CEOs, Pelosi Talk About More Aid For Automakers

WASHINGTON (Reuters) - The White House left the door open on Thursday for potentially backing additional financial aid for U.S. automakers as industry executives prepared to lobby U.S. House Speaker Nancy Pelosi for new assistance.

The Bush administration said automakers could now apply for money under a $25 billion package of low-interest loans to help them meet fuel-efficiency requirements but would listen to other ideas as the Democratic-led Congress weighs further loans or other assistance.

The Bush administration has never favored a straight bailout and rebuffed General Motors Corp last week on a proposal for capital to help it facilitate a possible merger with Chrysler LLC, bought last year by Cerberus Capital Management LP.

Read the whole story here.

Comments

[econ1]

This is a horrible idea. $25B on top of $25B so $50B to these three jokers (and that is unlikely to be enough). If it comes equally from each state (which it doesn't) that is $1B from Californian's to prop up these disasters. Nancy should stop this bailout in its' tracks. Only three days... sigh.

[RRG64]

if these companies cannot make it on their own,they should be allowed to go under for not adapting to a changing marketplace.

it is not our governments responsibility to save them.

[Freetoast]

Listen, I just put down a grand on a 2010 Camaro, this line of cars is suppose to start production in Feb, 2009. If we don't bail them out, my new car may not be produced on time or possibly not at all! I have always supported progressive causes like gay marrige, early childhood education, and universal healthcare, ect... Now, I need your support! If we can print $700 billion for the banks, surely we can print some $ for GM. If not for me, then for the Children (of the workers). : (

[ferrarimanf355]

I feel you, man. I want a Camaro, but with GM's troubles, I bailed on my dream and am seriously considering a Nissan 370Z. I mean, Nissan won't go under, right?

http://www.autoblog.com/2008/10/29/officially-official-nissan-drops-370z-ahead-of-la-debut/

[AdamX]

These are the folks who have helped to destroy our economy - shipping our jobs out of the country. How about bailing ME out?

[harriettubman]

I'm totally against this. This is why people wanted McCain in office. Democrats love to spend taxpayer's money to easily. We don't need a top 3 automaker. Let these people surive or die like any other business. The smallest car still costs over $16,000.

What this country needs to do is concentrate on rail expansion and Amtrak like other countries.

[we-r-doomed]

another Lieberman

[Sundialsvc4]

It's morning.

The Leprechaun Gold that the power-brokers in Washington have been dumping onto the market ...

... is straw again.

Automakers are in the business of making cars. Maybe they'd sell a lot more of them if the cars didn't cost $38,000 apiece. Maybe they'd sell more of them if they bought component parts from suppliers in this country. "Ol' Henry" knew that workers at Ford had to make enough wages to afford Ford cars. He was no saint, but he paid them far more than he "needed to," and he insisted that his suppliers do the same. Smart Henry.

Let's start by seizing Ms. Pelosi, for the high-crime of obstruction of justice by declaring "impeachment is off the table." Let's turn on all the lights in the kitchen and start stomping the roaches.

Last time I checked, this was "We Can Do It!" America. Okay, so we got swindled. Didn't listen to ol' brother "Ike," and got taken. We don't have to bail them out. We don't have to continue to tolerate them. We don't have to keep being Plaintiffs.

[utd]

STOP GIVING MY DAMN MONEY TO THESE AUTOMAKERS!!!

They have known for 30 years at least they needed to explore other options, but they didn't. The longer we keep dragging their dead corpses along with federal money, the longer it will take for new auto makers to emerge. This is against everything our country stands for. Stop falsely propping up these old companies and instead how about you help start up some new companies.

[harriettubman]

I agree. Obama needs to put an end to this spending spree.

[Viper]

We need to go back to Making stuff. Ford and GM are critical to that and the suppliers they buy from.

Have they been less than perfect.. Yes. Have the people that voted for reaganomics and Bush been at fault also .. yes. (even in a bigger way)

Have people who bought their LARGE products and walked away from smaller cars been at fault ... yes. Having our MFG compete with countires that have 10 times higher tarrif rates on our goods been unfair to them, yes. Did allowing Japan to sell its cars here at LT half the price they sell their cars for in Japan, was that fair? NO... they sold at a loss or no profit here to gain market share from a protected high profit market there...

