What should Congress do about the auto industry?

hmm losing 2 million jobs, so thats to say if the Big 3's were to fail, Americans would just stop buying cars!!! No, id say they would continue to buy American made cars, you know, Hondas, Toyotas, Kias.  Jobs will shift to those companys that make what the consumer wants,  safe, fuel efficient cars.

I say award thier incompentance with allowing them to fail.

Let them fail and file for chapter 11, the airlines did and came out leaner and stronger.

I give my 2 kids $10 for every "A" on there report card. There grandpa is now giving them $20 for any C,D, or F.

How hard do you think my kids will be studying?

Got to love this country for rewarding failure.

Why would you try and rescue an arcane industry? The future of automobiles
is tied to the future of our energy policy.

Wouldn't you first have an end goal and then see if the existing
infrastructure matches where you are headed? Why doesn't the heir apparent
step up to the plate and give us our direction? Is he tied to unionism? Read
"The Audacity of hope" it's laced with inferences to unions.

The days of gasoline/diesel based transportation will soon be replaced by
fuel cells or something other. This call for aid is nothing more than
cronyism/nepotism. Our country has always pandered to corporations not the
people.

The industry will correct itself.  The premise that 2 million jobs will be lost is unreal but a mere fear tactic.  The auto industry will not fall off the face of the earth.  American's will still buy vehicles, just at a reduced pace... nothing wrong with that.  The jobs locations will shift as likely will the badge they represent (ie, not GM but Toyota or whatever).

Remember the auto makers have already received assistance to the tune of $25 billion.  Who really thinks printing more money will help the situation; it only further devalues our world position.

A quick glance at the liabilities attached to each and every auto produced by GM and Ford shows that the legacy contractual agreements in place with the UAW are bleeding the margins from autos. The equivalent salary for UAW workers looks in the +$75 range whereas the Toyota, Isuzu etc. US plants have equivalent labor rates around $45. Now, if we bail out the US autoworkers, what will change that liability? Actually, I believe nothing will change! The money will be spent to keep current contracts in place, or at least till the UAW takes over the legacy health care in 2010, when I believe that they will find that they too will be unable to continue to carry that burden. A UAW health care bail out will then ensue from the Democrat controlled congress and Executive branch. So we can look forward to a bail-out once again in 2010 or soon thereafter but this time of the UAW. Meantime, little will change at Ford or GM where the burden was only partially lifted from the relief from the legacy health care. Of course, nothing changes in this portion of the UAW contract to affect wages.

I also believe that the Democrat controlled Congress and Executive will not allow what almost certainly has to happen...that is the UAW will eventually have to accept a lower wage scale to allow the remaining 2 US automakers to compete. However, if I were a Democrat I might consider legislation wherein the control of wages for all foriegn and domestic auto manufacturing workers be brought into a "fair wage" range. These domestically based foriegn manufacturers might be hit with a legislated package of regulations which level the wage and benefit packages within each manufacturing plant to be on a par with the domestic UAW packages. Tarrifs can be levied on incoming vehicles manufactured elsewhere to assist the government in creating this "leveled playing field". What will happen then? Who knows...your Toyota just got much more expensive. Low margin (read high mileage, efficient) cars will disappear from the US market

Based on history, I cannot see the Democrat congress and Executive allowing business to do what it must to level the playing field in a capitalistic manner: that is to renegotiate the UAW (and other union) wages to match their competition.

I'm suggesting that the irrational choice is to impose tarrifs, impart wage controls (price will certainly follow with the government having a large share of the company) and the last thing which a Democrat controlled government will allow to happen will be to let the free market, or what is going to remain, prevail. Legislators may also require certain industries to provide the package of benefits, etc. which bring non-union manufacturing into line with the packages provided by the "big 2 (3)" US automakers. I'm a capitalist at heart and just writing this is killing me!

Its not my mindset I'm talking about but the mindset I have grown used to when socialists run things.

What we will get is a nationalized auto industry and a nationalized banking industry.  Next will be a nationalized health care and then oh let's say a nationalized transportation industry.

You know what we get then.  Take a look at any Soviet Block country because that is where we are headed.

You may not like Capitalism or Republicans but what Pelosi and Reid and Obama are asking for is nothing short of this scenario.

America, as always will survive.  The question is in what form.  Certainly not what our Founding Fathers envisioned.

I understand the ripple effect and it would have a huge impact. When is enough; enough? The pay and benefits for the skill level are outrageous. Will the auto workers / union compromise or will they continue to demand pay and benefits that most of us only dream of? Will the industry wake up and produce a product equal in quality and fuel efficiency of it foreign competitors for a comparable price. I doubt it; if we provide a bail out where will we find the top executives celebrating? I am tired of seeing the corporate world being bailed out at my expense while friends and family are struggling.

The great Emerson said in his discourse on Compensation -"Things Refuse To Be Mismanaged Long" and the current state of the US auto industry is simply this metaphysical claim coming to fruition. When these auto companies started bleeding $100 million, $200 million a month, this is when they should have started making drastic changes to downsize and/or turn around their direction. Not do nothing and let it grow into $2 billion a month. This is business incompetence at its best and yet these executives keep making their multi-millions in compensation while driving these companies into the ground. What would Henry Ford et al say to these incompetents who are putting to death what he/they created??

