US automakers need $40 billion
A Ford plug-in hybrid at NAIASThere is an interesting article, The Next Bailout: Detroit,
that covers the latest talks the Big 3 US automakers are having with some members of Congress. Apparently, the Big 3 need about $40 billion to both survive and to develop next generation hybrid cars and electric vehicles.
This blog has covered automaker bailouts in the past, and most that have commented seemed to be against any bailout. Nonetheless, feel free to again express your opinion for or against, but how likely do you think an automaker bailout is, regardless of your bailout opinions? Is it a sure thing? Is it dependent upon the race for President?
Labels: Congress, electric cars, Hybrid Vehicles
posted by Dahcredyns at
11:35 AM
14 Comments:
It' a sure thing if Obama wins. He'll have to pay off his UAW debts.
In a lot of ways I want to support such a bailout, but Detroit seems to continually blame everyone but themselves, when they deserve much blame. If they can't take responsibility for the past, can they really be trusted for the future?
That's interesting. I've met with a bunch of GM execs and, in person, they are always willing to suggest that they made mistakes in the past.
Yet, publicly, at least the top brass of the company always seem to deflect any criticism. Even lately, GM claims no one could have foreseen $4.00 gas, yet after 9/11, there were numerous national security experts, for example, warning of even higher gas prices.
Maybe its time for a different PR approach
I am still holding out for the hybrid hummer! No funding until then ;-)
John,
Auto Dent Prevention
With GM looking to sell Hummer, you'll probably have to wait for the Tata Hummer hybrid.
It's nice that they want $40BB...let them get it from the Iraqi war fund.
The big three might not be in such a mess if they had not been strangled by the UAW for the last half century. That would be the Un American Workers. And Noz, get a life!
Michael,
In a country where you have an abnormal fear of socialist ideas (i.e. ideas that actually give a shit about people in general), I can see why you think the UAW sucks for protecting its employees.
Of course, corporate greed is good and accepted. But others getting a piece of the pie just won't do will it now?
Learn a few things Michael...learn what "sophisticated propaganda" means.
Not sure what "un-American worker" means...perhaps you should also learn more about the history of your own country and know where the place of unions really are.
Oh by the way, the unions didn't ruin GM...the corporate management ruined GM. OMG...how about that?
noz-
i definitely think the UAW deserves much blame. for instance, when a certain car wasn't selling, such as a gas-guzzler, gm couldn't just stop. their contract with the union required that either so many vehicles were made at a plant, or you paid the workers even if you didn't make the vehicles.
yes, often the union does protect workers. but the union is against change as a normal course of business. such resistance has put a stranglehold an american automakers being able to adapt to an ever-changing market.
gm corporate deserves much responsibility, but the UAW also deserves a lot of blame.
the inability to change has killed the US auto industry more than anything else, and the union is always against any change but a wage increase. that's simply not a sustainable position in today's 'business at the speed of light' world.
I guess my response is all in how we define a "bailout". I'm all for government sponsored incentives that reward American auto-makers for rewards in efficiency and next-generation vehicle breakthroughs. I'm not, however, in favor of just handing over $40 billion and letting them have at it.
The thing is, the American auto industry is one of the few manufacturing staples left in the US. Our economy *needs* these companies to survive (and not get acquired by foreign interests, at that). Should one of the big American auto makers get swallowed up, man, if that ain't writing on the wall, I don't know what is.
the importance of the us auto industry is nothing compared to what it was two decades ago, even a decade ago.
in another decade, regardless of any bailout, the US auto industry - almost certainly - will be even less important.
can a bailout really change this, or just waste a lot of money delaying the inevitable?
After hearing so many stories of cars that were planned, invented and/or prototyped that had awesome m.p.g. stats or tales of vehicles that didn't even need fossil fuels and were kaboshed by bigger industries such as the petroleum industry and others, one has to chuckle at the automakers plights.
Perhaps one of these companies would step away from the norm and manufacture a car for the consumer/the environment and not for their profits alone.
It makes a lot of sense that that company would have to make adjustments for its economic future. But, their future would be greater than those companies that refuse to follow any path such as that, and continue to put products out that are insults to our intelligence,comfort and future longevity.
However, it is we the people that continue to keep these companies in business because without their damaging vehicles, we would be forced to digress in transportation luxuries, walk more and accept less than we became used to.
We the people are fed up and are economically forced to create a change that is hitting the car makers and oil industry more than significantly.
Our greed to have the biggest and the best and the makers greed to bring in the most are resulting in off the wall tolls being paid by us, by them.
Change, what does that mean?
The non-compromise of "fat as a hog", "the life of Reilly" and/or "living on easy street" is what caused us to crash head-on into the problems we have today and the airbag protecting our being a lasting society has been inflated.
Now we need to deflate these daily events and live as eco-friendly and money friendly as we never had to or wanted to before.
Why does it not surprise me that somewhere in our country's leadership these companies will be thrown a life preserver, and at our expense.
No wonder why we are all afraid from day to day of things becoming bigger than we are.
They are!
The medical situation, the ecological forebodings and the obvious loss of our being a super-power is all there staring us in the face.
Don't close your eyes and think it can't see you. It does and it is staring us right in the face.
couldn't agree more drummerdan.
The need for change is critical. Throwing a life line is one thing but the gov't cannot support the industry for ever. Its time for the automakers do a fundemental change in the way they do business. I get upset when people say that America is done and all hope is lost. We put a man on the moon...brought about the computer revolution and the govt helped start the beginings of the internet. Where is the Leadership in this country. Nobody has the balls to say this is how we are going to do it and rally people to do it, Unions, Management and worker alike. I think a lot of changes are comming. I hope someone in the American auto industry has the vision to radically change the American auto industy for the 21st century. Who is the leader who will stand up and say enough is enough. Where have all the Leaders gone to?
I don't know where the leaders are, Alex, but, like you, I really hope they turn up soon.
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