I think the bailout is a bad idea. I think a $25 billion bailout will simply be used by GM and the others to continue doing what they were doing before and we'll be right back where we were before in a few months, only $25 billion poorer. People who think GM will use the money to make future green cars are fooling themselves. GM will use it to pay off their existing debts and costs, and then make some lame excuses when called on it by Congress. No one will have the guts to actually put GM executives in jail for mismanaging the bailout money.
The best solution is to let GM and the others declare bankruptcy. This will legally let them out of their crushing debts and renegotiate their contracts and agreements with the unions. GM can then sell off non-productive assets and emerge from Ch. 11 bankruptcy a leaner, more forward-thinking company. Hopefully, GM will also bring in a management team specializing in bankruptcy, who will then cut GM executives who pushed the company into its SUV-centric mentality.
Only after GM emerges from bankruptcy should a $25 billion reinvestment package be considered for the company. At that point, we'll be in a better position to see if GM has put in place the mechanisms and corporate philosophy to use that money to make better, greener cars.
Last edited by Smart Enuf; 11-18-2008 at 09:03 AM.
Reason: increased the $25 bailout to $25 billion.
You made the right choice when you put your confidence in General Motors, and we appreciate your past support. I want to assure you that we are making our best vehicles ever, and we have exciting plans for the future. But we need your help now. Simply put, we need you to join us to let Congress know that a bridge loan to help U.S. automakers also helps strengthen the U.S. economy and preserve millions of American jobs.
Despite what you may be hearing, we are not asking Congress for a bailout but rather a loan that will be repaid.
The U.S. economy is at a crossroads due to the worldwide credit crisis, and all Americans are feeling the effects of the worst economic downturn in 75 years. Despite our successful efforts to restructure, reduce costs and enhance liquidity, U.S. auto sales rely on access to credit, which is all but frozen through traditional channels.
The consequences of the domestic auto industry collapsing would far exceed the $25 billion loan needed to bridge the current crisis. According to a recent study by the Center for Automotive Research:
• One in 10 American jobs depends on U.S. automakers
• Nearly 3 million jobs are at immediate risk
• U.S. personal income could be reduced by $150 billion
• The tax revenue lost over 3 years would be more than $156 billion
Discussions are now underway in Washington, D.C., concerning loans to support U.S. carmakers. I am asking for your support in this vital effort by contacting your state representatives.
Please take a few minutes to go to Facts About the Auto Crisis - GM Facts and Fiction, where we have made it easy for you to contact your U.S. senators and representatives. Just click on the "I'm a Concerned American" link under the "Mobilize Now" section, and enter your name and ZIP code to send a personalized e-mail stating your support for the U.S. automotive industry.
Let me assure you that General Motors has made dramatic improvements over the last 10 years. In fact, we are leading the industry with award-winning vehicles like the Chevrolet Malibu, Cadillac CTS, Buick Enclave, Pontiac G8, GMC Acadia, Chevy Tahoe Hybrid, Saturn AURA and more. We offer 18 models with an EPA estimated 30 MPG highway or better — more than Toyota or Honda. GM has 6 hybrids in market and 3 more by mid-2009. GM has closed the quality gap with the imports, and today we are putting our best quality vehicles on the road.
Please share this information with friends and family using the link on the site.
As of Oct 30th, US light vehicle sales were 11,601,104. Source: WSJ.
See? The sky is not falling. People need and will continue needing cars in order to get to work, school, whatever.
People are using the "sky's falling" argument to get a freebie paid out of other people's taxes. Why is it that well-run car plants that manufacture millions of cars in the U.S. with U.S. labor such as Mercedes-Benz, Toyota, Honda, Nissan, Subaru, BMW, etc., are not trying to coerce money out of the taxpayer?
Every one of these plants are in Federal Welfare States-states that contribute less in Federal Taxes than they receive back from the government.
All of these states gave generous tax incentives for the car companies to locate plants in their state.
All have labor laws written against workers rights and against collective labor, and workers willing to work at whatever pay rate is offered. South Carolina (BMW), Alabama (MB), and Tennessee (Nissan) are three of the most anti-worker states in the US.
I think that the full picture for car sales needs to be looked at-not the 10 month's of this year-but the wall that has been hit by all the car companies from August on. The chairman of Nissan/Renault has stated {also in the Wall Street Journal] that it will lose money in the second half of this year.
Primarily I do not accept that wholesale job losses, at a good pay rate and with benefits are a good thing. Workers are an asset [not a liability], in spite what the wall street traders and business management students have been taught and spewed since January 20, 1981.
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