The problem is that these incompetents know that they are holding the country's economy at ransom. If the government does give the money (which i don't think they should) the shareholders must vote to fire the people who put these companies where they are right now. What a person/groups is probablistically most likely to do is what they have done before. The pattern has been established - it will happen again.

The golden rule for business, regardless of the size, is to run the business from red to black as opposed from black to red i.e. set up expense infrastructure to even run at a profit at the lowest expected dip in sales. Surely you would expect people making $tens of millions in compensation to be able to understand this most basic of business rules. Obviously not in the case of the US auto industry.

I say let them pay the price for their incompetence.

  We have bailed out the banks and this did nothing to stimulate our economy.  We bailed out AIG and look where that money is going.  How many times do we have to make the same mistake. 

   The auto industry needs to build cars that fit the economy, not trucks,Suburbans,Escalades,Hummers,etc.  Lower your prices and maybe you will see a rise in sales.  Make economical vehicles that will benefit us and you will see a rise in sales. 

    I say who ever is failing needs to fail and whoever is adapting will gain strength and succeed.

Is it wrong to say "let them eat cake"?  I have seen a lot of things over a period of decades in the production of luxury cars...all ways of beefing up the overall price of the car.  However, i have seen no progress on making them fuel efficient (as well as affordable...you have to shell out huge amounts for one of those).  Can it be that the auto industry is reaping what it has sewn?  I have seen evidence that a battery fueled car was created, leased to the public and then instantly recalled and destroyed down to the last model...for reasons unknown.  Well, I think i know.  In my opinion big oil has led the big auto makers down a primrose path of diminishing returns, and i just don't see why we should suffer for several years while they use our tax dollars to reverse the damage.  I didn't put them in this situation-they did.

I gave Ford two chances to impress me with their cars and now I vow to never buy an American car ever again. The first time I drove out of the showroom a 2002 Mustang convertible - $30,000 - within months I had water leaks when it rained, stuck down electric Windows, etc. C'mon! Sold that within 12 months. Second time, for the family it was a brand spanking new 2003 Windstar with the works $38,000- within 3 months electrical problems, stuck sliding doors, reverse collision warning signal died, interior lights died, air conditioner/heater completely died and may other minor items also.  The best trade in I could get for my 4 year old $38,000 American car was $5,000 - that's probably also because the dealer had to come and tow it from our driveway because it got to the point that it wouldn't even start.

Then consider during that time, since 2000 we concurrently owned a Lexus RX300 - never had to put a screwdriver to that car. Not once - nada, nothing. Still drive that car today - 8 years later.

So I, just one consumer, had a 100% lemon strike rate with 2 American cars - 2 out of 2! This is why the US auto industry is going under. The $25 billion is only going to go up in smoke. What a waste. Why would you loan money to manufacturers whose product is not good enough to compete on the world market??

Please write or email your elected officials and let them know ,to support President Elect Obama in his efforts to create green jobs that will make us energy independent. America is facing multiple challenges of financial, energy and climate change. JFk said we could put a man on the moon in ten years and we did. There is no reason we can't became energy independent in ten years. For those we say we cant afford it, we can't afford not to. Borrowing money from China to buy oil from other countries has put us in dept. Oil may be cheaper at the moment but the long time cost is catching up to us. Most scientists are telling us global warming is escalating faster then they thought it would. We can create new green energy jobs and electric cars that help rebuild the middle class and make America energy and financially independent. Being green will put us in the black. See the plan at repoweramerica.org

Someone needs to start a petition to not help these horrible companies out. Ford turned my life into financial ruin w/ thier 200 focus that i was very young and stupid to buy. It wouldn't of been that bad of a purchase if the car didn't have 30 recalls in one year, completely loose it's value in 5 years , cost me an extra 500$ per month to fix things that broke on top of my car payment, and die and force me to buy acompletely new car @ 82000 miles. I've beenwaiting for Frod to fall flat on it's face for 4 years now. Reap what it's sown. They ruin alot of peoples lives with thier inferior cars that are absolute garbage. If thet get any money they should be forced to give all thier cars a 150,000 mile warranty to pay for thier past sins and all owners that suffered should get a settlement from them. they have alot of lawyers and bak on the stupidity of young , uninformed buyers. I admit itwas my fault for buying thier car, but they made my situation alot worse because i owned a honda previously, and never imagined that a new car could break down so many times. I paid my Ford off, andwasleft with a dead car that hadno value at the end of my loan. I bought a new Toyota Corrolla and haven't looked back since. The fact that nancy Polosi wants to bail her financial base out makes me sick to my stomache. These companies are a bigger tax on the middle class than anything Bush could ever do. These companies deserve to fail. The people working at them are failures themselves since theyneed a union to protect themfrom getting fired for doing a bad job. Honda and Toyota also have plants in Canada and the U.S.. Those people can relocate, since those companies will have a higher volume in sales if the Big 3 go down. They just won't be in thier precious union and have to actually work for the money they earn. The real problem is since those companies are union the people are lazy and want to do as little as possible. At Honda and Toyota when a bad part goes into the assebly line the employees have a lever to stop the assembly lines, correct the problem and make sure all is good. In the union plants, the employees were pulling the lever all the time to stop the assembly line so they could get a break, so the levers were taken away, causing bad parts and such to be installed in the cars and letting the comsumers pay the price, for the union employees lack of work ethic. If they do geta bailout they should bust the unions, get rid of the pensions and retirement healthcare and let those companies pay a fair wage for an honest days work like every other hardworking person that keeps this country going. Unions and obscene pensons are the cause of all our middleclass problems from high property taxes, taxes in general, and allwe consume. Pensions will destroy our lives as we know it. Everybody needs to fight back for the future of your children. You kids shouldn't bepaying for some overpaid town employee to live a lavish retirement with free healthcare for his family, when someone would do the job better for alot less but didn't know the right people.

