Despite Big 3 Pleas, Auto Bailout Stalling

CEOs Berated On Capitol Hill; Congressional Leaders Say Deal Is Unlikely Before Year End

(CBS/AP)  Top Senate Democrats suggested Wednesday that a bill to rescue the Detroit Three automakers was stalled and called on the Bush administration to take steps to help save the industry if congressional efforts falter.

Senate Majority Leader Harry Reid of Nevada sought to lower expectations of reaching a deal on the $25 billion proposal before Congress quits for the year.

While he told the Senate he still hoped lawmakers could agree to an auto deal in the "next day or two" of the current lame-duck session, he added: "If we can't do it here legislatively, I would hope that the secretary of Treasury would listen loud and clear because they could take this into their own hands and do what I think is appropriate from their perspective."

Banking Committee Chairman Chris Dodd, D-Conn., was even more downbeat, calling the possibility of reaching agreement "remote."

"I don't see how in the next few days this is going to move forward," Dodd said. Still, he added, "That does not mean that there are not opportunities." He suggested that the Federal Reserve could possibly step up to the job.

The difficulties of striking a deal on the package before a new president and a new Congress with expanded Democratic majorities take office appeared to be too great to overcome. The deadlock persisted even as the heads of General Motors, Ford and Chrysler returned to Capitol Hill Wednesday to ask skeptical lawmakers for a $25 billion lifeline to keep their crippled industry from collapsing.

General Motors Corp. CEO Rick Wagoner told the House Financial Services Committee that collapse of the U.S. auto industry could lead to a loss of 3 million jobs within the first year and ripple throughout communities around the nation.

In sometimes contentious testimony, Wagoner was pressed on when GM would run out of money if the loans weren't extended.

He said he couldn't say precisely, but estimated that the company now was burning through "$5 billion each month."

But, as CBS Evening News correspondent Bob Orr reports, the auto executives seemed to undercut their own "desperate times" pitch when lawmakers learned they flew separately to Washington on three expensive corporate jets.

"It's almost like seeing a guy show up at the soup kitchen in high hat and tuxedo," Rep. Gary Ackerman, D-N.Y., said.

The Big Three executives were ridiculed for asking taxpayers to pay for years of production and management mistakes. As Rep. Jeb Hensarling, R-Tx, put it, "How do I know that you will not become the next AIG: $25 billion next month, $25 billion the month after that?"

CBS News asked the same question in an interview with GM CEO Rick Wagoner late Wednesday.

"We've really substantively restructured the cost side of the business and fed out a bunch of new models that are being well received," Wagoner said. But asked if he could promise taxpayers that he wouldn't be back for more money, he said, "I can't promise anybody because I don't know what's going to happen to the economy."

For General Motors, the goal is to limp to 2010, Orr reports. That's when new lower-cost labor contracts take effect, and when a revolutionary new electric car capable of going 40 miles with no gas will hit the market.

With the $25 billion emergency package, "We think we have a good shot to make it through this," Wagoner said. He said he anticipated that, if the package is approved, GM would qualify for about $10 billion to $12 billion of the money.

President George W. Bush and Republicans in Congress have been reluctant to use the Treasury Department's $700 billion financial bailout program to finance the loans. And White House press secretary Dana Perino has said Congress should draw the funds from an Energy Department program established by law last year to encourage production of fuel-efficient cars.

Earlier Wednesday, Sen. Richard Shelby, the senior Republican on the Banking Committee, said Wednesday he doesn't believe there will be a turnaround in the troubled U.S. auto industry until its top management is ousted and the manufacturing model sacked.

At a House hearing Rep. Barney Frank, D-Mass., pointedly suggested that Congress is betraying a classist bias by intervening to help white-collar bankers but not blue-collar auto workers.

CEOs weren't the only ones pressing lawmakers to step in with a rescue package. Local dealers blanketed congressional offices this week to make the argument to legislators that an auto bailout is necessary to prevent pillars of thousands of local communities from crumbling.

A Senate vote on an automotive bailout plan, which would also extend jobless benefits, could come as early as Thursday, but it currently lacks the support to advance.

In an op-ed essay in Wednesday's editions of The New York Times, Mitt Romney, a candidate for this year's Republican presidential nomination, wrote: "If General Motors, Ford and Chrysler get the bailout that their chief executives asked for yesterday, you can kiss the American automotive industry goodbye. It won't go overnight, but its demise will be virtually guaranteed."

