Hard Line On Auto Aid Puts Bailed-Out Firms On Notice

Washington Post:

NEW YORK, March 30 -- After ousting General Motors' chief executive, President Obama warned Monday that bankruptcy may be unavoidable for two American automotive giants.

The administration's display of authority sent U.S. stocks tumbling and raised questions about whether the government would take similar steps against top executives at U.S. banks that are also receiving government bailout funds.

Read the whole story: Washington Post

Comments

[meemu]

Just what the Asians were waiting for.........their car maker stocks are UP.

[PeanutFreeMom]

THIS is such BS.
Why is it inherently A-OK to open up contacts with blue-collar workers, but Goldman Sacks get 100 cents on the dollar? Seriously, what the hell?

Why is it ok to tell GM and Chrysler to violate their contracts and pay their workers LESS, but Sommers can go all over the talk shows and talk about how the US is a country of LAWS and they can't just violate a contract with the AIG bonuses?

It's a scam. And Obama is just a cog. Pathetic.

[watchTVgetSTUPID]

Obama's double standard
Obama has picked his victim ... and it is the American manufacturers.

He insists the car companies must be competitive against a stacked deck. Foreign countries artificially kept their currencies low in order to gain market share in the USA. Now during the perfect storm of tight credit and severe recession, Obama insists the car companies permanently shut down major parts of their manufacturing until they can make a profit under these conditions. Foreign manufacturers do not have legacy costs of a government that refuses to Nationalize Health care. GM pays for a million people's health care. After Obama guts American manufacturing, then his government will finally loosen up on credit... but the jobs will be gone forever. Gone to China Korea etc.

Obama, Thanks for being the working man's worst enemy ... the enemy who pretended to be his friend but then sided with the foreign manufacturers and the Wall Street Banker Crooks.

I was promised change I can believe in.
I was deceived
I voted for a LIAR

[BoSoxFanNC1]

Rule #1: Do not take $$$ from the government......go BK, it's cheaper and it will keep Obama and company out of your decisions.

No socialism....no way

[clearthinker2008]

If my mother loses her pension, I will never forgive Obama. She worked like a dog for GM for 30 years and earned every dime of her pension, being a single mom and raising three kids. She had a heart attack on her last day of work, they were set up to give her a little retirement party. I bend a lot for Obama, because I believed sincerely that he cared about folks, but I will never forgive him if/when she loses her pension. I might be more forgiving if their wasn't this blatant double standard concerning wall street.

[SailFree]

It would appear that the new owners of Government Motors are idiots! 11 of the 20 or so GM lines that are profitable are slated to be phased out under government­-acceptabl­e plans! These 11 are SUVs and trucks!

Should we trust environmental wacko lawyers to run a car company?

My plan: Declare bankruptcy TOMORROW, April Fool's Day. Renegotiate union contracts. Redesign the fine-handling but ugly Cadillacs. Continue the new focus on good service with a smile! Simplify the product line somewhat. Used to be that brand loyalty with Buick, Caddy, Olds, Chevy, et al, kept people buying all those brands even though they were mostly just different body styles and trims on the same undercarriages. Those days are gone.

[DLBSR]

You are driving in the right direction. To allow a manufacturing entity that has huge future upside potential is absolutely demonstrative of one's inability to remove one's head from one's a*ss. This economy will not be driven to prosperity by consumer spending and borrowing. These are two of the vehicles we drove to economic ruin, breaking all posted speed limits and ignoring all caution signs in the process. We must restore our maufacturing infrastructure to once again produce products with value so that we can begin to earn our way out of this crisis. The taxpayers can save the auto industry tomorrow if they wish to do so for pennies on the dollar when compared to the financial industry bailout funds and create an industry that works for all of us.
To see how go to; http://taxapyercommonsense.blogspot.com and click on the Common Sense Rescue Plan For The Auto Industry.

[amdezurik]

since those are the lines mostly (if not in some cases only) advertized it is hardly surprising they are profitable. They give a major tax break for urban users of what was supposed to be a working light truck, and they ensure our dependancy on oil. Add in that using them on city streets accelerates wear on those streets we pay for. More SUV's more potholes. Fact is they were a bad idea from the start and still are. Start selling the less "sexy" lines or revamp them to something they CAN sell, then maybe we can talk.

