Obama Pushes for $50 Billion for Automakers, Oversight Czar

President-elect Barack Obama is pushing Congress this year to approve as much as $50 billion to save cash-starved U.S. automakers and appoint a czar or board to oversee the companies, a move that would require President George W. Bush's support, people familiar with the matter said.

Obama's economic advisers are now convinced that if General Motors Corp. doesn't get a financial lifeline soon, it will have to file for bankruptcy by the end of January. And if the companies don't get almost $50 billion, Obama will be dealing with the issue again by next summer.

Read the whole story here.

Comments

[redkim]

http://news.yahoo.com/s/ap/20081116/ap_on_go_co/auto_bailout

Well, here's at least one politician who is getting it right. I don't know where he stands on the Wall Street Bailout package, though. I hope he is against that as well.

[Massmiddleman]

We should not provide bailout money to the auto companies. It simply is to pay the pensions of the autoworkers union members and the fat paychecks of the executives. It is pretty simple.

If a business cannot succeed it should cease to exist. Pure natural selection.

[grizhead63]

But look where free market and natural selection got us on Wall Street. Rich, guiltless executives getting trillions in bailout funds and the USA getting the bill. I dont have any confidence in the so-called free market and natural selection system anymore. That system does not exist in reality.

[killpack]

The USA is on the hook because they got themselves involved by presenting and approving that obscene, ungodly bailout. Look, it's really simple. If you weren't a part of the subprime scam, you have NOTHING to worry about. It is economically, mathematically, statistically, physically IMPOSSIBLE to feel the negative effects of something you were NEVER involved with. If you in any way participated in the scam, and there were ten-thousand ways you could have done it, done blame somebody else for your current situation. Don't come crying for a bailout. And please, don't blame some vague concept like "capitalism" or "free-markets." Come on people.

[grizhead63]

If Senator Shelby (GOWP) Alabama thats a good reason to be for it. Do it for the Middle America autoworkers, not the pathetic,bloated management. Add some strings; require more stockholder and employee (white and blue collar) team participation in management decisions just as the successful Japanese companies do. We do not want this vital industry to fail like the rest. It will end up in China and never come back.

[grizhead63]

Griz correction, sorry! Make that: If Senator Shelby (GOWP) Alabama IS AGAINST IT that"s a good reason to be for it.

[Chavista]

Here is the answer the democrats should focus on:

The oil companies want to sell their product (gas)

The auto manufacturers use the oil companies product (gas)

The oil companies have been having record high profits.

The oil companies should buy the auto manufacturers or bail them out.

There is no reason for taxpayers to bail out the auto manufacturers.

[LeRoyHolt]

good logic

and a windfall profits tax is the easiest way.....

[slowhand0728]

50 Billion, at 2 million auto workers a number batted around a lot, that is 25K per worker...Why not use to send them to school, learn a new trade....SOMETHING other than this bloated Auto industry that is NEVER going to turn a profit. Let them go bankrupt.

[playera]

Sen. Richard Shelby, Alabama, just told Andrea Mitchell on MSNBC that money for the automotive industry would be "pouring money down a rathole."

I guess US auto workers are the rats in that hole and its the auto workers up North not in Alabama.

I also guess he doesn't want any money going to those auto workers and the companies up North since he has, what, 2 or 3 auto plants in Alabama that are owned by Japanese and German companies. Not only does it smell like he's protecting "Real Americans" but also protecting foreign companies who have undoubtedly given a ton of money to Sen. Shelby.

[killpack]

Ladies and Gents, don't let your elected officials GIVE your hard earned money to mismanaged, inefficient businesses. Write your Congressmen today!

[redkim]

Good idea, but at least one of my senators has something else on her mind these days. Maybe Chuck Schumer will actually take the truely conservative approach in this matter.

[FaceYourFears]

I am so against this bail out.....it's like a parent constantly bailing out a kid who makes bad decisions, at some point and time you've got to let them take responsiblity or they'll never learn.

[ohyes]

The only way the auto makers get tax payeres money is if they retool and make 21 century cars

and get new upper management with new ideas.

[ecksman]

ok first things first ... we have to stop using the word czar .... this is not russia nor is it the bush administration. no one is impressed w/ that title. please stop using it!

[FaceYourFears]

I agree

[Viper]

Its amazing how many repugs we have here suddenly that want to do exactly what the repugs have been doing for 30 years. Ship jobs offshore to get cheap products back as long as you can borrow to pay for them. The bank just went bust!

Just like repugs, you ignore that Japan dumped its cars here while selling the same car for twice as much in Japan in their protected market where all dealerships are owned by the Car makers. . That Europe because of that restricted Japan imports to protect their auto makers. Yes US car quality was poor. But that is just not true anymore. And part of Japans better quality per dollar was an illusion. Would you pay twice as much for a Celica as they do in Japan?

GM/Ford have the most hybrid models. They have the highest average fleet mileage. Some how you forget that Nissan and Mazada were close to going under a few years ago.

How has doing what Reagan started now played out?


Note CAT moved its high end MFG to where they provide healthcare. Its not just our auto iindustry... its all MFG... Where is our applaicne and electronic MFG?


Regards

[baghdadjoe]

Poorly designed gas-guzzling dinosaurs that look like something out of a Hulk cartoon?

This is what the US automakers have been insisting on for over 30 years. Americans don't want these ridiculous vehicles. No amount of "bailing out" is going to change that.

These companies have executed a fatally terrible business plan, and have INSISTED on it despite objections from so many Americans and our leaders. Now it is time for BANKRUPTCY.

No socialism for the automakers. It's time for the free market to decide. After all, that's what they always tell us.

[Viper]

Gee Toyota's profts are down 77%. They have run up huge debt. Nissan and Mazda just a couple of years ago were near failure. I guess people dont like their crappy gas guzzling products either. But what the heck , their development is paid for by the Japan Inc, as is their employee healthcare and they get zero percent loans...

You lost the electronic, computer, A/C, Heat and appliance industry, medicla equipment. much of the heavy equipment is not made here any more.. , half the auto industry... lets lose the rest.

Its been a succesful trip so far! LOL!


Regards

[rhondadavis28]

President Elect Barack Obama understands that we need to help out the Companies and Industries that actually MAKE STUFF!

We need JOBS JOBS JOBS and the auto industry can not FOLD.

We can not afford for them to lose or WE ALL LOSE

[meede]

Cars under Big 3 name in driveway -- Made in Mexico. Helps how

[ramal]

NOT ONE MORE CENT AT TAXPAYERS' EXPENSE!!! WE HAVE HAD ENOUGH!!!!!

[Viper]

So we will not be putting out more unemployment and Medicaid for 23 million workers and the 23 million more foreclosures? That will not take housing prices down even further and increase the cost of the financial bailout? The loss of half of whats left of our MFG base will not kill this country and make our trade deficits worse... You must of taught Bush economics.

Regards

[Hobobrown]

No bailouts for the Autos! Let them go Chapt. 11 and retro-fit the contracts. If the unions want to go on strike, fine. No work, no pay! See how long that lasts. Everyone needs to slap themselves in the face and realize it's a new world and they got to get with it. If we could lift some of the health care burden off the industry, it would free them up to invest in green technology and create the cars we need to get off the tit of big oil! We invented the auto industry, it's time for those jokers in the ivory towers to get of their asses and re-invent it!

[Viper]

The average Union pay is 14 bucks. To help out you will work for that?


Regards

[meede]

That's all the jobs are worth but when you add in benefits -- it's way over that. $14 for bolt installations for example -- They aren't being paid to think.