keep this kind of *** up and Obama''''''''s stay to the White House will be very short.


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Posted by CPelzar at 05:32 PM : Nov 11, 2008

AGREED! maybe if the FN unions weren''''t sucking the blood out of the Big 3, the Big 3 would still be in business!

-- JOIN A UNION !! Then you could have the benefit of a "group" fighting for YOUR rights too!

[triplet-man]

CPelzar --

Join a union. That''s what they are organized for - to protect your rights. grin

[triplet-man]

I have a secure US job. And Union (as in a GROUP of people like me) that will fight the BIG companies to make sure that we all have fair wages and good working conditions. It is ONLY by our collective bargaining that YOU have any kind of decent working conditions and decent wages anyway.
Why don''t we all just STOP paying taxes... THEN all the Gov. (Socialist) spending would dry up? LoL

[yongamerica]

Saturn doesn''t have union workers and has been very successful. Too successful, the unions and GM tries to shut it down but met fierce resistance. Maybe it could learn some of its own lessons from its Saturn company.

The Auto industry needs to collapse so it can rebuild itself. For decades it has been operating using obsolete manufacturing practices and producing poorly made cars. If it weren''t for the competition from Japanese Automakers, US made cars would still only last barely five years. GM has been selling many models at a loss for years.

[triplet-man]

pelosilover -

Obviously you don''t know the history of Unions in this great country of ours. Go back to High School.

[triplet-man]

yongamerica -

You cannot blame the unions for the companies downfall. The executives are the ones that are running the company too close to the edge of either BANKRUPTCY or Disgusting profits. They don''t seem to be able to manage their wealth.
The workers are just trying to keep up with inflations through collective bargaining.

[ioweign]

I''m shocked a liberal congresswoman in favor of government by out/bail out/take over of business. Government should seize all American private business. It''s coming. I''m telling you. Big Brother is coming.


There''ll be none of this private personal business privateering while we''ve got democrats to run things for us.

Posted by ThatGuy56 at 05:26 PM : Nov 11, 2008

Just pretend it is going to the banks/bankers

Treasury Made Controversial Tax Policy Change Under Cover Of Bailout Debate

Banks enjoy the windfall $140 Billion of Paulson''s secret modification to Section 382 of the Tax Code

Why is everything the GOP does a secret?

[ralan40]

Ford, GM, and Chrysler have had decades of competition from other car companies to get their act together. I find it very hard to believe that assistance from the government will make these companies more competative or prevent the closing of ancient plants filled with overpaid union workers.

Good thing Ohio at least has a few Honda Plants and the 100,000 jobs related to that to offset the job losses the big 3 have inflicted on our state.

As far as I''m concerned, My Honda Civic (89% made in the USA) is more "American" than my Father''s Ford (22% made in USA).

[triplet-man]

pelosilover

Let''''s see: pre-OSHA, pre-benefits, pre-HR rules, pre-government oversights UNIONS HAD their place...NOW they DON''''T!!! get over it!!!


------------------

Hmmm... are you sure?? Seems to be doing ME some good for about 10 years now. And IF .. they were gone - do you think the GOVT. would continue to take care of you ? And look out for YOU rights? Would they do a better job looking out for you, than YOU can do for yourself.
I hate to see someone so resigned to letting everyone and everyTHING else control their lives. BUt if that''s the way you choose to live. Go on with you hatred.
Just hang in there. WE''ll continue to fight for ALL workers rights in this country, and you can just sit back and enjoy the benefits of it.

[triplet-man]

ralan40

Join a UNION and YOU could be "overpaid" too!

I don''t know of ANYONE who really believes they are overpaid. INcluding the Execs that work for the big 3 automakers and the big wigs on Wall Street. Go out and get your own money then! Stop whining that someone else is "...overpaid"

[triplet-man]

Good thing Ohio at least has a few Honda Plants and the 100,000 jobs related to that to offset the job losses the big 3 have inflicted on our state.

As far as I''''m concerned, My Honda Civic (89% made in the USA) is more "American" than my Father''''s Ford (22% made in USA).

Posted by ralan40

Look for the UAW sticker on the inside of the doorjamb on your precious Honda. It''s there. Made by Americas finest OVERPAID workers.