The financial situation for the automakers grows more precarious by the day. Cash-strapped GM said Tuesday it would delay reimbursing its dealers for rebates and other sales incentives and could run out of cash by year's end without government aid.

[demdump]

Earth to the not-exactly-Big 3 CEOs: When you fly to Washington to beg for an industry bailout, do yourselves a favor and leave the corporate jet at home. ABC News has thrown Rick Wagoner, Alan Mulally and Bob Nardelli directly under the bus, reporting that each exercised costly private jet perks for their joint appearance before Congress instead of setting an example by flying commercial.

In his taped report, ABC''s Brian Ross points out that Wagoner''s round-trip on the company G4 cost approximately $20,000. A first class, round-trip commercial ticket from Detroit would have instead cost around $900 (multiplied by however many people Rick had in his entourage). Ross questioned Wagoner about his using the jet as he was leaving the hearing. The GM CEO replied that it was used only for "urgent situations." Alan Mulally also flew private, presumably on the same Ford-owned jet that ferries him and his wife home to Seattle on the weekends. No details were given on Nardelli''s travel specifics, other than that he too arrived on a private jet.

[smurfcrusher]

Bankruptcy will allow the Big 3 to reorganize, and would be the best thing for them.

They can be bailed out later, if necessary, after they perform that good-faith gesture.

[sorceress62]

Finally there is someone looking out for us little people...I agree with the following statement...("Sen. Richard Shelby, the senior Republican on the Banking Committee, said Wednesday he doesn''t believe there will be a turnaround in the troubled U.S. auto industry until its top management is ousted and the manufacturing model sacked".) How can the Executives beg money from the taxpayers with the salaries and bonuses they recieve yearly. I did not see these men forgoing their bonuses as some other did, so why should us taxpayers help out? I feel for the people who make the cars and the products needed to make the cars, but I do not feel for the executives that continue to make the same product that has been failing them for years.

[aaabee1]

All three CEOs -- Rick Wagoner of GM, Alan Mulally of Ford, and Robert Nardelli of Chrysler -- exercised their perks Tuesday by flying in corporate jets to DC. Wagoner flew in GM''s $36 million luxury aircraft to tell members of Congress that the company is burning through cash, asking for $10-12 billion for GM alone.

[demdump]

We understand that these are perks many CEOs enjoy, but when you''re about to stick your hand out for billions of dollars, it might help to suck it up and slum it in First Class like the rest of us. Oh, wait. Of course, the first class cabin on a Northwest Airlines jet isn''t as optimal for perfecting your presentation as a private, flying boardroom. On the other hand, a commercial flight would let the three CEOs all fly together so they can get their sob stories straight. Hang on to your wallets, everyone.

[aaabee1]

GM''s Wagoner parked his G4 private jet at a nearby airport. It''s one of a fleet of GM-owned luxury jets used to ferry executives around the world. Ford''s Mulally has access to a jet as part of his $28 million employment contract; it''s one of eight private jets Ford owns for its executives.

both quotes: http://www.washingtonmonthly.com/

[staplesla]

These bailouts are a joke. We''ve already given away $2 trillion but haven''t fixed the underlying problem which started this - housing. We must stop rewarding poorly managed companies with bailouts that have no oversight. All these execs seem to care about is vacationing with our money, and today we learn the automaker execs travelled in style to D.C. to beg us for this money.

I hear it argued that we must save the automakers to save jobs. But the total number of jobs provided by automakers and those dependent upon services to automakers account is only 846,000 positions. Yes this sounds big, but Walmart alone has 1.4 million employees. And furthermore, yesterday the automakers stated auto sales will be down to 10 million annually (from the 15 million last year). That to me says job losses/consolidation regardless of whether they get the money. And furthermore, they stated this money will only get them through March. Why are we not investing in our roads, alternative forms of energy, etc....each which would create millions of jobs?

Any bailout should be spent on fixing the housing crisis or it won''t matter if GM/Ford/Chrysler survive. If you can''t afford your mortgage payment, you surely aren''t going to buy a car.

If we don''t stop this bailout, this will set a precedent for the airlines to be next, then hotels/travel industry, then restaurants, etc. It''s got to stop.

