Democrats Ready Emergency Legislation To Aid Auto Industry

Democratic Congressional leaders said Tuesday that they were ready to push emergency legislation to aid the imperiled auto industry when lawmakers return to Washington next week for the first time after the election, setting the stage for one last showdown with President Bush.

"Next week, during the lame-duck session of Congress, we are determined to pass legislation that will save the jobs of millions of workers whose livelihoods are on the line," the majority leader, Harry Reid of Nevada, said in a statement.

Read the whole story here.

Comments

[PT6]

As was intended in the Financial Bailout - NO added Money or Extras for Executives!

Executives should take at least a 30% cut in pay and unions take 10% cut! If refuse then change management and Union Executives!

Achieve complete conversion to GREEN/Hybrids in ONE YEAR or NO Funding!

Companies must take losses and liquidate "GAS GUZZLERS" to get rid of the excess inventory!

Produce ONLY HIGH Mileage Cars from now until Green Cars come on-line!

Provide incentives to buyers for buying high mileage Big 3 cars! Also, low interest loans!

NO SUVs OR BIG TRUCKS unless they are Hybrid and get at least 25 miles per gallon!

Insist on average of 30 miles per gallon for all companies over next year or NO FUNDING!

[Bjarni]

Government doesn't have any money; they don't produce anything of value, all their money comes from us. They only have 3 ways of giving money away, all of which you pay for.
1) Tax you directly through any one of the taxes they created for you to pay http://en.wikipedia.org/wiki/Taxation_in_the_United_States#List_of_taxes
2) Steal the worth of your money by creating government bonds to increase the money supply which result in higher prices for everything. (Inflation)
3) Borrow from abroad. Debt we need to pay back. Currently 8.5% of our federal budget pays the INTEREST only of that debt or $260B per year.
If an industry doesn't perform they deserve to go under and let new companies come in and fill the void. These companies have been in trouble for a long time and there is no reason to believe that they will perform better with this new money. When they know they can get free money without having to produce items removes any incentive for them to do well on their own. We see this happening already with the mortgage business. When people find out they can take out of the collective pie which is the national piggy bank we all pay into they will. We already have websites and news articles recommending people become irresponsible so they may get renegotiated terms at their fellow citizens expense.
http://market-ticker.denninger.net/archives/636-Stop-Paying-Your-Mortgage-Today.html

[polaris12]

The free market cheer leaders, among which are the auto execs, have always gushed about how the market solves all problems - so let the market work. These guys have been making the wrong decisions for years so let the market take care of them, rather than the taxpayers. Rewarding them with a bailout will ensure that nothing changes - they will go on making Hummers, and other gas guzzlers that consumers don't want. Unfortunately, it's not the auto execs that get hurt - it's us.

[ConcernedAboutRFuture]

I don't think we should bail out the automakers. They have been on a downward spiral for years. Instead of building more efficient innovative cars.... they keep repeating the "american is tough" or something similar in all of their advertising. Let's face it, American cars stink.... everyone I ever knew that owned one was always sorry the bought the "buy american" line. Toby Keith does.

They have had DECADES to build a fuel eficient car, especially after the 70's gas crisis.

But of course, I think Nancy just wants to write another check so that big shot execs can get their giant bonuses.... because I don't believe the american auto industry can be saved.

[TheIndependenceParty]

We have very few heavy industries anymore. Even Boeing was bypassed for the Airbus on the USAF refueling tanker. Caterpillar, ... What else?

Yes we need to exact commitments from the Big Three and any subsidiaries that receive assistance.

That said, in WWII these were some of the companies that built our tanks and vehicles needed for our defense. Are we certain we want them belly-up? What do we have in the US after they are gone but a bunch of poorly run, over-bloated financial concerns.

In the end it looks like the bankers and the wealthy will save, ... bankers and the wealthy. Blue Collar workers get stiffed, and manufacturing continues to slide overseas.

I hate the bailout, too, but I believe we need to look to saving jobs in industry and not just Wall Street. AIG and GS are both getting fat again at the trough while industry layoffs explode.

[Progress08]

Military (tanks, Bradleys, Ships, etc...)
Steel industry (which has shrunk)
small businesses that have an industrial component.

That's about it, I think?

We need a major green manufacturing revolution.

[englishprof]

So, the tax-and-spend anti-socialist neocons want all of us taxpayers to support two more of their mediocre products: GM and Ford. This is in addition to AIG and the idiotic Iraq war/invasion/occupation, or whatever you want to call our military abortion. The employees of those companies should be retrained to work on the our country's infrastructure. The last thing we need is more lousy, unwanted products messing up our environment -- products produced under the mediocre guidance of unimaginative and stupid executives. And all the exectuves should be fired.

