DISQUS

Dave of the Jungle · 1 year ago

Unfortunately, it won't solve the fundamentals of the problem.

Greensburg · 1 year ago

"....let them fail as punishment for bad business decisions...." did the idiot say the same thing about the financial sector? or does this only apply to the "dirty finger nail" working people?

brb915 · 1 year ago

we've done our damnedest not to let our men and women in uniform fail, even though the wads at the top of the Pentagon FAILED MISERABLY

SCLiberal · 1 year ago

GM still has enough money to build a factory in China.

JohnInTexas · 1 year ago

Good, let China bail them out.

RIPWAMU · 1 year ago

Each division/country is different.

JohnInTexas · 1 year ago

and the sweeping restructuring and reforming...massive lay offs and pay cuts, just watch...same thing that would have happened if they didn't get the money.

KerrynowCampau · 1 year ago

Yep. And even after all of that, will people be able to get loans for new cars? Reform or not if the credit is not available it won't do them any good.

RIPWAMU · 1 year ago

Yes, this needs to be a requirement for the next $350 billion and changes should be made to those who received the first. If they don't free up credit to all sectors then loan is due and payable immediately.

Asterix · 1 year ago

Of the BIg Three, Ford appears to be the only one on the ball:

http://www.automotivedesignline.com/212300230

But even Toyota is talking about layoffs and factory closings. Americans tend to borrow to buy cars, rather than pay cash for them and no one wants to lend money.

EmGD · 1 year ago

Or you can look at it this way: the situation is so dire and catastrophic that even George Bush has been rustled from his nap and shaken into action. He's even pretending like he wants to still be President. That's how bad things are: even Bush realizes it.

http://thesebastards.blogspot.com/

wearing out my F key · 1 year ago

wait a minute. when the senate killed the auto bailout last week, this blog took the stance that it was a huge mistake that would cost millions of jobs and drive the country into the ground... but now bush gets some cash together for those worthless beggers, and that's a problem too?

could you please just tell me one thing to think, then stick with it? i've got to make up new flashcards every time there's a change in talking points.

RIPWAMU · 1 year ago

Worthless beggers? You have made some rude comments before, but this one takes the cake. Millions of employees are just trying to take care of their families (most of them are not UAW employees). Most people are relieved with the money, but there are some almost unobtainable and politically driven requirements.

Older_Wiser · 1 year ago

Not a whole lot of detail there, either. But I sensed an ominous signal that the union will be totally screwed.

Can you trust anything this idiot says anyway?

Indigo · 1 year ago

Oh yes he did! It's probably a responsible decision.

kh7463 · 1 year ago

I guess the auto industry one is hitting me closer to home since I know so many people who are grunts in the business, both on the line and in the dealerships - their livelihoods are at stake. I only know people who work in locally owned banks and credit unions and they seem to be ok, no one laid off from those yet.

RIPWAMU · 1 year ago

Me too. I have a couple family members in the industry (one a contractor in IT for Ford and the other works for a supplier). However, it is the rest of my large family in Michigan who I worry about as well. They have no part in the industry but are feeling the effects of it. My aunt works for the state and she is 3 years from retirement (been there 30 years). She lost 60% of her 401k and recently went through the state shutdown. She has worked 2-3 jobs all her life and now she may have to work even longer due to the financial meltdown - not the carmakers.

RIPWAMU · 1 year ago

Not to mention that one of the area hospitals in Detroit recently laid off like 300 workers.

Naja pallida · 1 year ago

Really, when you think about it, this country has an extensive history of automaker failure, and almost every time, it was because they were making the cars they wanted people to buy, instead of making the cars that people actually wanted to buy. Missing out on opportunities for technological advancement. The lack of credit available to consumers is only one part of their problem. As much as I wish Bush would just go away, I'm glad he's doing -something- where Congress is impotent.