Contact Congress and tell them to vote no.
http://www.emailthecongress.com

[aaabee1]

Where is this going to end? Corporations are like kids, what you do for one, you have to do for the others.

Thank you, Bush for all you have done for this nation''s wealthy.

[prounion]

1) We the union workers for the big 3 did not make the mistakes that has gotten our companies into this mess. 2)Where is american loyalty I would never ever ever buy a car from a company based out of japan they did bomb us (pearl habor) 3) who built the vehicals and materials that won the war that ensued after the pearl habor bombing. 4) if GM Ford and Dodge go down the 25 billion buck loan will look *** good. 5) why on earth shouldn''t the big 3 recieve a LOAN the congress gave AIG a 100 billion bucks and for WHAT? 6) IF IT WASN''T FOR LABOR UNIONS THE ENTIRE COUNTRYS WAGES WOULD BE LOWER. maybe you idiots want to work harder for less. 7) the jobs bank program is over its on its way out (thank god). 8) the union didn''t put the big 3 in this postion. 9) GM''s labor cost per vehical is the same as toyota. 10) no one has a problem driving the SUV''s Gm built in fact every SUV and Truck gm built has been sold that tells me people like them. I know i will not put my family i love into a death trap small car. and the private jet whoppy do 20 grand OMG stop the presses AIg recieves a 100 billion for NOTHING but heaven forbid the head of a company uses his jet to get to washington. If the big 3 fail this recession will turn to a depression and it will hurt the entire world it will have a global impact and you to will feel the pain. enjoy

[aaabee1]

I work in the building that is GM''s headquarters in Detroit. If anyone thinks these guys are serious about changing the way they do business, you need only look at the garage where they park their vehicles. Nearly every single one of them drives a big SUV - Escalade, Yukon, Acadia, Suburban. These cars are maintained and cleaned whenever the execs request the service. In fact, one can always identify a vehicle driven by an exec of the Big 3 in the winter as they''re the only cars on the road that are clean.

I realize that use of a vehicle is part of their compensation package. But they just don''t get it. Smaller vehicles? More fuel efficiency? Nope, the bigger the better. Every time I see a car come out of that garage, hubris is the word that comes to mind. That and over-compensation.

Posted by: rebellious on November 19, 2008 at 2:18 PM
http://www.washingtonmonthly.com/

[staplesla]

Contact Congress and tell them to vote no.

http://www.emailthecongress.com

[viscor]

"I don''t think they have immediate plans to change their model, which is a model of failure,"

I completely agree. If they get the bailout it will be business as usual.

"Bankruptcy will allow the Big 3 to reorganize, and would be the best thing for them."

It is my hope that it will "force the Big 3 to reorganize" .

"GM''''s Wagoner parked his G4 private jet at a nearby airport....."

This is a fundamental flaw in our whole economy/society. Executives flaunt their wealth at the expense of their employee''s and customers. It''s sickening.

CEO%u2019s in similar fashion to actors and professional athletes need to get their salaries in line with the rest of the population. It%u2019s insane that a baseball player, for example is poorly paid by only making $10,000,000 a year. What a sad statement about our society.

It%u2019s not possible to rationalize an explanation for why an actor, athlete or CEO deserves to make as much in a day as the rest of us make in a year.

[a_witness-2009]

I can''t believe you idiots still blaming Bush for the Auto Industry issue. This has been going on of more than 30 years with the Unions and Bush was not in office neither were the Clinton''s. The blame resides with the greedy unions which have out lived their usefullness. Once upon a time in knights and armor they served a purpose not today. If you can''t do the job and do it right without a union then you should be fired without the union covering your rear.

[ramos937]

Note to the Auto Executives - When you lobby (read beg) for a $25 billion bailout, do not arrive in DC in private multimillion dollar jets. It is extreme bad pr.

Frank is quoted, "Frank also said bankruptcy could mean abrogation of labor contracts. "We already have too much union busting," said Frank."

Rep. Frank has to get real. When the weighted labor cost of a UAW worker is around $78 versus $45 for a non union auto plant worker (who also has benefits), the latter will always outlast the UAW shop. The problem is that in today''s world, any union leader who urges his members to accept less to be competitive will be ousted in a NYC minute. The choice is be competitive or no jobs.

