White House Plays It Cool On Auto Bailout

Bush Administration Won't Be "Rushed Into" Deal For Distressed Automakers

(CBS/AP)  The White House sought Tuesday to play down prospects for an imminent bailout for distressed U.S. automakers and suggested any deal requiring taxpayer money will require major concessions by the parties involved.

"We are not going to be rushed into it," presidential press secretary Dana Perino declared.

Only a day earlier, President George W. Bush suggested that a bailout package would come sooner rather than later. "An abrupt bankruptcy for autos could be devastating for the economy," Mr. Bush said on Monday. "This will not be a long process because of the economic fragility of the autos."

The White House is reportedly considering tapping the bailout fund used to pump money into financial institutions. It had previously insisted that fund was off-limits for troubled automakers, but the administration has now concluded an industry bankruptcy would be too damaging, reports CBS News correspondent Peter Maer.

Perino said the administration was still working on details of the package and wants to hear more from all those involved, including key lawmakers and those in the industry. She said concessions need to be made in exchange for a rescue package that reportedly could reach $15 billion for General Motors Corp. and Chrysler LLC.

"If we're going to use taxpayer financing to assist the automakers, all stakeholders are going to have to come to the table and be willing to show that they are capable and willing to make really tough decisions about the way forward," Perino said.

Perino did not specify what concessions need to be made and by whom, but said, "I don't think that there's any possible way that this president would agree to allow taxpayer financing to go toward firms that are not willing to make tough decisions to become viable and competitive in the future. I just do not think that will happen."

GM and Chrysler have said they will run out of cash within weeks if they don't get help. Ford Motor Co. has said it has enough cash to survive 2009.

The administration indicated it would extend a helping hand to the domestic automakers after a $14 billion aid package to the auto industry failed in Congress last week in part because of a contention that the industry was largely to blame for its own problems.

Perino said at her daily news briefing that "I don't know of an imminent announcement coming from us," suggesting expectations for a quick decision were premature. "We are taking the time to try to do it right and weighing all of the options," she said.

"We will do it if we decide to do it, and we'll do it in the time that we think that is right," Perino added.

Asked about her use of the word "if," when Mr. Bush had appeared to signal that some form of U.S. aid would be forthcoming, Perino said: "Because I don't have an announcement for you."

She said she didn't want to appear to signal that help was on its way "if at the end of the day, we don't do something."

Mr. Bush himself refused to answer shouted questions about the timing of any auto deal during an unrelated event in the Oval Office earlier Tuesday morning.

Perino said the prime goal remained to "prevent a disorderly bankruptcy."

Sen. Carl Levin, D-Mich., has said he expects GM to get $8 billion and Chrysler $7 billion from the Bush administration. He said the Treasury secretary likely would be tapped as a "car czar" to oversee restructuring of the companies.

Vice President Dick Cheney, in an interview with conservative talk show host Rush Limbaugh, cautioned that "if the automobile industry goes belly up now, there's a deep concern that that would be a major shock to the system."

The administration is weighing several options. They include using money from the $700 billion financial bailout fund to provide loans to the carmakers or using money from the fund as collateral for emergency loans the automakers could get from the Federal Reserve.

House Speaker Nancy Pelosi, D-Calif., said the bailout funds were "the only recourse that they have" because of the failure to pass legislation in Congress. She said "something will have to happen imminently" but said requirements for restructuring should be attached to the funds.

"Otherwise, we're just giving life support, rather than a lifeline for viability into the future," Pelosi said.

The White House is keeping President-elect Barack Obama and his advisers informed of the discussions. If administration officials choose not to provide the money now, the Obama team could wait for the new Congress, which will have stronger Democratic majorities. But the delay could risk bankruptcy filings by GM and Chrysler.

[fredsauto]

I wish the news networks would tell it like it is!
GM and Chrysler need a loan!
Ford is doing well but would like a cushion set aside
in case of future problems!
IT IS NOT- BIG 3 BAILOUT!! THAT IS A FALSE STATEMENT!!