Having our car MFGs pay for ever rising healthcare while every other nation we compete with has a single payer system costing 1/3 been fair or their fault.. no.

The reality is thesee companies have lots of debt instruments out in the market place that our held by Insuirance companies, banks and pension funds.. let then fail and you just expand the credit problem. They fail and the cost will be several trillion plus 2-3 million in jobs.. more food stamps, more forclosures, more unemployment!

After all their sudden misfortune is due to a sudden period of soaring gas prices caused by Speculation, created by the BUSH admin and not a real oil shortage (yet).

I
Regards

[Freetoast]

Well put.

[huffnpuffn]

...But act now! The Great Government Giveaway is for a limited time only!

How's this work exactly? Do I just need to bring my wheelbarrow to the nearest Federal Reserve branch? I don't own a car company, but I'm financially stupid too. Aren't the Democrats the party of the people, the little guy?

[RRG64]

wheelbarrow? how about a 18 wheeler or a cargo ship!

[funkalicious]

NO one said you were going to like the change....We will all become poorer and with interest rates at zero there will be no way to save. if these Democratic leaders keep giving allof our money away and printing it like toilet paper.

Pelosi should say No Fing way to GM

America is broke and completely uncompetitive and at a stand still at five doillar a gallon gasoline.. Thats the ugly fact. the pink elephant in the room.

Europe has 40mpg autos we need at least that here or better a public transit system before we give one penny to the Auto companies.
Cafe or no Way.

[mydogshakespeare]

WTF? MORE redistributionism to the wealthy? And just so poor and needy workers can continue making cars that nobody wants? Sounds like the worst of central planning and corporate communism.

Cut them off the Government Teat! They will perish or survive on their own merits... isn't that what Market Capitalism is all about?

[Viper]

Nobody wants... they sold milions of cars before a false oil shoratge and high prices due to speculation. People wanted their cars in a big way. So much so that Toyota and Nissan introduced large pickups and SUVs. GM's fleet MPG average is lower than Toyota. I have both Toyota and GM... both are great products.


Do we need smaller more efficient cars.. yes... the oil shortage will come... but a trippling of prices over 36 months was bogus caused by deregulation and that rest at the Feet of the Repugs and laisez - faire trickle down economics..


If you think GM and Ford will not effect you job and future..tell me what you do and lets see?


Regards.

[vandegrasse]

Oh, give me an f...in' break! I need help. I'm trying to afford the asthma medicine that my kid needs to survive which no doubt was caused by the crappy gas guzzlers Detroit puts out. Get some perspective Pelosi. Democrats weren't put into power to carry out Bush's corporate welfare programs. Sheez!

[PT6]

Auto makers are cutting the one area they need to enhance! GREEN CARS!

So either they either beef up and speed up the Green CAR Revolution or they go bankrupt!

It is cold hearted but throwing Good money at OUTDATED COMPANIES is useless!

Paying their short term bills is not GOOD Government!

Toyota makes Green CARS and so can Ford, GM, and even Chrysler!

[debshoemo]

I agree and I wish they would. I was so excited to hear about the GM Volt and Chrysler was releasing an electric car. But unfortunately, these companies CEO's are in with the oil companies and that has been their resistance to Green cars. But the factory workers should not be punished for poor management. I hope Congress can do something to keep these companies going but they HAVE to tie to better management, R&D and Green cars.

[Viper]

Tell me what you do and we will see if the failing of those companies caused by oil speculation... they were doing OK until the oiil prices trippled caused by speculation, not an oil shortage yet....

Note that Mazada almost went under as did Nissan even before the phoney oil shortage ( not here yet) caused by the Enron Loophole.

How could is that great toyota if you had to pay twice as much for it as is the case in Japan?

Why do our MFG have to pay for employee healthcare, when their competitors have government single payer healtcare at 1/3 the cost.

Regards

[KarlaElisa]

That picture of Pelosi reminds me of how much I dislike seeing her mug anywhere.

I wonder what her take on Obama is....he is younger & smarter than most of Congress, And he didn't have to hang around forever to make POTUS. Certainly there must be some envy.