[slim1h2o]

Hey GM, Ford, or Chrysler;

I have a design for an Electric car. If you guys don''t fail, give me a call. This car would be capable to run coast to coast, without it being charged up every night.
It would be capable to do that in case of an emergency, but would be self sufficient.

[nriss1859]

"I know i will not put my family i love into a death trap small car"
why is it a death trap? cuz a big *** gm truck or suv w/some idiot that is driving will smack into you.
its those that cause the death traps..

buy a honda.

[slim1h2o]

Hey GM, Ford, or Chrysler;

I have a design for an Electric car. If you guys don''''t fail, give me a call. This car would be capable to run coast to coast, without it being charged up every night.
It would be capable to do that in case of an emergency, but would be self sufficient.

And let me add this; I don''t know why you guys didn''t come up with this...

[clathrate]

If they really want a bailout, then only grant it to them if they''ll pay in all of their personal assets into the deal. Only when they risk their own perosnal fortune should we even CONSIDER, let alone approve, a bailout.

I say Chapter 11 is the best way to go. Get lost Nardelli, you f-ed up Home Depot, now you''ll take down Chrysler. What a loser.

[viscor]

"I know i will not put my family i love into a death trap small car"

Then why are you driving your Hummer? Go out and get yourself the far safer M1 Abrams battle tank. Not only is it safer but you can blow away anyone who cuts you off.

[prounion]

One last thought to get my 2 cents worth out for the day. The media says we make 71 bucks per hour. Has anyone ever broke that down. Lets do just that in a rough estimate: 28 bucks per hour for wages thats around 58 grand a year. That leaves roughly 90 grand a year to buy my health insurance and pension, over a 30 year period thats 2,700,000 . WOW that must be one hell of a insurance policy. OK retirement at 30 and out that equals 3 grand a month roughly say u live 25 years after retirement thats 900,000 just for math purpose lets call it a even million. now we have 1,700,000 left to pay for my health care. Now even I can see that if they are paying that much for my health care for my life time they would be better of to just pay my Doctor bills considering I haven''t seen a doctor at all this year. And that brings me to my last point. If a employee of GM has this awesome health care and never needs it why does it still cost 71 bucks per hour to have this employee? Opps i forgot paid holidays that still leaves a easy million bucks you people think we earn and man o man i wish we did but i have never seen it.GET REAL

[noloyalisti]

Let''s have the oil corporations, wallowing in windfall profits bail out their fellow right wing fascists in the auto industry. They obviously all colluded to rape the American taxpayers.

[prounion]

they wont sell me a abrams battle tank or i would. P.S. i have a nice afFordable chevy Uplander van and a 3/4 ton truCK to Use for work and play. very sensiable vehicals. GET REAL

[bobnjersey]

[Romney, who was born in Detroit and whose father was an auto industry executive, wrote: "Without that bailout, Detroit will need to drastically restructure itself. With it, the automakers will stay the course - the suicidal course of declining market shares, insurmountable labor and retiree burdens, technology atrophy, product inferiority and never-ending job losses. Detroit needs a turnaround, not a check." ]

ahhh mitt, nobody said you have to just give them the money.

what you do is give them the money w/ conditions ... the conditions that they change their model ... that they drastictly restructure. conditions like producing a certain number of efficient cars ... conditions like only a certain percent of vehicles can be over a certain weight ... conditions like the unions must provide some concessions.

apparently being in born in detroit, and having a father who was in the industry doesn''t really mean a thing.

[prounion]

Our government and the oil companies STOLE from the american public in broad daylight 4 bucks a gallon for fuel and a month later its $1.80 souds like the best robbery in history. the movie deals should sart soon!!! GET REAL

[imavoter2]

I think the OIL COMPANYs should bail out the auto industry....since their profits are mainly generated from the money consumers spend to fill up the gas tanks of the products made by the auto industry!!!!!

[staplesla]

These bailouts are a joke. We''ve already given away $2 trillion but haven''t fixed the underlying problem which started this - housing. We must stop rewarding poorly managed companies with bailouts that have no oversight. All these execs seem to care about is vacationing with our money, and today we learn the automaker execs travelled in style to D.C. to beg us for this money.

I hear it argued that we must save the automakers to save jobs. But the total number of jobs provided by automakers and those dependent upon services to automakers account is only 846,000 positions. Yes this sounds big, but Walmart alone has 1.4 million employees. And furthermore, yesterday the automakers stated auto sales will be down to 10 million annually (from the 15 million last year). That to me says job losses/consolidation regardless of whether they get the money. And furthermore, they stated this money will only get them through March. Why are we not investing in our roads, alternative forms of energy, etc?....each which would create millions of jobs?