[jsd330]

aggiekat2004 so you have a masters in business and a couple of other degrees. So whats the problem finding a job. If you don''t know I''ll tell you, the job market is tight right now and the market is flooded with people with business degree,s. Your career choice wasn''t very bright. I went through a 4 year apprenticeship and make a heck of a lot more then most college grads, and in 35 years I have never been laid off. That was my career choice you made yours. So don''t cry about what somebody gets paid or what their benifits are.
You said you got severence pay isn''t that about the same as the auto workers getting 95%? sub pay + state unemployment = 95%.

[aggiekat2004]

I have an excellent work ethic...that''s why I have NO RESPECT FOR THE UAW AND AN ENTITLEMENT ATTITUDE HELD BY PEOPLE ASSOCIATED WITH THE UAW.

[aggiekat2004]

Nissan was actually founded in 1934.

[stjohn51]

F-OFF. I''''ve been out working for over 20 years now, and have done well.

Sounds like you''''ve NEVER been a student. Oh, or is your third grade diploma in a frame over your fireplace??


Posted by aggiekat2004 at 01:35 PM : Dec 17, 2008

Big education whoopee you''re still a punk with a lousy work ethic

As I said you''re a mess in progress


Good day

[aggiekat2004]

And Datsun/Nissan came into being in 1926.

[stjohn51]

Posted by aggiekat2004 at 01:34 PM : Dec 17, 2008

My final conclusion you''re a mess in progress

Now get off your butt and look for work and get rid of that snide attitude, this world owes you nothing; you now have an excellent education but you might have to settle for a job that doesn''t meet your skills at the moment.


Good luck

Have to go for now

[aggiekat2004]

Oh, and BTW...Toyota created its first passenger car in 1937.

So the argument about the US automakers being older? Not by much.

[aggiekat2004]

Big difference between the class rooms and real world real time communication skills

Maybe you''''re a good student that can''''t take it to the next level

Posted by stjohn51 at 01:28 PM : Dec 17, 2008
-----------
F-OFF. I''ve been out working for over 20 years now, and have done well.

Sounds like you''ve NEVER been a student. Oh, or is your third grade diploma in a frame over your fireplace??

[stjohn51]

or collect exorbitant retirement and benefits that I don''''t even have.



Posted by aggiekat2004 at 01:12 PM : Dec 17, 2008


You''ll have to work longer than five years and reach retirement age oh say around 65 before that argument will fly

[aggiekat2004]

The age of the companies also plays an enormous role. General Motors, for example, has four times as many retirees as it does workers, placing a disproportionate burden on the company to meet its health and pension promises. %u201CIt%u2019s much easier for the transplants because they%u2019re much younger companies,%u201D said Gary N. Chaison, a labor professor at Clark University in Worcester, Mass.
---------------

Like a ponzi scheme, Amway, or even Social Security.

This was never a viable business model. They should''ve never promised extensive benefits to retirees.

Social Security operates on the same failed philosophy...relying on current workers to support the older employees.

And of COURSE Gettelfinger is going to say that. His stupid UAW is not getting their "fair share," and these horrible foreign companies are threatening the big three''s business...but not because the government is giving them a handout. Take a closer look at the last paragraph...it''s because these companies fought the mileage requirements and produced big, ugly, unreliable pieces o'' cr_ap.

[stjohn51]

Funny, my specialty is "Customer Service." Your assessment is totally incorrect.

If I had been bragging, then I would''''ve told you that my first degree is in COMMUNICATION, and that I graduated with honors in Construction Management before completing my master''''s in Business.


Posted by aggiekat2004 at 01:15 PM : Dec 17, 2008


Big difference between the class rooms and real world real time communication skills

Maybe you''re a good student that can''t take it to the next level

[stjohn51]

I stand by my assessment that you''''re a grumpy old man with nothing better to do than try and put others down.




