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Boatin' in VA! | BAILOUT OF THE AUTO INDUSTRY? |
First a little information from today's news....
"WASHINGTON – Detroit's automakers, making a second bid for $25 billion in funding, are presenting Congress with plans Tuesday to restructure their ailing companies and provide assurances that the funding will help them survive and thrive.
General Motors Corp., Ford Motor Co., and Chrysler LLC would refinance their companies' debt, cut executive pay, seek concessions from workers and find other ways of reviving their staggering companies."
Now the question...should our government offer up the bailout money to the big 3 or should they let them go however the market takes them?
Additional Details
Added note: granted, it's a loan but it is coming from the bailout money. A loan is to be repaid but will they be able to do so?
Some great responses so far and let's see what others might have to say too. |
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Tom Z
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If you are not paying attention you might think that only american car companies are experiencing difficulties but the fact is car sales have collapsed in the past year for the entire industry not just in the USA but globally.
Vehicle sales are tracking at such a low level right now that most or all auto makers are losing money in North America. Globally, Toyota Motor Corp., Chinese car makers and even Europe's normally recession-proof luxury auto makers are struggling to stanch losses.
For example Toyota Motor Corp. sales are expected to drop 24%, with Honda Motor Co. sales down 21% and Nissan Motor Co. sliding 29% in November.
In October, U.S. auto sales were running at an annualized rate of about 11 million vehicles a year, well below the level of 16 million the industry considers healthy.
The industry is selling 5 million fewer cars because of the sudden surge in gas prices, the credit crunch and the faltering economy (not many people feel secure buying a new car right now).
Take another look at what Detroit has done. They have introduced new fuel efficient vehicles such as hybrids, renegotiated labor contracts and made quality improvements that rival or exceed foreign manufacturer's products.
Does the leadership need to do more? Yes, but I don't think America should abandon its manufacturing base.
I can't help but think that some of the people that say let the big three go down are the same people who cry about the fact that the USA exports all of its manufacturing jobs to foreign countries. Doh! |
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Carman Nguyen
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Let them die and then resurrect them,leaner,more competitive. |
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Sunnny
 |
Yes, they should loan them money to get going again. Remember that years ago, Chrysler was given a loan and they repaid it. Although it doesn't seem like a "good solution" it is probably the best option. To say "let 'em die" is shortsighted because of the impact on other businesses. If the auto industry goes bankrupt, many other businesses will follow - suppliers, dealers and more. The auto industry affects more than just Detroit and Michigan. If many people are laid off, what's that going to do to the economy? |
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Royal Scam
 |
The Government should not bail out the auto companies by giving them money. However, the Government could help the auto companies by relaxing some of the regulations they've imposed on them that make it extremely expensive to produce and sell cars.
For example, Corporate Average Fuel Economy standards should be lowered, not raised. Fuel economy would go up anyway because that's what the market demands, and it would lift a burden on the companies.
Also, air quality regulations prevent the production of diesel powered cars, even though the rest of the world runs on diesel.
Then there are the safety regulations, etc..
Regulations are why it takes years for an American company to bring a car to America that they've already been selling in Europe for years.
But ultimately, the car companies just need to make better cars too. |
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Starlight
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The government never should have made the first bailouts, and they *** sure don't need to bailout automakers. The Big 3 are in trouble because of their own greed and stupidity. |
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Bub
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First, it isn't a bailout, but a loan.
Second, with the possible loss of wages, taxes, pensions, healthcare, of course the gov. should make the loan. It is a no brainer to any thinking American. The money is a drop in the bucket compared to the losses that would be incurred by the American public if any of the Big 3 fail.
Thirdly, in the past the gov has made money when they have made loans.
The money given to the banks has not shown to have been used to help our economy much if any. This "loan" would definitely help our economy and right now.
Peace. |
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