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Additional Details
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Additional Details
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Annie | Do think you the auto industry should have bailout money? |
Am thinking it would be a good chance for Obama's government to loan them money & make it a requirement to produce vehicles with alternative fuels.
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sarge927
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The problem is the government is considering loaning the auto industry billions of dollars with very few (or no) strings attached. Yes, it would be a great idea for Congress to require the Big Three to ramp up production of alternative fuel vehicles, but it probably won't happen.
It's a tough call, really. There are many economists that say the Big Three should be forced into bankruptcy because that would force them to restructure. That would mean cutting the pork out of management and would also force the UAW to give up their fat-cat contracts. The mainstream media focuses on the auto industry's corporate greed but turns a blind eye to a union that bleeds the car companies to the point where it costs $2,000.00 to $3,000.00 more (on average) PER VEHICLE for the Big Three to produce a vehicle than it does for the Japanese companies (who are non-union) to produce a vehicle. Where else can you get a job starting at $18.00 an hour with full benefits without a high school diploma?
P.S.: Don't listen to the poster who said the Japanese are building better cars. Look at the J.D. Power and Consumer's Digest ratings for the past five years and you'll see that GM and Ford are kicking the crap out of almost every Japanese car maker (except Honda) in terms of reliability and initial quality. Did you also know that Toyota recalled more vehicles than the entire Big Three combined in 2007 and again in 2008? The quality/reliability gap has been closed -- the problem is it costs American car makers a lot more to build cars than it costs the Japanese... |
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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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redbeard
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forcing automakers to build certain vehicles is part of the current problem. the vehicles produced have to be market driven, not standards set by the government. that being said the biggest hurdle for the auto makers is getting rid of the unions that have nearly bankrupted them repetitively. until the unions are gone nothing will change, should they get the money? well who knows but they should at least be able to restructure and hire individuals to work for them and get the unions out so they can be competitive. |
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mbrcatz
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Obama's government is going to loan them OUR money, yours and mine, the working guys. The government HAS no money of it's own. It's all YOUR MONEY AND MY MONEY.
Me, I don't own auto makers stock, because I think the business are NOT RUN WELL. So why would I want to give them a collateral-free loan? That would be a STUPID money decision on my part.
So, I do NOT think there should be an auto industry bailout. But I also dont' think there should be ANY bailouts.
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pooppants002
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No. The world would be a better place without crappy American cars.
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PJ
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A loan - to be paid back. Chrysler was able to do it in the 80s. If the auto industry wants bail out money, they need to agree to pay it back, cut the pay of the workers, cut the pay of management, and produce vehicles people want to buy. They build junk. Hondas and Toyotas are better cars than Ford and Chevy build, so, of course people are going to buy those cars. Detroit should have seen this years ago. Hell, I can see the problem and no one is paying me millions every year. Why can't the top dogs earning the big bucks figure this one out? |
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sinisternumberone
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NO, I AM FRONT SEAT TO THE AUTO INDUSTRY IN DETROIT. I WANT TO WATCH THE COMPANY'S CRUMBLE TO THE GROUND JUST SO THE REST OF YOUS SOUTHERN STATES CAN FEEL THE PAIN FROM THE SUPPLIERS GOING BANKRUPT. WE CAN ALL HAVE NO JOBS, I THINK WE WILL ALL BE CLOSER BY THIS. |
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