WASHINGTON (Reuters) - President Bush said General Motors Corp. and Ford Motor Co. should develop more appealing products rather than look to Washington for help with their heavy pension burdens, The Wall Street Journal reported Thursday.

In an interview Wednesday, Bush said he had not talked to the struggling companies about their finances but hinted that he would take a dim view of a government bailout of the top two U.S. automakers, the newspaper reported.

"I have been very reluctant -- I'm mindful of the past where at one point in time, a predecessor of mine was faced with that same dilemma," Bush was quoted as saying. "I would hope I wouldn't be asked to make that decision."

Asked if he had spoken to GM Chief Executive Rick Wagoner or Ford Chief Executive Bill Ford Jr., Bush told the newspaper, "Not about their balance sheets."

"And I haven't been asked by any automobile manufacturer about a bailout," he said.

Asked if the government should take any pre-emptive action, Bush was quoted as saying, "I think it's very important for the market to function." Bush suggested that he felt optimistic about the companies' prospects, according to the newspaper.

Ford (Research) and GM (Research) have said they would close plants and cut tens of thousands of jobs. Competition, particularly from companies based in Asia, soaring health care and pension expenses and production costs have increased financial pressures on the unionized companies.

The newspaper said while neither GM nor Ford has sought a bailout, they have dropped hints they would welcome government help in areas such as coping with rising health care and pension burdens and the high costs of developing fuel-efficient vehicles.

According to the newspaper, Bush suggested that one way automakers could make more appealing products was to promote cars using alternative fuels, a topic he plans to mention in his State of the Union address next week.

Bush said in the interview that U.S. automakers could find new market share in the competition to sell vehicles that run on alternative fuels.

"As these automobile manufacturers compete for market share and use technology to try to get consumers to buy their product, they also will be helping America become less dependent on foreign sources of oil," Bush told the newspaper.

http://money.cnn.com/2006/01/26/news...reut/index.htm

Yeah, dammit, make better cars.

 

To expect a guy that ran 2 businesses into bankruptcy (and made money from having them bought out of his control) to have any sympathy for a struggling business is goofy at best.

I could care less what the goober said. He knows nothing about running a business, his record is 0-2, and he should not be commenting on such items as a government representative. He obviously has no clue what kind of employment and economic jeopardy the big 2 automakers yield in our US economy. If they go down, so do HUNDREDS of independent businesses with 100,000's of workers too.

The simple history lesson behind Chrysler in the 1980's should be enough to prove that good things can come from helping those in need when justified.

King Bush has spoken.
GM and Ford must make cars of better design, or they will be wire-tapped, and the US will declare war on their design departments for having "designs of mass destruction".

Bah!

 

So neither GM nor Ford have suggested that they should be bought out, and yet some stupid reporter looking for a story asks the president if he would do it for them and it is bad news for GM and Ford? Sounds rediculous. I think that some form of Governmental control or restraint needs to happen with healthcare within the next few years before the problem get worse. Do it now and Help 2 of the largest employers in the nation, certainly in number of retirees, or do it later and basically screw them over some more. Either way SOMETHING needs to be done. BTW I work in healthcare and will for the rest of my life I see how things happen and understand why INS companies do what they do I just don't see the justification of this unforseen profit mongering by them.

Something is going to break and just recently something did in Louisville, KY Norton Healthcare a regional hospital and immediate care center provider decided to end its contract for both healthcare AND in network status with Humana, a very large healthcare provider (and local job provider). So that means that over 1,000 Norton employees won't use Humana INS and several hospitals in the region won't accept Humana's in network benefits, instead patients will have larger deductibles AND higher copays. This puts a huge dent in the Humana "provider network."

Anyways I am rambling. Something needs to be done and I think in the next elections it will be a hot point for debate.

 

I wonder what his position will be when those HUNDREDS OF THOUSANDS of workers from GM & Ford, outside suppliers, outside electronics people, etc... begin lining up for unemployment checks, government assistance programs, pensions, medical coverage, etc...