Any bailout should be spent on fixing the housing crisis or it won''t matter if GM/Ford/Chrysler survive. If you can''t afford your mortgage payment, you surely aren''t going to buy a car.

If we don''t stop this bailout, this will set a precedent for the airlines to be next, then hotels/travel industry, then restaurants, etc. It''s got to stop.

Contact Congress and tell them to vote no.
http://www.emailthecongress.com

[jjmurray9889]

Worked as a UAW member and as a member of management so I have seen both sides. Unions did not put the Big 3 in this position...but they sure helped! Auto workers and management cannot continue with the salaries/wages and perks/benefits that currently exist. Both need to take an equal cut (percentage-wise). From the union side, the UAW has to stop protecting workers who do not do the job they were hired for. When these folks crop up and you who work there can name them all, then management needs to fire them and the UAW needs to pat them on the back as they leave. No more loading up grievances to trade off to get them back (which is ILLEGAL under labor law...look it up). Management needs to develop cars that are more cost efficient to build, own and operate. They need to cut their fat out as well since you have managers who can''t manage warm spit out there too and who only contribute to problems with the UAW by trying to be lord and master of their domain instead of a leader and manager. Both sides need to start working together for the benefit of the COMPANY instead of for their own gain. A bloated contract and benefit program do you no good if your job goes away (asks the AAM workers at the Delevan plant in Buffalo, NY). If the company is not profitable then no one makes out. Chapter 11 will allow all of this to begin but it will be up to the folks on the floor (management and union) to suck it up and work together if the Big 3 have any hope at all of succeeding.

[demdump]

News broke today that German solar energy company SolarWorld has offered GM nearly $1.3 billion USD for the Opel brand that''s sold exclusively in Europe. Broken down by Euros, SolarWorld is offering 250 million euros cash and another 750 million in bank credits. In return it wants Opel''s four production plants and research center in Ruesselsheim, as well as rights to the Opel name and all that. A few other conditions that make the proposal extremely improbable are a complete break from GM and compensation payments of 40,000 euros per Opel worker for a total of 1 billion euros. So GM would basically get a billion euros for the sale of Opel and have to pay it all right back in compensation payments. Hmmm...

[bailthisout]

Let them fail. American cars suck anyway.

[bobnjersey]

[The blame resides with the greedy unions which have out lived their usefullness. Once upon a time in knights and armor they served a purpose not today. If you can''''''''t do the job and do it right without a union then you should be fired without the union covering your rear.]
[Posted by rightbehind at 03:20 PM : Nov 19, 2008]

knight in armor? try late 19th century, early 20th century when the labor abuses were systemic. go look up andrew carnegie and homestead for some history on the role of unions and why they came about.

if the job called for a 13 year old working 16 hours a day in unsafe conditions ... should they be fired for not complying? this is only one of the changes put in place as a result of their efforts.

you should be thanking the unions for your 40 hour work week, your disability insurance, the unemployment insurance, and a multitude of other benefits provided by many employers today.

[berniew4]

PRO union people..?? I guess my tax money should bail you out. I guess the 200,000 plus auto workers without a union with viable jobs should bail you out. Take the welfare money and bail you out ?? Like Obama sys"SPREAD THE WEALTH" to the autoworkers "DON"T BE SUCCESSFUL OR WE WILL GET YOU NEXT " We only bail out LOOSERS ???

[berkshirerez]

The US Automakers SHOULD fail! They have ignored environmental upgrades/fuel efficiency for decades. They could have been on the forefront of the ''new'' auto industry bringing the US into a new industrial age, but they deserve to shut down.

There are plenty of venture capitalists out there who would back a NEW auto manufacturer focused on automobile technology of the 21st century. It would be a hard lesson to learn for all of us, but in the end we could be a stronger country because of it. Notice how quickly the Chevy Volt was announced after gas prices skyrocketed! That''s because the technology had been sitting there for years--just watch ''Who killed the electric car?''.

The money normally given to executives for ''severance'' pay should instead be distributed to all of the companies'' blue collar workers.

I say good riddance! Maybe new American auto manufacturers would pay more attention to quality and efficiency!

