Desperate Automakers Launch PR Campaign

Big Three Deploy Grassroots Tactics, Web Sites, Newspaper Ads For Bailout Help

(CBS/AP)  Still, bankruptcy is tough medicine. While creditors, suppliers and management take a hit, so do a Chapter 11 company's workers. Besides cutting jobs, pay and benefits, United Airlines also eliminated its pension plans.

Labor unions wince at the idea. Testifying before Congress last year, AFL-CIO Treasurer Richard Trumka decried a bankruptcy system that he said "has become effectively a device for the wholesale transfer of wealth from workers to other creditors."

When Dodd asked United Auto Workers President Ron Gettelfinger this week whether prepackaged bankruptcy backed up with federal guarantees was any more palatable, Gettelfinger cited risks to pensions and to retirees who could lose health benefits and are not yet eligible for Medicare.

What's more, auto executives argued that the stigma of bankruptcy would drive customers away, eliminating a Chapter 11 company's share of the market.

With an auto bailout dead for now, the bankruptcy debate is likely to rear up again next year.

President-elect Barack Obama had urged the Bush administration and Congress to find a way to help General Motors Corp., Chrysler LLC and the Ford Motor Co. In an interview with CBS' 60 Minutes that aired Sunday, he indicated that bankruptcy may not be the answer.

"What we have to do is to recognize that these are extraordinary circumstances," he said. "Banks aren't lending as it is. They're not even lending to businesses that are doing well, much less businesses that are doing poorly. And in that circumstance, the usual options may not be available."

Robert Reich, who was Labor Secretary under President Bill Clinton and is now on Obama's board of economic advisers, has suggested that a company receiving federal aid at least pay a price similar to Chapter 11.

"In exchange for government aid," he wrote in his blog last week, "the Big Three's creditors, shareholders and executives should be required to accept losses as large as they'd endure under Chapter 11, and the UAW should agree to some across-the-board wage and benefit cuts."

Rep. Barney Frank, chair of the House Financial Services Committee, is one is critical of calls for labor to renegotiate contracts with automakers, calling such tactics "union busting."

[lab1960]

Just like these bunch of bozo''s to go on a marketing campaign to have people belive your message, even if it''s useless. For years they had not built safe cars like the European car''s. So they just marketed then as such. I hope our governement lets them fail the miserable dath they deserve!

[observer2020]

Oh yeah, let''s launch a hugh ad campaign that costs millions. And in the same breath, fire a bunch of hard workers because they can''t afford them. Now that makes sense. Shart building cars that are nice AND are efficient. Get away from the huge pickups and the SUVs (So Useless Vehicles).

[mollydtt]

These auto companies are going to fail anyway--they haven''t learned any lessons and here Honda is expanding and thriving. Propaganda won''t help much at this point. If anyone buys a car in the next few months, you can bet it will be Nissan, Honda, Hyundai, Toyota....

[usclimey]

Interesting; we''re running out of money, but we still have enough to pay for begging letters in the newspapers. Hmmmm.

[txgrouch2007]

How about building green cars with renewable fuel? I''''d buy one....
Posted by earache4 at 07:12 AM : Nov 21, 2008

OK, I''ll paint my 1996 Toyota green. You can renew the fuel by driving it to the gas station any time you want.

Would you pay $140,000 for it? No, really. I need the money.

[earache4]

How about building green cars with renewable fuel? I''d buy one....

[txgrouch2007]

It''''s easier to destroy from within the tratiors are runnning the US GOVT
Posted by itdfactsu at 12:09 AM : Nov 21, 2008

Don''t look now, but about half of those traitors are DEMOCRATS.

Next year, they will be THE MAJORITY.

The people have spoken. They WANT our nation to be run by traitors. LIKE THEY ALWAYS HAVE.

Is it any wonder we''re in the shape we''re in?

[txgrouch2007]

American workers are getting hosed yet again. These are just the last steps remaining to kill whats left of the middle class in America. Keep blaming Union workers...you''''re way off.
Posted by Beach671 at 04:26 AM : Nov 21, 2008

Right on. And in case you hadn''t noticed - most of the union bashers here are PAID SHILLS working for the auto makers.

[txgrouch2007]

Are you learning yet?
Posted by harbinger09 at 12:16 AM : Nov 21, 2008

Not from YOU.

[buckscc]

The American Auto Manufacturing Management and it''s Union has forgot about it''s Customers and don''t care about them.

We don''t need them, they need us. Once they are gone, their customers will just go across the street to a Honda or a Toyots dealer. The parts industries wil just have to convert to dealing with Honda and Toyota parts. Other than the names, we won''t miss them. Honda and Toyota will more than happily fill the void when the "Big Three" are gone and I''m sure will do a better job at it. If Honda and Toyoda would change their name to "Smith Cars" and "Jones Cars", then Americans won''t mind at all.

That''s why I''m buying a Honda.

[beach671]

Everyone thinks it''s the workers in Detroit making too much money that brought Detroit down. Did you know they admitted they made $15,000 profit on every single SUV? Where did those profits go? Corporate bonuses, stock holders profits, and CHINA. There''s some in Detroit that have been dumping Billions into developing auto manufacture in China. WE paid for that. WE will suffer and have been suffering so the corporate elites and stock holders profit.

American workers are getting hosed yet again. These are just the last steps remaining to kill whats left of the middle class in America. Keep blaming Union workers...you''re way off.

The last Union to bust after Detroit will be our military members. With less Federal Income they will lose their 20 year retirement option and wages as well. Then America will be a 3rd world nation. We''re almost there.