Just as a couple for-instances: back in 1924, Imperial Motors, despite being one of the original investors in Indianapolis, failed to keep with the times and had to stop making cars. Auburn Automobile had to close its doors (also killing its subsidiaries Cord and Duesenberg) when it failed to realize that cars needed to be more affordable during the depression era. Studebaker failed to see numerous market innovations, including the pick-up truck. Their inability to keep with the times led to their merger with Packard, and Studebaker's mismanagement almost bankrupted both companies. They ended up having to be managed by an outside company, and get numerous tax credits to stay afloat for as long as they did, but still had to cease car production in the mid 60s. Hudson, despite having great racing success and several automotive records under it's belt, was forced to merge with Nash in the 50s, forming American Motors. They cited inability to compete with Ford/GM/Chrysler as the reasoning, and at the time it was one of the largest corporate mergers ever. Loan extensions from their bankers couldn't make up for the mismanagement, which included a massive recall. A big reason they didn't close doors much earlier was because of the successful Jeep line... which obviously was what Chrysler wanted when they bought them out. Chrysler itself almost filed for bankruptcy in 1979. They got government loan guarantees which kept them afloat long enough to restructure and restyle. Today they won't even take a page from their own book, back then, coming from the brink required a complete company change. They brought in a new CEO and revamped their entire car line up to be cheaper and more efficient to make. Some lucrative military contracts helped prop them up further. What we're seeing now is just another link in a century long chain of automaker mismanagement. Of course, I'm simplifying each situation, there was a lot more involved, but it all comes down to making cars that people actually want to buy. Nobody wants to spend twenty thousand dollars (or go into debt for that much) on something they're not going to be happy with, and enjoy driving.

RIPWAMU · 1 year ago

Although I do agree with some of your post, I don't agree with what you said about them making what they want people to buy. It was in the news today that the top 2 cars sold were actually trucks, the F150 and the Silverado. They have been making the cars Americans have demanded for years. Consumer greed made them increase production for customer immediate gratification and moved onto the bigger the better. It takes a few years to develop new models and they have to forecast consumer desires and trends years out. They used to make a lot of small cars and no one wanted to buy them, they wanted SUVS and crossovers.

Naja pallida · 1 year ago

I suppose, you are right. Consumers do drive the market, and we're a fickle lot, but the Toyota Camry and Corolla, as well as the Honda Accord, are on that top seller's list too. While the GM line of mini-vans get ranked as least reliable, and the GM Delta platform among the least safe, Chevy Malibu among the worst re-sale value. (I don't mean to be picking on GM in particular, it's just what has caught my attention in reading recently.) A lot of little things add up to consumers being discouraged, and looking for better solutions for their dollar. I myself have been in the market for a new car for a couple of years now, and just haven't found anything that has satisfied my senses of value, enjoyment and aesthetics all at once... but maybe I'm just picky.

RIPWAMU · 1 year ago

And those companies are in trouble too and being "bailed" out by their governments without all this crap. The new Chevy Mailbu was best car of the year and I believe it's resale value is higher now. Many good cars have bad resale value. I love my foreign SUV, but it lost $3000 value in the last six weeks. These are the signs of the times, not the signs of the carmakers. This economy is causing these problems. There has been lots of upfront news about the bad lately, but not so much about the good. The repugs hate unions and are doing their best to obliterate them at the expense of the car makers and the general public. I don't see anyone picking apart the salaries, productivity, or viability of AIG and those other thugs who want nothing more than fee us to death.

TPierce · 1 year ago

That prim little speech of his makes me grind my teeth, as did his petty announcement yesterday: "I'm still thinking about it." He was playing games with and reading lectures to three million people who are waiting through a cold winter to see if they can afford their heating bills, homes, and cars. His own party is content to shaft them while giving a leg up to foreign automakers, and the only change in business practice any of these elected greedheads are interested in is not in clipping the golden parachutes and bonuses of the executives, but of union busting--again, attacking the blue collar slobs.

Add to that the fact that no one is exacting any accountability whatsoever from the banks, and it becomes blindingly clear that this country is not responding to the bulk of its citizens. It's responding to the big money people. Against all mercy for people who are trying to hang on, those who govern are showing their contempt more blatantly than ever. Is Obama going to change this? I hope so. If not, it's going to be more than the union auto workers who end up in the gunsight.

RIPWAMU · 1 year ago

I find it interesting that he announced it today, the last day of work for the assembly lines and many suppliers.

I couldn't agree with you more. A lot of grandstanding just to stick it to the UAW. I see they are asking for the remaining $350 billion to be released. If they do then I fully expect to see any company asking for funds to go through the same hearings and salary slashing.

TPierce · 1 year ago

I definitely want to see the financial outfits have to put up with the same hurdles. What's fair for the automakers should be fair for the money manipulators, right? Right.

RIPWAMU · 1 year ago

Whew. My family can breathe a bit easier I hope. All depends on how these production shut downs work. It is interesting though - when I was growing up my Dad was a car salesmen in Detroit area. The dealers didn't have a ton of inventory and often customers had to "order" a car that could take up to six weeks. As Americans became more demanding and wanted immediate gratification, the production lines increased and automakers were anticipated demand. I wonder if that was the beginning of the downfall.