[clarryr]

You may consider it just semantics but President Obama didn't FIRE the GM CEO and he didn't FORCE Chrysler into merger with Fiat. These actions were conditions for further support by the government which is exactly the power that the President has to exercise over these companies. They had the right to refuse.

[SailFree]

True. And they should! Declare bankruptcy tomorrow. That's the good, old-fashioned, American way, not holding out the hand for government subsidy of failure.

[Patriot86]

This was before the Wall Street Banksters ( who are also bankrupt by the way and have not gone into bankruptcy but been richly rewarded first by Bush and now by Obama) destroyed the economy and any sort of debtor financing for those who attempted chapter 11...bankruptcy now is nothing more than liquidatio­n...millio­ns of auto and auto related jobs will be lost if the big three go under...make no mistake we are looking at the destruction of America...globalist policies have now destroyed all American industry including garments, steel, furniture making, electronics and finally the autos which gave this country a middle class...this country will be nothing without a middle class.

[watchTVgetSTUPID]

If I cut off your air supply and said quit or else, That is not a choice.

Bush owns the recession
Obama owns the Depression ... he is the one who attacked the auto industry.

How is that job creation program coming along as you destroy a million manufacturing jobs?
How is the begging for a trillion dollars from China coming along? Don/'t you wish tou did not move the manufacturing to China?

[clarryr]

The team evaluating GM's recovery plan said it wouldn't work. But we should give them the money anyway - right. Obama could have said outright no. Instead he gave both GM and Chrysler another chance.

Bush owns the destruction of the financial system that might lead to depression. Obama may be able to prevent it or lessen it. Time will tell.

Job creation is just getting started. Obama is trying to get the auto industry to restructure to the level they will survive. China does buy a lot of our debt. They bought the $5T in debt from Bush, they may buy more from Obama - can't really tell yet. I never wanted Reagan, Bush, Clinton, or Bush to export manufacturing jobs. I've always thought that was a mistake. My industry, computers, was one of the hardest hit by off-shoring. The Obama plan is attempting to create new green industries with associated manufacturing jobs that can't be exported. It will take years. Hopefully we can all survive that long. He could use all the help he can get.

[econ1]

This is just another down payment on what will be $50 - 100 billion to save two companies.

When Congresspeople start getting letters about their failed transmissions and window lifts....then we will get some real action.

[All in All]

One would thonk that Stocks would skyrocket on Pres.Obama's show of leadership on this topic, however instead.... the traders on Wallstreet behave more like Teenagers dealing with all the normal aspects of His or Hers first relationship... Stop the madness..... grow up.. the World is not coming to a end.... yes, that is solid ground beneath Your feet still.... things could be worst, but it's not.... so stop acting like there's no tomorrow, please!

[watchTVgetSTUPID]

You are out of touch with reality and the auto industry. It makes no sense to destroy a million jobs and hand over market share to foreign importers.

With leadership like Obama, we are in trouble
With Betrayal like Obama did to working people, we are in big trouble

[Lillopa]

Plus Pres Obama gives ideas, a plan, incentive ideas to save jobs and gives GM another 60 days more to work it out before having to go into bankruptcy. plus help if they go into bankruptcy--done in 30 days unions stay in tac etc..go Pres Obama ---bush republicans just handed the money over --Pres Obama to save jobs fighting for labour workers not CEOs --

[watchTVgetSTUPID]

Obama said he is the friend of the workers in the same speech he reversed himself and said get ready for bankruptcy. He announced no mercy... his Wall Street insider is being sent to destroy. Destruction of american jobs is Obama's plan and Wall street is his messenger of Death

[Lillopa]

The Pres gets what a wage of $400 hundred thousand dollars to run a "Nation" and the "World" serious issues. CEOs get $20 million to run "one" yes, "one" company--- and they fail and have neglect new ideas for the future --can get fired and still walk away with $20 million and retirement plan--whow ---now CEOs going to the Pres to do CEOs jobs now and get company out of their crises now also! Pres Obama fighting now only for "workers, labourers" not CEOS.
Pres obama will fight and promise to keep "labour unions" in tack if bankrupt and "full back up warranty coverage" and give us a deal if we bring our old cars in--"incentives" for all americans--no ideas from CEOS--but the Pres?
Bush, republcians had no ideas, no plans of their own--just handed our tax dollars in the billions over....and tell them to fix the problem---Pres obama fighting for American jobs, but CEOs like new commerical add of Dems out saying republicans are---hit and run--hmmmm? Go Pres Obama--if only all companies had a CEO like Pres obama running their companies--they would not be in this crises--you think?