When Eastern Airlines went under, their planes did not go to the junkyard, and I suspect their pilots did not become unemployed.   They just flew for a different airline.  If the "Big 3" go under, some better run company will buy the facilities.  The employees of the new company will not have the fat contracts and benefits that the United Auto Workers were able to secure, with the help of the Democratic Party, but the UAW, along with inept and greedy management both conspired to kill the golden goose.

I would not under any circumstance buy a vehicle from Ford, GM or Chrylser right now because I have zero confidence that any of them will be around in a year.  The warranty would be meaningless.  I would have more confidence in their future if they were forced to reorganize under bankruptcy laws which would require streamlining operations and management, and allow renegotiation of contracts and shedding of some of their "legacy expenses" (pensions and health care benefits for retired UAW workers).  Delta airlines (unlike Eastern) declared bankruptcy and continued on stronger than before.

If they remain saddled with "legacy costs" that their competitors don't have to pay, they will never be viable.  They only way they could successfully get enough people to buy their product, which has to cost more because of these expenses, would be if they made a clearly superior product, which they do not.  Detroit made vehicles have improved in quality but few people see them as superior to the Japanese made vehicles.

American workers can build an excellent vehicle.  They are doing so at Toyota plants, Honda plants etc.

Any "loan" given them in their present incarnation will never be repaid.  It will be money wasted, handed to the "Big 3" as they are circling the drain, and much of it will go to pay the pensions and health benefits of UAW members who don't even work anymore.  To do this with tax payer dollars at a time when many Americans are facing job loss, or have already lost their job, have no health benefits at all, have no pension, and have lost the hope of ever being able to retire, would be a travesty indeed.

Just watch "Who Killed the Electric Car" on YouTube. GM had their chance, they created an amazing electric car when California placed a zero emissions mandate on the state. GM met the requirements, put out the EV1, then fought California to lift the regulation. Once lifted, GM went in and swiped ever last EV1 being driven and destroyed it! DESTROYED IT! The drivers of the cars were crushed! Now they want "we the people" to bail them out". Is this some kind of joke! Perhaps they should go to their oil buddies and ask them for a loan!!! I'm all about saving jobs, but GM deserves to go down! If my business goes down do you think the government would help me...NO!

Oh and by the way, a new Electirc Highway Sudan much like GM's EV1 is comming out in 2010. A small car company is making it, and when it does come out I will be the first to buy one! I'm not supportiing American car and oil companies anymore! Oh and one more thing...hydroeclectric fuel cells...it's just another non renewable resource the oil and car companies are trying to push!

To check out the car go t:

#hsv.swf

I see no alternative but to help them. The money should be given as a loan with restrictions applied. We are talking about millions of more jobs our country cannot afford to lose.

With the finanical crisis bailout, we have no idea what is actually happening with the money. There seems to be no oversight or restrictions.  Heard their claim that the criminal CEO's will get their bonuses because they are already in the budget. How and why is our government going along with this?? We taxpayers need to be yelling loud and clear we cannot and will not allow such mismanagement of our money.

The US Goverment was an investor in our industry during WWII. I worked for Corning Glass, one of the companys to benefit. Property of the United States Gov. was on metal plates attatched to lots of stuff.  Even the toilet paper dispensers.  I was there to watch the demise of Corning. I saw little respect for the workers in the factory.  Way too many managers, with huge salaries and perks and an every day 'PRODUCTION MEETING' that lasted for hours.

This time, congress needs to help the Auto Industry but with a few changes from the old way. There should be No Golden Parrachutes & 50% Salary cuts for ALL Corporate Managers (This way,  those  not committed to productivity,will wander off) plus Money MUST go to ReTooling for alternative energy cars.!  Violators should be held accountable to Federal Criminal Charges..for theft and fraud...oh, and make the guilty serve time.

If you let them fold then  we lose 2 million jobs across the country can we afford that. Maybe they should give me the money to buy the car or at least let me get a loan to buy the car. The problem is no one can get credit to buy a car you can give them all the money in the world but if no one can get a loan to buy the car it does no one any good. Tell the banks that if they dont start loaning money then we want are bail out money back from the CEO's,