[bobnjersey]

[I think the OIL COMPANYs should bail out the auto industry....since their profits are mainly generated from the money consumers spend to fill up the gas tanks of the products made by the auto industry!!!!!]
[Posted by IMaVOTER2 at 03:41 PM : Nov 19, 2008]

not a bad idea. maybe something indirect ... like taking the tax revenue from increses in gas taxes to help out the auto industry.

[bailthisout]

Unions had there place at one time. But this is not the time.

[jjmurray9889]

All of you screaming about more fuel efficient cars, more hybrids, more electric, yadda, yadda, yadda! If they would sell here then the Big 3 would be making them. SUV sales declined far less over the last year than other car models did, what does that tell you? That even with gas at $4 a gallon people were still buying their big vehicles. The Big 3 make what Americans want to buy. GM has 22% of the US market. Add in Ford and Chrysler and they''re over 50% and what are the best selling cars?? Not the Prius, that''s for *** sure. What they need to make are cars that are less expensive to make (cut labor costs, improve technology and/or develop new, cheaper materials), to operate and to own but are still attractive to...YOU, the American public which still wants 6 and 8 cylinder vehicles with plenty of leg/head room, a good sized trunk and lots of nice amenities. If the Big 3 can figure out how to give you that vehicle for less money they will be back in the black within a year.

[demdump]

The first real surprise at the LA Auto Show today came from Honda in the form of its FC Sport fuel cell design study. The designers at Honda''s advanced design studio in Pasadena decided to take advantage of the packaging flexibility afforded by a fuel cell powertrain and mounted it mid-ship driving the rear wheels. Using the vertical flow fuel stack mounted behind the driver and an electric motor between the rear wheels, the FC Sport is a three-seater in the style of the McLaren F1 where the driver sits in the middle of the car with the two passenger seats on either side and further back. The FC Sport is strictly a styling study right now, but we wouldn''t be surprised to see a fully functional version at some point. Check out Honda''s official press release after the jump and our high-res image galleries below.
And what do we got an SUV, TRUCKS , BITHUMMER , AND A BUNCH OF MORON''S RUNNING THE COMPANIES AND BEG FOR TAX MONEY..

[demdump]

All three CEOs - Rick Wagoner of GM, Alan Mulally of Ford, and Robert Nardelli of Chrysler - exercised their perks Tuesday by flying in corporate jets to DC. Wagoner flew in GM''s $36 million luxury aircraft to tell members of Congress that the company is burning through cash, asking for $10-12 billion for GM alone.

"We want to continue the vital role we''ve played for Americans for the past 100 years, but we can''t do it alone," Wagoner told the Senate Banking Committee.


While Wagoner testified, his G4 private jet was parked at Dulles airport. It is just one of a fleet of luxury jets owned by GM that continues to ferry executives around the world despite the company''s dire financial straits.

"This is a slap in the face of taxpayers,"

[jjmurray9889]

The UAW is no different today than the Big 3. Their leadership is composed of overpaid fat cats more interested in keeping their own positions than their "employees". The union leadership today IS management and until you union members realize they no longer see you as their brothers and sisters they will continue to talk you right out of your jobs.

[demdump]

Wagoner''s private jet trip to Washington cost his ailing company an estimated $20,000 roundtrip. In comparison, seats on Northwest Airlines flight 2364 from Detroit to Washington were going online for $288 coach and $837 first class.


After the hearing, Wagoner declined to answer questions about his travel.


Ford CEO Mulally''s corporate jet is a perk included for both he and his wife as part of his employment contract along with a $28 million salary last year. Mulally actually lives in Seattle, not Detroit. The company jet takes him home and back on weekends.

[demdump]

Plants Closed, Company Jets Stay
Mulally made his case Tuesday before the committee saying he''s cut expenses, laid-off workers and closed 17 plants.


"We have also reduced our work force by 51,000 employees in the past three years," Mulally said.


Yet Ford continues to operate a fleet of eight private jets for its executives. Just Tuesday, one jet was taking Ford brass to Los Angeles, another on a trip to Nebraska, and of course Mulally needed to fly to Washington to testify.

[woodjd42]

I now believe that we should bail out the auto industry provided that all the CEOs and board members and other officers put up all their wealth and possesions as collateral.

[fiberglass3]

We don''t loan money based on words. Where is their Business Plan?