[harbinger09]

China will probably buy the BIG 3 if the corrupt US GOVT doesn''''t help out the three companies that helped win world War II

But this all fits nicely into the neocons long term economic plans for the USA

It''''s easier to destroy from within the tratiors are runnning the US GOVT

Posted by itdfactsu at 12:09 AM : Nov 21, 2008

Guess you did not hear that China''s markets are melting down and already, the government has had to float monies in China for their own local bailouts as well as print more for their own markets (printing eternal money with no backing means hyper inflation will be there --ie 6.00/gal milk, 4.00/gal gas, 120.00 barrel oil...etc.

[harbinger09]

The automaker CEOs in the corporate jets begging for money are like the parodied welfare queens with the cadillacs wanting gub''ment aid. Ah...sweet irony.

[harbinger09]

Guess you forget, I own 3 of my own businesses, none affliated with the auto business in the last decade.

And you still sound like the same idiot that posted away during the election with BS.

Posted by rickwar at 04:14 PM : Nov 20, 2008


If your businesses buy or sell any service used by Americans you will be affected and hurt by the big 3 going under. It is like this:

Big 3 file chapter 11, get rid of workers, they have no jobs, lose their homes, default on credit cards. Credit market tightens up more with companies squeezing their remaining cardholders. As these people no longer patronize other businesses (restaurants, stores, electronics, dentists, drs, tax preparers, dry cleaners, etc, these people have to cut back and lay off-as they cut back and lay off, others follow suit until no matter what you think you do that is immune--you too are a victim of the initial action.

Dominoe effect. The chief American fault right now, is failing to connect the dots or see how it all is connected and when one falls--inevitably it all can fall. This time is different. Unless you are a self sufficient farmer, with your home paid off, with your own cattle, pigs, sheep and crops and no need to work--you WILL be hurt in this recession. The sad thing will be if you fail to see how the pain of others will eventually trickle or cascade down to YOU.

[harbinger09]

Higher prices means wages are higher. That includes YOU. That makes it EASIER for us to buy the bare minimum of essential imports (such as molybdenum, which simply doesn''''t exist in usable quantities within our borders, so we have to import it).

If we didn''''t import so much, we wouldn''''t care if nobody buys our exports. We will always have something that isn''''t available anywhere else, so our exports of those items will balance out the essential imports.

Posted by txgrouch2007 at 07:22 PM : Nov 20, 2008


Not necessarily. Sometimes higher prices (as with a lot of cars) means that somebody, somewhere is making a lot of money. Most Chrysler cars have their engines, and castings made in Mexico where the wages are less than 4.00/hr--but the money is not passed back to the American worker As long as the parts are returned and assembled in America the big 3 can claim the car is American made--but the savings is NOT picked up by the American worker--it is passed on in mgmt bonuses and dividends for shareholders. Multi hundred million dollar salaries and bonuses don''t just spring out of the air and the avg Chrysler worker makes about 45K gross. Compare that to a CEO who makes over 100 million in the same year.

Are you learning yet?

[harbinger09]

Unions are soooo 19th and 20th centry!!! Let the Big 3 go bankrupt and go to China and get "RETOOLED" for the 21st Century!!! Goodbye UAW and their Union Bosses!!!

Posted by Mr_Man_2012 at 11:27 AM : Nov 20, 2008


When the unions are truly destroyed--then this country will know true horror and will be 3rd world. If you don''t know or recognize the value of unions (then and now) read "the Jungle" by Upton Sinclair--owners do not pay a fair wage as a rule--they pay the least amount that the market will let them get away with. When there are no more unions, that will be a very low wage with no pensions or healthcare, safety measures or protections, indeed.

[itdfactsu]

China will probably buy the BIG 3 if the corrupt US GOVT doesn''t help out the three companies that helped win world War II

But this all fits nicely into the neocons long term economic plans for the USA

It''s easier to destroy from within the tratiors are runnning the US GOVT

[harbinger09]

Clearly, the Big Three *are* selling what the US public is demanding...and they *ARE* profitable...until the Wall Street/GOP created economic meltdown.
Posted by justaguy11 at 05:50 PM : Nov 20, 2008

Soooo demanding that they were selling cars, with 0 down, 0% interest for 60 months and in some cases with no credit checks--sounds like desperation to me--going on since 2004.

[harbinger09]

Romney has an excellent idea. Let the Big 3 go into Chapter 11 which allows them to tear up the terrible UAW labor contracts thereby lowering their costs immediately and big time. The feds could guarantee any bank loans but this has to be conditional.

I would not worry too much about the dealerships. In my city, we have about six major dealers. All six sell different brands such as Ford, Chevrolet, Nissan, Toyota, Volkswagen. If one brand is not selling another one is. This serves to keep them profitable.

Posted by ramos937 at 09:56 AM : Nov 20, 2008


Just remember that Chapter 11 allows the automakers to discharge most debts--that includes, healthcare debts, renegotiate pensions, payments to subcontractors(a lot of car computers, electronics, seats, glass, etc mfg will NOT get paid--in addition, it allows them to get rid of workers, which means local restaurants, dentist offices, mall stores and many service industries that depend on business from those workers will fail. Cascade, doimino effect. I don''t believe in bailouts--but at least I know that if they crash--it will ripple across this country and destroy a lot of other businesses--perhaps one you own or work in also--all interconnected.

[harbinger09]

MESSAGE to the bankers. automakers and any other business looking for a handout----FROM THE AMERICAN PUBLIC:

If our economy is going to collapse and we are going to be fvcked--we prefer to take all of you with all of us. Have a nice day.