Comments on: Bailout for automakers? http://blogs.reuters.com/great-debate/2008/11/17/bailout-for-automakers/ Thu, 21 Jul 2016 07:57:19 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: Nick http://blogs.reuters.com/great-debate/2008/11/17/bailout-for-automakers/#comment-3333 Wed, 17 Dec 2008 06:33:24 +0000 http://blogs.reuters.com/great-debate/?p=545#comment-3333 Let the bad quality auto makers go under. Then, buy out the foreign automakers who are successful and conduct business as successfully as they do. After all, this is the U.S.of A. Why should bad products be celebrated and protected? As far as the employees are concerned, if they are good they can find jobs elsewhere.

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By: kev http://blogs.reuters.com/great-debate/2008/11/17/bailout-for-automakers/#comment-3331 Wed, 17 Dec 2008 02:22:39 +0000 http://blogs.reuters.com/great-debate/?p=545#comment-3331 Asian car companies invest for the long term. Japan finaced Toyota and Honda with low interest goverment backed loans. Loosing money for decades was OK as long as it helped eleminate the competion. Lately southern states aided asian car companies to the tune of over 4 billion in incentives, not loans but free money if they located in thier states. Add that to the billions already loaned and it only seems fair to help our local auto companies. Countries around the world are helping automakers in thier countries because the industries are so important to local economies.

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By: Ed Sand http://blogs.reuters.com/great-debate/2008/11/17/bailout-for-automakers/#comment-2543 Thu, 04 Dec 2008 23:40:51 +0000 http://blogs.reuters.com/great-debate/?p=545#comment-2543 For years the auto industry (manufacturers, unions and dealers)has led the way in overcharging for its product and over compensating its employees at the expense of its customers, parts suppliers and stockholders. And they didn’t start to provide good quality, more fuel efficient products until foreign competition forced it. Now they should continue to reap the rewards of that behavior even though it has turned negative for them. I would not support a bailout unless and until I see sufficient contrition demonstrated by the actions they take in their restructuring.
(For example, how would you evaluate an executive giving up one years salary against what he has already been paid in salary, stock and bonuses over the years and against what he will gain if the company survives and the stock goes up?) Don’t you think those whose actions caused the problem should pay (or at least help to pay a large part for the correction?

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By: Len http://blogs.reuters.com/great-debate/2008/11/17/bailout-for-automakers/#comment-2528 Thu, 04 Dec 2008 21:47:04 +0000 http://blogs.reuters.com/great-debate/?p=545#comment-2528 By the way, those that comment that allowing bankruptcy will cause a big ripple in our economy is mistaken. Look at the airlines, they all reorganized under bankruptcy and people still flew their airlines during the reorganization. Nothing will change the moment they file. The dealerships will still sell cars. They will still service them. And, the automakers will continue make them. The only thing bankruptcy will do is allow the companies to eliminate big liabilities, namely the pension, healthcare, and the unions. Listening to Rick Wagner testify that a consumer will not buy from a bankrupt company is bull. I for one will purposely buy American if they file bankruptcy even though I haven’t bought American since 1999. I would do it because I would be encouraged that the automakers could finally compete now that the unions were dead.

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By: Len http://blogs.reuters.com/great-debate/2008/11/17/bailout-for-automakers/#comment-2526 Thu, 04 Dec 2008 21:40:13 +0000 http://blogs.reuters.com/great-debate/?p=545#comment-2526 This is a very simple case. The three automakers will never be competative with the noose of the UAW and its outlandish contracts around its necks. The only way this makes sense is to allow each company to reorganize under bankruptcy protection, disband the union, drastically reduce its pension and healthcare liability to all of its retired workers and then, get financial aid from the American Taxpayer. With a clean slate and cash on hand, the US Automakers have a chance to survive and thrive. Otherwise we are postponing the inevitable. We all know the US Government will take the easy path and just give them the money even though any sane individual knows bankruptcy is the right course of action.

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By: david pear http://blogs.reuters.com/great-debate/2008/11/17/bailout-for-automakers/#comment-2213 Mon, 01 Dec 2008 19:15:43 +0000 http://blogs.reuters.com/great-debate/?p=545#comment-2213 U.S. Automakers and UAW must take heed from the foreign Automakers that are manufacturing cars and trucks in the good old U.S.A. and apparently making money. I have not heard of any of them asking for a rescue loan. It is common knowledge: American autos are as good as any automobile manufactured in the world. The Big Three were strong in the SUV and truck market because there was good strong demand and limited completion from foreign companies. However, providing small economical cars with a good safety rating in this current environment seems impossible. Let us face it; with “the Cost of Sales” generated by both labor and management and competition of the foreign companies makes profit margins very small. In the case of the Big Three, they are non-existent. As we know, at this time large SUVs and pickups are very hard to sell. What can be done?

The U.S. Automakers need a large loan from their Uncle Sam, and they need the loan right now! However, before that can happen, they must provide a plan of action. For both the Big Three and the UAW to show good faith and reality adjustment, they must cut wages, benefits or both for labor and management to show America and the Congress they are intent on long-term survivability. Some people say, “Let them go under”. Some say, “The UAW is bad and we do not need unions anymore.” Without the standard of living that unions have afforded America and working conditions they have improved through legislation, America would be unfriendly and unfair to the worker. Fact remains that unions as well as manufactures must change with the times or goes the way of the dinosaur. If the Big Three go under, we could see a loss of as many as 14 million jobs* in this country. It is my understanding that without that 25 billion dollar loan the Big Three will go into bankruptcy. I think I can safely say that being the highest paid unemployed manufacturing workers and managers in the world without a job is not as preferable as being a worker, manager or CEO with a somewhat diminished but livable income. I think that it is time the Big Three to step up for America and themselves. I think Americans would appreciate a similar sacrifice by all the upper management of the many financial institutions that have received rescue payments from the U.S. Government. I believe it is said, “Self sacrifice is good for the soul” and it is also good for our economy right now.