The blueprint needs to be in place first. "Big Three" tell us how you are helping to switch us over to electric?

I''m still seeing TV commercials for big SUV''s getting only 23 MPG. Sorry folks but for me to buy a new car it must be partially electric powered and at least look like new technology. Not a Model T powered vehicle! I''d rather help out some of the newer electric start up companies.

[demdump]

GM CEO Rick Wagoner flew on this company jet to a hearing in Washington earlier this month at an estimated cost of $20,000.
(ABC)
GM and Ford say that it is a corporate decision to have their CEOs fly on private jets and that is non-negotiable, even as the companies say they are running out of cash.

Private jet travel is perhaps the greatest perk of all for CEOs, who say it allows them to travel more efficiently and safely, even in a recession.

AIG, despite the $150 billion bailout, still operates a fleet of corporate jets. The company says it has put two out of its seven jets up for sale and is reviewing the use of others. Though there are no such plans by GM or Ford.

[emily022]

They should not be bailed out. They have been making an inferior gas guzzling car for over 20 years. Honda and Toyota have been making green cars that last for a long time. They should not be rewarded for making a sub-standard car, when they have had the know-how to make a better car for over 50 years. They choose not to, so that their cars fall apart, and we have to spend money in their repairshop, and they don''t last long, so we have to buy a new car every 3-5 year. Reward those who work hard to make a good product that is better for the environment and the consumer. The big 3 don''t qualify for that.

[bobnjersey]

[All of you screaming about more fuel efficient cars, more hybrids, more electric, yadda, yadda, yadda! If they would sell here then the Big 3 would be making them. ]
[Posted by JJMurray9889 at 03:52 PM : Nov 19, 2008]

they would sell here if people really had to pay for their selfishly ignorant habits.

if you want a big vehicle that guzzles gas and has accomodations for 20 passengers ... even though you drive around 90% of the time w/ just you ... pay for it ... and pay dearly ... with a huge tax on the car that funds programs geared toward efficiency and conservation.

when the habits of consumers start contributing to issues of national security ... economic stability ... and long term success for the country ... then it''s time for those consumers who want to contribute to those conditions pay the price for the problems their creating.

and it''s time for the leadership in this country to do what they were elected to do ... lead ... and that doesn''t mean author legislation that helps whatever lobbying group has their ear ... and their wallet.

[slim1h2o]

Hey GM, Ford, or Chrysler;

I have a design for an Electric car. If you guys don''''''''t fail, give me a call. This car would be capable to run coast to coast, without it being charged up every night.
It would be capable to do that in case of an emergency, but would be self sufficient.

And let me add this; I don''''t know why you guys didn''''t come up with this idea.....

[demdump]

During the House hearing Wednesday, Rep. Brad Sherman, D-Calif., asked the three auto chiefs seated at the witness table before him to raise their hands if they had come to Washington on commercial airliners. No hands went up. Then he asked if any planned to sell their corporate jets. Again, no hands went up.


(AP)Sherman and Rep. Gary Ackerman, D-N.Y., told the auto executives they were having a hard time justifying to their constituents bailing out companies whose chiefs fly around in expensive private jets.

[danielle_mom]

When the government start putting companies on welfare, it is time to look at the subsidies that the government is providing to these companies. If these companies were not backed by the government, would they be run in a more conservative manner.

[demdump]

It''s a done deal. They are only holding the hearings to put on a show for the taxpayers, like they did in the 700bil bailout of wall street/banks. I guarantee it will pass. The majority in the congress and senate must now repay the UAW and big 3 for the campaign contributions and votes.

The UAW is a criminal...

[demdump]

The CEOs of the Big Three automakers reportedly flew private luxury jets to Washington to plead for a $25 billion taxpayer bailout to save their debt-ridden industry %u2014 ringing up tens of thousands in charges even as they cried poverty.

Recipients of eight-figure bonuses in 2007, the corporate cowboys used their executive perks %u2014 which for GM''s Rick Wagoner include the run of a $36 million Gulfstream IV jet %u2014 to arrive in style as they went begging before Congress.

Wagoner, whose flight reportedly cost $20,000 round-trip %u2014 about 70 times more than a commercial airline ticket %u2014 told Congress he expected about $10-$12 billion from the requested bailout.

"This is a slap in the face of taxpayers,"