Auto Bailout, yea or nea?

[Wagner]

Since we've already allotted 700B to socialist bailouts, I'm not quite sure how 25B of that pot is a bad idea to save and industry, this if destroyed, would basically bankrupt the state of Michigan as well as a couple thousand supply chain companies. IMO not passing a 25B loan to GM and Ford would be a bad idea. Of course, there should be rules/regs in place...and IMO Chrysler deserves none of it (privately owned = your own damn problem).

Again, this goes 100% against my Libertarian beliefs but apparently the country is all for handouts, so roll with it.

We'll see I guess.

Give it up to Ford who, of the big 3, is most solvent as a company!!

[AzX5]

I give it a big nea. All it will do is postpone the day of reckoning another 6 months or so. If they fail, the jobs will move to Honda, Toyota, BMW, Nissan, etc., which all have huge plants in the U.S., but without the union dead weight.

[Wagner]

Originally Posted by AzX5

I give it a big nea. All it will do is postpone the day of reckoning another 6 months or so. If they fail, the jobs will move to Honda, Toyota, BMW, Nissan, etc., which all have huge plants in the U.S., but without the union dead weight.

That was a direct quote from a CNN article
http://money.cnn.com/2008/11/17/news...ion=2008111707

I'd initially agree but I don't think Michigan having double-digit unemployment is a good thing.

[AzX5]

Originally Posted by Wagner

That was a direct quote from a CNN article
http://money.cnn.com/2008/11/17/news...ion=2008111707

I don't see the quote in that article, but I heard John Kyl say something similar on Fox News this weekend.

[mwares212]

I am against this loan to the auto companies. I believe this would just continue to leave the door open to any company who does poorly. What incentive would there be to make wise decisions if the government is always there to bail you out. I believe bankruptcy protection would give GM a chance to reorganize, close some superfluous dealers and/or brands, and rid themselves of excess employees. This I believe would be the best long-term solution to their problems.

On the political side of the issue, I recall hearing on MSNBC that it would be political suicide for whichever president chooses to give a bailout. The American public appears to be fed up. So far, it appears Bush is waiting for Obama to act.

[AzNMpower32]

Nay. Figure out a way to manage those legacy costs, or die.

[mrkbbd]

I'm a big nea, there needs to be a massive restructuring of the American Automaker's system and the only way to do that is to allow them to fail. If you provide benefits for doing poorly, there is no motivation to improve. A bailout fosters less than favorable behavior, something that has got to change. They first need to deal with the Unions and supplier issues and stop making significantly more cars than the economy or demand will support. I understand they do this because they are minimizing losses but come on, when you have to do "Employee Pricing" regularly you devalue the brand name and the image associated with it making it even harder to sell in the future because you get consumers used to buying on sale

[The Cleaner]

We have to let them fail, it's the only way they can rebuild the companies better and stronger. Bailouts for any industry reward failure and poor management. US automakers need to make cars people want, the pure garbage then build now has no place to go, you can't shine up the latest line of GM products and make them appealing.

When the inflation hits from all the "bailing" we are doing the shock will be breathtaking for even the financially strong among us. This is the real concern we should look at.

[Wagner]

All this is true. However, a precedence has already been set with the Wallstreet buyout.

[4.6is Ryder]

I'm definitely in the hell no group. Why should we provide bonus money to the big 3 CEO's. There needs to be some re-tooling in these companies. The best way would be for them to enter chpt 11 and start over. The CEO's and the board of Directors should be axed. As someone stated above, these companies need to make a much better product. The day of the steroid SUV is gone. Flexfuel is a joke and GM has 10 to 15 versions of the same vehicle. Once again I say no way. Let them reorganize, get some good quality R&D and then work themselves back in the game..........Phil