[philosopherkingtomas]

If Detroit needs more taxpayer bailouts to survive, we ought to demand some serious and real concessions in return, starting with an immediate cease-and-desist order for Detroit to drop its lawsuits against California, Vermont, Rhode Island, New Mexico and any other state that passes clean cars legislation requiring more efficient, less polluting vehicles. Enough already, Detroit. Stop fighting and start building clean cars now.

Congress should also open the process beyond the Big 3, offering financial support for large-scale production of all-electric and plug-in hybrid.
Congress must hold the automakers accountable in any bailout to ensure that our clean car 'future' starts now.

[TheIndependenceParty]

Excellent suggestions. The design of autos will drive the energy companies to revise their appetite for oil, rather than the reverse.

[smartdoc]

Well said. They shouldn't just get a hand out. they need to be forced to seriously change their ways.

[TN]

If the money isn't strictly defined in it's use, to re-tool the capital assets to build greener cars, then just forget about it. You can't just give them money without strict stipulations.

Do not compromise with Bush. If he turns it down, let the whole country know that it is his fault and the republicans. They will never win Michigan again.

[truthyguy]

Agree. Well said. I suggest that at least part of the bailout come in the form of credits to purchasers of new cars produced by GM Ford and Chyrsler. That way the car company actually sells products, has to hire employees to produce more products and there is no delay in the cash flow stream.

[proudem]

absolutely. Good post.

[mjb5406]

Yep... the auto industry is mismanaged, and they screwed up. Sounds JUST like Wall Street and the banking industry, doesn't it? So, if Paulson and his minions can give trillions in handouts to the banks and Wall Street firms so they can use it for executive bonuses, why not help the automakers? At least what they do create a product that people can buy and use, not like the banks who are using their bailout money to buy other banks.

If the argument can be made that letting Goldman Sachs fail would cripple our economy, so can one argue that if Ford, GM and Chrysler bit the dust that we'd be in deep doo-doo too. And, yes, they sent jobs to Mexico and other countries, but so did companies like Whirlpool who bought Maytag, shipped all the jobs to Mexico and literally devastated towns like Newton, Iowa where all the Maytag washers and dryers were built. Nobody screamed then.

[javaz]

Perhaps if the auto industry did not outsource American jobs to Mexico, India, and Brazil, which started back in the 70's, more American workers would still have good paying jobs and the ability to buy American cars.

Henry Ford, for all his faults and there were many, understood at least that hiring people and paying them a good wage gave the workers the ability to buy Ford.

Offer tax incentives for the Big-3 and all corporations to bring jobs back home and put Americans back to work.
Wasn't this one of Obama's campaign promises?

[edwcorey]

American cars suck. The manufacturers' sales strategy sucks. Their pension investment strategy sucks. GM couldn't even make a profit with its credit company. America is in the tank because glamor and mediocrity are highly rewarded.

[helonias]

Fire the incompetent management first

[beanchihuahua]

We could start with Harry Reid and Nancy Pelosi. I'm as liberal of a democrat there is, but after the lame duck congress, they do not deserve their positions.

[harriettubman]

Look, my company has a hiring freeze. The car companies screwed up. When sales slow down that's when you do something. Take away the bonuses. I'm so mad about this. No more bailouts.

If Americans could elect Obama surely we can stop this bailout.

[OgreDaddy]

The American auto industry had more than 30 years to get their act together after
fair warning from Japan's auto industry, but they continued to ignore quality control
and fuel economy.

Now they want the tax payers to save them from their own short sighted greed and ignorance.

The first step to saving the American auto industry is to force public auction of the top
mismanagement's assets.

We've already seen how these bail outs only cover the uber rich and the top producing lobbyists leaving nothing but table scraps for the people.

If we bail out the Big 3, then when will the bail outs stop?

The airline industry is next.

When will it stop?

[gmonet]

Dont do it! Let the house of cards fall.

[sandals]

I can tell you living here in Michigan, that if something isn't done it won't just be auto workers, this will
trickle down to other jobs, the small business owners, restaurants, etc. and than we will truly see what kind of an economic crisis we will be in.
Part of Obama's plan is to restructure the auto industry into the green economy, to create some jobs.
This can be done we will have to make sure just like when Chrysler got bailed out that the money is reinvested into the companies not the pockets at the top.

[bbbear]

I tend to agree. But the if the auto industry is bailed out... again....then all stock, including preferred, is bought at the going rate by We The People. $1.00 per share is better than 0. And this time it must also be at the expense of the top heavy, over paid executives. Break up GM and Ford into smaller, more manageable companies who's focus is on electric and/or hydrogen fuel cells, etc..Start building the excellent, fuel efficient autos Ford and GM make in Europe and Asia here in the USA. As the companies stabilize, before they're opened to private investment, give the workers the first shot at all stocks.