Posted by aggiekat2004 at 01:15 PM : Dec 17, 2008

Look in the mirror pal you''re the one bashing UAW workers

[stjohn51]

They [foreign governments] use taxpayer dollars to subsidize our competition,%u201D Ron Gettelfinger, president of the United Auto Workers, said Friday after the Senate killed the Detroit bailout proposal. %u201CIt doesn%u2019t help our industry.%u201D

The age of the companies also plays an enormous role. General Motors, for example, has four times as many retirees as it does workers, placing a disproportionate burden on the company to meet its health and pension promises. %u201CIt%u2019s much easier for the transplants because they%u2019re much younger companies,%u201D said Gary N. Chaison, a labor professor at Clark University in Worcester, Mass.

Not that the automakers don%u2019t bear much of the blame for their current troubles. For years, the Big Three fought higher mileage standards while focusing production on gas-guzzling trucks and sport utility vehicles %u2014 models that fell from public favor when gas prices leapt over the summer.



http://washingtonindependent.com/22236/cars

[aggiekat2004]

That arguments not taking wings

You''''re not working you said you''''re unemployed what tax dollars is the GOVT using of yours to fund the GM job bank

BTW, you need to do some research and I don''''t mean listening to RUSH LIMBAUGH

Posted by stjohn51 at 01:15 PM : Dec 17, 2008
-------------

Why the he_ll do you think I listen to Rush? I DON''T. I voted for Obama, after switching from the RepubliCON party because they were a bunch of liars.

Federal taxes ARE taken out of unemployment benefits. I''m still paying taxes. I also pay taxes through sales tax and other taxes levied by my state.

[aggiekat2004]

You''''re the one out of work

Probably something to do with your communication skills

Keep bragging about that education you earned, while you sit on your butt questioning others education

Posted by stjohn51 at 01:08 PM : Dec 17, 2008
-----------------
Funny, my specialty is "Customer Service." Your assessment is totally incorrect.

If I had been bragging, then I would''ve told you that my first degree is in COMMUNICATION, and that I graduated with honors in Construction Management before completing my master''s in Business.

I stand by my assessment that you''re a grumpy old man with nothing better to do than try and put others down.

[stjohn51]

It''''s simply not fair that my tax dollars are going to pay for GM and Chrysler to give that money to others to sit on their butt in the Jobs Bank...

Posted by aggiekat2004 at 01:12 PM : Dec 17, 2008


That arguments not taking wings

You''re not working you said you''re unemployed what tax dollars is the GOVT using of yours to fund the GM job bank

BTW, you need to do some research and I don''t mean listening to RUSH LIMBAUGH

[aggiekat2004]

If you spent more time looking for work instead of studing the UAW and Toyota operations you''''d found a job by now

Hard work is noble and most UAW empolyee''''s especially the retired folks paid there dues in life

You couldn''''t hack it if you had to work for thirty years doing a job like that it''''s tough

Posted by stjohn51 at 01:05 PM : Dec 17, 2008
--------------

I studied them IN SCHOOL. My most recent job was in the commercial construction industry. Too bad the whole industry is suffering right now.

I admire hard work, and I have worked hard. I HAVE worked for two companies more than five years.

But I''m also not asking for a bailout. And the US automakers need to streamline and become competitive, which they simply can''t do with the ball and chain of the UAW. The only way they can survive is through investment of MY TAX DOLLARS? It''s simply not fair that my tax dollars are going to pay for GM and Chrysler to give that money to others to sit on their butt in the Jobs Bank...or collect exorbitant retirement and benefits that I don''t even have.

I''m not jealous, but as a "new stockholder" in GM and Chrysler, I want my investment to be used wisely.

[stjohn51]

I can also tell by your writing and destruction of the English language that you''''re NOT educated. I''''m guessing that you''''re nearing retirement and just a grumpy old man.



Posted by aggiekat2004 at 01:03 PM : Dec 17, 2008

You''re the one out of work

Probably something to do with your communication skills

Keep bragging about that education you earned, while you sit on your butt questioning others education

[stjohn51]

You''''re an idiot, and not worth my time.




Posted by aggiekat2004 at 01:02 PM : Dec 17, 2008

What''s wrong you can call UAW workers lazy and other childish names but you can''t handle comments like

I don''t want to hear about how noble you think you''re