Evotion

Was going to post this in another thread but didn't want it getting lost in the negativity.



By JULIE HIRSCHFELD DAVIS, Associated Press Writer Julie Hirschfeld Davis, Associated Press Writer – 52 mins ago

WASHINGTON – The White House on Friday threw its support behind a plan to speed release of $25 billion in existing loans to the Big Three automakers but rejected a Democratic proposal to use money from a financial bailout to help the troubled industry.

The $700 billion financial rescue package was never intended to help automakers and shouldn't be now, White House spokeswoman Dana Perino told The Associated Press. But since Democratic leaders in Congress are pressing forward with a proposal to carve out a piece of its for the auto industry, she said the White House has decided to pursue a different approach: accelerating the availability of federal loans Congress first approved in September.

Those loans were approved to help automakers build more fuel-efficient vehicles and become more competitive companies in the global marketplace. The administration now supports allowing the loans to be released more quickly than the original legislation prescribed and to be used for more urgent purposes as the companies struggle to stay afloat.

"Democrats are choosing a path that would only lead to partisan gridlock," she said. "We are now actively calling on Congress to amend the loan program."

350 HRSS

Good news....I am happy to read this...let's hope it goes thru...

1fastdog

Glad to see that this might at least clear up the false notion, which is rampant, that the car companies already got the $25 billion retool for alternative fuels vehicle money and blew it already.

MarcR94v6

I'ts about time. I was afraid that current administration was so stubborn to have it their way, they were going to sit on it until Obama gets into office and does it anyway.

So, now this, combined with whatever additional plan Obama may implement means very, very good news for GM.

JakeRobb

Just a reminder, everyone... talk about the plan, the potential outcomes, etc., but leave the politicians and parties (and your opinions thereof) out.

trm0002

Does that somehow include leaving out the UAW?

blackflag

I don't think individuals should be taxed to give money to companies...whether it's a bank or a car company.

I also don't think that an additional 3 years is going to make a difference when they had 20 to come up with a plan.

1fastdog

Reminder...

This is not the loan being requested. It is the monies to retool and pursue fuel effiecient vehicle production.

This is not the survival loan at all.

guionM

Yes.

I agree.

Problem is they have become such a part of the economy we'd be more indebt and it would be far more costly (and I do mean, ALOT more costly) to the US taxpayer simply let them crash.

The important thing is to return GM to solvancy and profitability. Even if we have to send everybody in upper management packing in the process.

scott9050

The part that bugs me about the whole situation is that the credit crisis was caused by Wall Street, meaning they are at least partly responsible for the mess that G.M. is in right now. If people with average credit could actually buy a car right now things would not be as bad. They managed to accelerate the decline of G.M. to the point where they are no longer able to turn things around on their own. For the government to turn their backs on them now is unbelievable.

blackflag

Until when? The next time they're not competitive and running out of money?

I hear what you're saying about the number of employees and the effect on the economy, but it's going to happen sooner or later...because they just can't think long-term and strategically. They have a proven track record of not being able to compete.

If that weren't true, they'd be able to get money from the private sector. But they can't, because nobody wants to invest in them now. So I am forced to? How does that work? We look down our noses for France and China doing things like this, but it's fine when we do it?

I hate to say it, because these companies are near and dear to my heart, but I'd rather keep my tax dollars and let them fail. That's the american way.

90rocz

Part of the problem might also be the loss of millions of potential sales from lost good paying manufacturing jobs. Here in Ohio it's cost many bankruptcies, and foreclosures, snowballing for years.

I'll have to postpone my dream of driving a New Camaro, b/c my layoff looks pretty permanent this time, and retraining will take me a little while.

On one side, I don't feel sorry for companies in this position who are partially responsible. On the other, as Guy said, we simply cannot afford the losses that would result from GM going under.

blackflag

One could just as easily say that we "cannot" afford to do this. Where the country is already in massive debt and each additional dollar spent is borrowed from Asia...there is not an endless supply of dollars out there.

Then I have to wonder...if the country "cannot" afford for these companies to go out of business, then how long are we willing to finance them? 3 years? 10 years? If they're still failing 20 years from now, are we going to continue to force the taxpayers to finance their bad business plans?

If they are going to go out of business at some point, I would rather they do it before we waste $25bil. If you took $25bil and divided it across the total number of people who would be unemployed...it's a lot of money. Enough for each person to find new work, get training for a new job, etc. $25bil to a failed company could be just throwing money away.

JakeRobb

Actually, no, I don't think so. Stay away from union-bashing in general, but the UAW is not out of bounds.

MatthewRox

Sad it is to be said, if these 3 big manu. were successful, they would have not been creamed financially thus far. They are greedy and did cashed in on the SUV boom a couple years ago. When it comes to loans and of the sort, GM and the dealers have their own financial institutions.

Just think, you can be taxed more to save these institutions at regaining ground and prosper in the future, but who will be there to save you whence while standing on the unemployment line collecting a couple bucks that would not even get you through the month.

With these 3 big names falling, a pyramid of jobless claims with ensue... but just think, many have already lost employment so far.

Another thing to think about is: The Asian Vehicle manufactures operating in the United States is not requesting a Bailout? I wonder why? You think they will get a bailout if they asked? Do you think Congress would opt to assist them since they employed Americans?

It does boil down to intelligent companies and proper managements, resulting in capitalism.