Republican opposition killed a $14-billion auto industry bailout plan in the Senate on Thursday night, putting the future of U.S. automakers in doubt and threatening to deliver another blow to the economy.
The measure died after a last-ditch effort by Senate Democratic leaders to strike a compromise that would have lured enough support to save the legislation, which was crafted in consultation with the White House.
The bill’s failure raises the possibility of bankruptcy by one or more of Detroit’s Big Three and puts new pressure on President Bush to authorize emergency loans for the automakers from the $700-billion Wall Street rescue fund, a step he has adamantly refused to take.
The collapse of General Motors, Chrysler or Ford — along with many of their suppliers and dealers — could throw hundreds of thousands more workers onto the growing unemployment rolls and further cloud the closing days of the Bush administration.
“We will leave here tonight to go home for the holiday recesses, but for the literally hundreds of thousands of people whose jobs depend on this industry, this will not be a joyous season, wondering whether or not their jobs, their livelihoods, their homes, their children’s futures are at risk,” said Senate Banking Committee Chairman Christopher J. Dodd (D-Conn.).
The automobile industry has been in trouble for a long time. There is very little “out of the box” thinking. I believe not much has changed in their business model since the Model T was built….the difference is that then, people wanted to buy their cars.
In support of my brother several years ago, I purchased an automobile made by GM (he’s worked for General Motors for 31.5 years). It was so poorly engineered and so low in quality I dumped in within eight months and bought my second VW. The thing was supposed to be an SUV. Problem was, I couldn’t get my bike in the back without asking someone to help me…this was fine if I had someone to help me. It was like trying to fit a square peg in a round hole. Now, I have to ask: why didn’t the engineers have a woman who isn’t very tall, put the bike into the back and then take it out? Simple thing they could have done BEFORE they started mass producing this lousy “SUV”. There was horrible road noise, the sun visor kept dropping down. This was a brand new car. My brother apologized to me.
Also, the three companies we are debating are just that: THREE companies. Not on called “The Big Three”. They should not be treated as if they are the same, they are not. They need new leadership, new ways of thinking and much better engineering. American-made cars are ugly. I mean, take a look at the Chrysler 300. Yuk. Or the very stupid PT cruiser. How about the really ugly Cougar….They are in bad taste. If Chrysler needs to be “sacrificed” the other two do not. If GM is allowed to fail, the other two do not.
I don’t support “allowing” them to go belly-up. Not at all. I also don’t support the notion that it is unpatriotic to buy a “foreign” car. The auto industry is and never has been entitled to sales success. The majority of auto workers have been indoctrinated in many ways; one of which is the “Real Americans Buy American”. I disagree. I buy what I feel is the best value and for decades, GM, Chrysler and Ford have been making a really bad product. They need to change the way they do business and they need to do it today.
I have a questions that I’m sure someone out there has an answer to.
1. Why not use this crisis as an opportuinty to replace the giant fleet of government vehicles with “green” autos?
We’ll give funds and in return the gov. fleet gets upgraded as the first new “greeen” models off the line. Typical overpaid government contract but it would inject cash flow and force them to use the funds to develop green autos. Plus we’d be replacing inefficient cars.
that or just dump the whole thing and give a ton of money to the Tesla Company (http://www.teslamotors.com/)
No reason we can’t replace the Big Three. Nobodies even sure if a bailout for the big three would work anyway so maybe the gov. steps in and helps a replacement company. Bottom line people will always still want new cars…Somebody will make them…Maybe just fewer more efficient companies making them. All the tertiary jobs, (car salesmen, tire factory workers, etc.) still
will have products to sell it’s not like if GM folds cars will suddenly become obsolete.
As for the workers whose jobs are in jeopardy, or have already been lost. Government infrastructure programs will have to be initiated if we are going to convert from Gasoline driven to Electric or Hydrogen powered vehicles. Nobody likes a change in vocation, but there would be jobs there and it needs to be done.
Anyway I’m rambling, but the basic concept that the gov. could and Should get something for there money here, a new fleet of cars is a place to start.