Even the government of Quebec was smart enough to do the math when GM planned to close their Ste Therese plant. Giving a couple of billion in no intrest loans or even simply backing a company's efforts to just get private loans (like Chrysler recieved) which will be paid back is far cheaper than losing hundreds of billions in social spending because you sent a company belly up.

GM has more assets than cash. Ditto Ford. Backing loans or granting no intrest loans for these guys while holding their assets as collateral is like me getting a $1000 loan while the bank holds a $8,000 car as collateral. It's a no brainer any business person would jump at. Especially if the alternative is my costing them $20,000 otherwise.

Even simply enacting the exact same import laws countries enact on us or charging a tax surcharge or tax break based on automotive legacy costs would go a long ways, methinks.


BTW, proudpony, I'd say it's going to be 0-3.

 

Accually... it'll probably be a lot more... look at the airliners...

GM needs to get rid of retires... USA do a bail out? and GM would be back in it...

a terriff on imported products would do tremendous works...

All insurance rates need to decline, do we have income reports from the company signing the UAW's health care?

What about workmans comp?

Insurance needs to be governed just like intrest rates are...

 

Kill the retirees!

 

lol i was going to put in a line about assasins but accually a lot of the members on here have parents who used to work on the line up or whatever...

gotta respect the friends and F the rest just kidding though... yea a federal buy one time buy out would be like the sweetest thing since sliced bread

 

Bush is damned if he does and damned if he doesn't.

If he didn't bail out FORD or GM then he looks like he anti-worker and if he does bail them out it makes him look like he saving his big corporate buddies from the consequences of making gas guzzeling and earth-killing trucks/SUVs that aren't selling like they used to.

 

Ford made $2 Billion last year, I made $40K+ something, I need that bail out more than Ford

Seriously, Ford is making money and GM is getting back on track, I don't think either will need a bail out. But if in 2-3 years is still bleeding Billions by the quarter then I think Uncle Sam will step in and help. Maybe not GM directly, but at least do something about the retires and health care costs.

 

I am kidding, I have the utmost respect for folks that have worked hard most of their lives.

 

Exactly! Why do we allow free access without the same in trade?

I'll not engage in the Bush bashing.....because I know the alternatives we were given the choice of in the last two elections would have been MUCH worse.......our system is truly broken when these were our only real choices.....

 

this is what i wish AMerica would do for every business...

if its better for american companys to go to other countrys for work, or other countrys to sell to us...

Why is it that all Japanese companys prosper? do they create the best products... nope... are they inovative? nope... we do all that, they just make it cheaper then us because their governement aids the companys... Toyota gets anywhere from 2k-10k on their vehicles produced in Japan, from Japan... let alone the manipulation of the currency?

 

Surcharges and/or import taxes will just make cars more expensive which will only contribute to inflation which will make people have less disposable income.

While this might be a good short term solution but in the long term GM and Ford must correct their money-bleeding business model and make cars that people will pay a premium for. When the government gets into the business of proping up industries that can no longer make a profit with their current business model, it will unfortunately drain money, energy and resources away from those industries and entrepreneurs who can. You either have to finance the future or pay the price of proping-up the past and in then end you have to put your money where you will actually get the best return on your investment.

Historically speaking, government (by design) is an inherently a slow, inefficient, non-innovative monopoly and I wouldn't trust any business decision they came up with or any advice how to cut cost since they are the worst offenders of all time. I personally view the government more of a “leach’ then a “life-raft” .

For those who doubt the free-market or dont understand how it really works I 'really' suggest that you visit http://jonathangullible.com/ and click on the short Flash-animated cartoon in the bottom right-hand corner titled "Philosophy of Liberty".

Or if you think we are all going to hell in a handbasket anyway, checkout the comical 'End of the World' cartoon @ http://www.jokaroo.com/ecards/funny/...the-world.html

 

0-3?

As for the retirement issue:

http://www.theonion.com/content/node/44679

Now back to your regularly scheduled thread.....

 

*High five*