[triplet-man]

Let''''s see: pre-OSHA, pre-benefits, pre-HR rules, pre-government oversights UNIONS HAD their place...NOW they DON''''T!!! get over it!!!


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Posted by pelosilover at 06:22 PM : Nov 11, 2008

You HAD your place... at a job ... that you are afraid of losing. I''m not scared of losing mine. Maybe the unions DO still have a place. Hmmm?

[mikezembill]

Pelosilover you do not have a clue about the unions if not for the unions you may be making 2 bucks an hour at best.

[triplet-man]

pelosilover

I have been a UNION member for 16 years. I mean that THEY have been to MY benefit for at least that long.
Furthermore Toyota and Honda have UAW plants in the United States (cuz they are smart) I know this because I get a list of "approved" (by the union) vehicles to buy to support my union (AMERICAN) brothers and sisters.

[mikezembill]

Pelosilover have you lost a job and have a younger person or the boss have his buddy take your job you do not have a clue do you.

[triplet-man]

I don''''t rely on some union to tell me what my time is worth, I don''''t rely on the prevailing wage for a pay increase, IF I don''''t sell, I don''''t eat!


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Posted by pelosilover

Ahh... now it makes sense. A sales person. Of course you don''t want anyone else to make a decent wage. But I would BET... that I still make more than you ... by the hour. Enjoy your long days and pressure.

[triplet-man]

pelosilover

How ARE the benefits in sales ? Paid vacation? (nope) paid holidays (nope)

All the time off that you can afford huh? Enjoy. I wouldn''t expect you to understand the REAL WORLD

[triplet-man]

rxzyu

Thank you for the support. I don''t believe the unions are a "dead horse" as SOME people do.

I can''t believe that some people really believe they have no use anymore. Oh well.

[mikezembill]

Now what i think of the way you look at it you are not worth 80 bucks a week if i were your boss i would fire your aS$ on the spot attitude is everything and your''s sucks. so pelosilover go and find yourself a real job and help your family do better.

[brianp55]

The patient is terminally ill...let it die in peace. Stop trying to prop up the anachronistic US auto industry with popsicle sticks and bandaids. The only way for the US to build cars that people want to buy is to have something rise from the ashes.

[mikezembill]

The Japanese auto companys pay the same wage that the others do the prob with GM and Ford they have been at this game longer both ae top heavy with white coller workers they do not produce anything.

[mikezembill]

The Japanese auto companys pay the same wage that the others do the prob with GM and Ford they have been at this game longer both ae top heavy with white coller workers they do not produce anything.

[mikezembill]

Pelosilover what do you sell.

[bracemic]

Bail them out!!!! I''m sorry, I''m being selfish because I live in Michigan. Trust me though, we absolutely need the bailout package.

[mikezembill]

Plosilover if you were passed up for a job maby it was your attitude like i said its everything or maby you just could not do the job with the union you may have gotten the job with some on the job training.

[mikezembill]

Bracemic you will get help and i hope fast

[carpriddler]

What does the auto industry have for a trade in? Just a minute, I have to check with my manager. OK, the boss wants to know how close to $25 billion will you go? We are not far apart here a billion or 2 more isn%u2019t going to change your lifestyle, you can cut back on 1 soda pop a day, or some other bad habit! Just think of the smiles on the voters faces when they drive to the polling places in a new Chevy.

[yongamerica]

How about trying a trickle up policy. Divide the $700 billion among every household in the US and let them "invest" in the economy. The money will trickle up through the auto industry into the banking industry in no time.

[mikezembill]

I think the goverment wants some company''s to go under then when it shakes out the ones that are left will make money and lots of it. This has been done before the ones on the edge are gone.

[txgrouch2007]

Plosilover if you were passed up for a job maby it was your attitude like i said its everything or maby you just could not do the job with the union you may have gotten the job with some on the job training.
Posted by rxzyu at 07:18 PM : Nov 11, 2008

Up yours.

At this point, straight white males who were born in this country are ENTITLED to have any d@*n attitude they want.

I keep saying - now that we have a "black" President, then either whites should get full minority benefits, or the Affirmative Action program should be ended. We whites have been taking it on the chin for too long.