[monicaangela]

Excellent comment !!

[econ1]

Don't worry about Obama's fiscal health. Government employees are very well taken care of....better than the private employees who pay for it. Clinton has made over $100m since leaving office, Gore has made perhaps half that. Rubin made $100m at Citibank in between stints in government "service". Raines made over $100m running Freddie into the grown (or was it Fannie).

Unfortunately this apparently isn't going to change as the government begins picking winners and losers, rather than letting customers do it.

[watchTVgetSTUPID]

Obama does not understand the auto industry and his actions are destroying it. He announces to prepare for Chrysler & GM's Bankruptcy. This drives away nearly all the car customers. Then he announces those customers who have been scared away from American Companies can buy a car made in Korea and get a $5000 government subsidy. Obama is taking tax money from GM workers and using it to encourage GM customers to switch to foreign imported cars.


How can American car manufacturers be competitive when Obama is working to destroy them?

[ebanks84]

I've played with the immature repubs for a while and it's time to go again. See ya when I see ya :).

[breakingnews]

The Closed Head Injury Society has shown enmasse. Without a secure helmet in sight.....

[monicaangela]

Have a great day !!!

[MatthewHopkins]

Newman,
I knew you would be dum b enough to cite war time seizure of means...

Thanks for playin..

The point stands, this is an unprecedented seizure of private industry and directed production to political NOT economic ends..

Now run along puppy..

[monicaangela]

Since when did buying a controling interest in a company constitute seizure. Don't you mean control, which is what is being demonstrated. 0 ;-)

[MatthewHopkins]

The government does not "buy" industry. It should have been processed through bankruptcy court.

Also to all of those talking about strings, the money was given without strings, then the strings appeared and those strings are still not clear for the banks or the autos..

[CostaDelBarto]

Seizure of private industry?

They lined up to take government money and wanted no strings attached. That was always going to be a fantasy.

[monicaangela]

G-Day Mate !!

[senorlou]

On his way out the door, Wagoner is trying to slice $20 million out of the heart of the company he helped devastate. This is during a time when tens of thousands are being laid off, having their benefits cut, etc. etc. $20 mil out of a company just reeling in debt. Nice.
We'll see how much these bankers will try to heist on their way out. You can bet heads will roll. These CEOs, Wagoner included, are perfect villains.

[monicaangela]

The reporting of these facts only add to the need for the public to insist that wage disparity be addressed by congress. 0 ;-)

[ssmack]

You are a Socialist... Is there anyone for whom a $20M annual income would be acceptable?

How about Oprah?... Sean Penn?... Al Gore? ...Bill Clinton?

[ssmack]

He's not "trying to slice" it out of the company. It's part of his compensation package. He worked for 30 years at this company - it's not like he was a "hired gun" like some of the execs. The only reason you don't like him is because he's a CEO.

The only execs you people seem to like are those that work for $1 a year (AIG). Even then, they take a beating from Frank-boy and the Dems. Why the class envy? Wagoner was loyal to his company. He didn't create this mess by himself. I don't see you clamoring to seize the benefits of the line workers that are now retired and made "junk" for years.

[DMEEPhD]

For years the automotive press(Car & Driver, Automobile, Road&Track, and others) have been calling Wagoner incompetent. The European press has not been kinder. Today, at the Opel plants in Germany, they are celebrating (http://www.spiegel.de/international/business/0,1518,616468,00.html).

Do not lament the departure of this guy...

[daxster1]

The Washington Times editorial about the Democrats failed attack and smear strategy on Rush is only one of many similar ones appearing in the New York Times, Washigton Post, Chicago Tribune, etc. Perhaps a more appropriate lead would be: "Truth 1, Obama 0"

[senorlou]

WTF does this article have to do with Rush. Try reading the article and staying on topic before you post. The Washington Times is owned by the Reverend Moon. Good god, you trolls/ moonies suck.

[clarryr]

To the contrary, the strategy to expose the hate, lies, and venom spewed by the likes Rush Limbaugh has been a huge success. More people are aware of and reject him now than ever before.