I know that giving part of ones’ earnings back to stay in business and remain employed is a good strategy because, in 1980 I was a union electrician whose market share was suddenly being reduced through a large influx of non-union electrical contractors going after industrial construction projects which were the union contractors forte. We took a 40% wage reduction in wages and benefits to stay competitive. Believe me, it was a difficult period, but our union and our jobs survived and we eventually regained our market share by keeping track of what the competition was providing and proving our value. It’s time for the U.S. Automakers to do the same thing.

*Rampell C. Economix: How Many Jobs Depend on the Big Three? nytimes.com November 17, 2008, accessed: 12/01/2008.

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By: Kamaria http://blogs.reuters.com/great-debate/2008/11/17/bailout-for-automakers/#comment-2211 Mon, 01 Dec 2008 18:28:50 +0000 http://blogs.reuters.com/great-debate/?p=545#comment-2211 I believe we should help GM and Chrystler, but only with a restructured plan with all of the Executive perks taken out, and a plan to manufacture and sell electric and solar vehicles. As for Ford, they have another plant already in Europe putting out a car this year that gets 60 miles to the gallon of diesel. Why doesn’t Europe bail them out? And why doesn’t our country allow us to have clean burning diesel vehicles? Ford has said that they won’t be selling any of these vehicles in this country because our government will not allow them. I understand that they burn cleaner than the traditional gas burning vehicle, so what is the problem? I think we should let the government know we want these cars in our country. We should bail out Ford, although I believe that Europe should help bail them out. Europe is getting the most benefit from Ford’s staying in business.

I also agree with prior comments, we need to look at the big picture. We spend more money rebuilding Iraq, Afganistan and other Middle Eastern countries than we spend on rebuilding ours. Who ever said that when we go in and blow something up, we have to then rebuild what we destroy. No other country does this. The Middle Eastern countries have plenty of surplus money from the recent rise of cost in oil to rebuild their on countries. Didn’t the Americans go to their countries to help them? We have already spent enough money in their countries by supplying the military support they needed. Why do we then have to spend more money on rebuilding their country, when our own is in desparate need of repair. We need to bring the military home and rebuild our own country. If you have not seen the I.O.U.S.A. video you should. I went to the Countrywide broadcast at the Theatre. The basic point of the whole thing is that we need to buy American!!!! For this country to survive, we need to buy American!!! I’m not saying that Walmart is at fault. It is our fault for sending our manufacturing out of this country. And it is not all China. When I went to buy envelopes yesterday, they were made in Mexico. It is getting harder to find items Made in the USA. I believe that the government needs to invest in new start-up companies that will begin to manufacture more American made products in this country. At the same time they also need to help the manufacturing companies that still remain here to keep their businesses going. Although, that all depends on you, the consumer, to Buy American!!!

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By: Diane Miley http://blogs.reuters.com/great-debate/2008/11/17/bailout-for-automakers/#comment-2201 Mon, 01 Dec 2008 16:46:56 +0000 http://blogs.reuters.com/great-debate/?p=545#comment-2201 Why is it that the Sentate and Congress do not see the big picture. If this country let the big 3 go under it will cause the biggest ripple effect that they have ever seen.
This country cannot afford to lose more jobs, more tax revenue, more depression. If you want to help the economy wake up and see the big picture.
Does anyone up there have any common sense???????????????

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By: AKG http://blogs.reuters.com/great-debate/2008/11/17/bailout-for-automakers/#comment-2200 Mon, 01 Dec 2008 16:37:38 +0000 http://blogs.reuters.com/great-debate/?p=545#comment-2200 THIS IS NOT A BAILOUT FOR THE AUTO MAKER’S IT IS A LOAN. IT WAS A BAILOUT FOR THE BANK’S AND AIG. I GUESS THAT’S BECAUSE WHEN IT COME’S TO BANK’S AND INSURANCE COMPANIES IT IS HITTING THE POLITICIANS POCKET’S, THAN THEY GIVE MONEY NO QUESTION’S ASKED AND BY THE WAY DOES AIG, CITI BANK AND THE REST OF THE BAILOUT FOLK’S FLY IN PRIVATE AIRCRAFT? GEE NOBODY ASKED THAT QUESTION.
AND I BET MOST OF THESE POLITICIAN’S DRIVE FOREIGN CAR’S TOO. THE AUTO INDUSTRY IS PRETTY MUCH THE LAST IN THE UNITED STATE’S TO PAY A DECENT WAGE AND OFFER A DECENT BENEFIT-AND THE GOVERNMENT WANT’S TO TAKE THAT AWAY, I GUESS BECAUSE THEY WOULD LIKE US TO BE THE SAME AS MEXICO YOU ARE EITHER RICH OR YOU ARE POOR NO MIDDLE-AND YOU CAN STAY POOR BECAUSE THAT’S THE WAY THE GOVERNMENT WANT’S IT.

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By: new car buyer http://blogs.reuters.com/great-debate/2008/11/17/bailout-for-automakers/#comment-2197 Mon, 01 Dec 2008 15:06:15 +0000 http://blogs.reuters.com/great-debate/?p=545#comment-2197 No bailout or loan. Let the companies fail and the profitable parts be bought and run by other companies with the non-profitable parts be discontinued.

Why aren’t the foreign car companies among this group of CEO’s asking for help when they also build cars in the US and employ US citizens?

Here’s another reason why not: I will be buying a new car within the next 3 months and no American car company is on my short list.

Why? Quality, reliability and resale value.

Please note that I didn’t mention price.

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