Auto Bailout-What Do You Think

By Clem
(2 votes) (report abuse)
This is really a tricky one for Bush and Obama. The big three got themselves into this mess by going all out with SUV's and abandoning the small car market. Then there is the issue of health care and wages that of course make up a large part of the cost of a vehicle. If the manufacturers really wanted to get aggressive they could have the workers take 5-10% pay cuts across the board and change the health insurance to high deductable. A plan that would cover most of prescriptions but set deductables at $1500 per year or higher would keep people out of emergency rooms and doctors offices unless they were really hurting. I know this for a fact. (I'm a conservative-lol)

The auto industry could be hurting for awhile anyways. Cars have gotten so reliable that its not unusual for a car to last for 15 years. Remember the good old days when maybe your neighbor got a new car ever one or two years? That was a long time ago. Cle Elum is kind of funny because I bet not more than 20 new cars/trucks are bought here in a years time.
byMr_Junky November 13, 2008 (3 votes) (report abuse) (reply)
It upsets me that they need a bailout, but at the same time everything else is getting bailed out so it only seems fair.

Clem, interesting point on the heavy production of SUVs over small cars.

I was watching a documentary called "Who Killed the Electric Car?" ( http://www.imdb.com/title/tt0489037/ ) It's a tad bit of a hippie brainwash, but they make a point GM had a working hybrid at the turn of the century and when the Bush administration took over, they cut grants and GM could no longer fund the project. While GM was making their hybrid, Toyota and Honda started to panic and designed their own hybrid. I think we know how that ended...
Bailout but at a price. byThousand Sun November 13, 2008 (2 votes) (report abuse) (reply)
I'm all for bailing out the auto manufactures. The bailout should be conditional on the big three doubling fuel efficiency in all their vehicles within a very short time span and lowering harmful emissions. No more OPEC ass kissing.
General Motors 1300 cc engine byClem November 13, 2008 (2 votes) (report abuse) (reply)
GM developed a high horsepower 1300 CC engine but I am guessing they sat on it thinking there was no interest in a small car that got 45-50mpg. The engine interestingly enough is supposed to go into production soon in North America and will be used in the new Chevrolet Cruz. I am guessing that will be something like the Mazda 3 or Honda Civic but slightly smaller. The mpg should be impressive though. Heres a link.

http://www.reuters.com/article/pressRelease/idUS167183+25-Sep-2008+PRN20080925
RE: General Motors 1300 cc engine byMr_Junky November 13, 2008 (2 votes) (report abuse)
What is painful is looking at all the small diesel cars in Europe that "can't be brought to the US because the production costs and importing is too high"

GM keeps bringing over Opel cars as a Saturn, but instead of getting 50mpg, we get a gas motor that gets 30mpg.
Auto Bailout byCleElum1 November 13, 2008 (1 votes) (report abuse) (reply)
I'd rather see the auto sector bailed out than the financial institutes(govt. could have bought the bad debt. and offered no-interest/re-structured loans to those about to lose their homes). I don't feel that we should give up one of the last largest manufacturing segments of our country and the repercussions of the trickle down lay offs would be felt everywhere. We just hit the 1983 level for unemployment.

Here's tidbit from Reuter's:
It seems like only yesterday that U.S. Treasury Secretary Henry Paulson was up on Capitol Hill, asking Congress for a mere $700 billion to buy bad assets that were clogging up lending. The so-called Troubled Asset Relief Program isn’t buying troubled assets, but the TARP acronym lives on.

Until now. Thanks to Stephen Stanley, chief economist at RBS Greenwich Capital,

“Given that TARP is no longer an appropriate acronym, I propose to start a contest to rename the program,” Stanley said. “My submission is BEAST. Bail out Everyone And Sink the Taxpayer. Unfortunately, there are no prizes in this contest, but feel free to play.”
This guy really makes me angry byThousand Sun November 18, 2008 (1 votes) (report abuse) (reply)
http://www.cnn.com/2008/US/11/18/mulally.automaker.bailout/i

Does anyone else think Alan Mulally and the rest of the US automakers are full of crap?
RE: This guy really makes me angry byClem November 21, 2008 (1 votes) (report abuse)
I kind of like Mulally and maybe Ford will survive with him at the helm. I dont think the industry is moving fast enough though. Why does Ford need an F-250? Put a V-6 diesel in the F-150 and build up the suspension and run one line and shut down the F-250. Ford still owns part of Mazda. I dont see why they cant build the Mazda 3 here instead of Japan and also build the Mazda 5 van here. The van can carry six people and I think gets 30 mpg.

I dont think it would be that hard to slash health care costs and cut salaries across the board if thats what it takes from the big three to survive. Chrysler I think is going to have a tough time. They have the Jeep Brand and the Minivans but thats about it. I dont think the Dodge truck will survive. The Silverado and F-150 are enough.
Senate cancels vote on doomed auto bailout byNWResident November 20, 2008 (2 votes) (report abuse) (reply)
Article dated Nov 19, 2008

http://news.yahoo.com/s/ap/20081119/ap_on_go_co/auto_bailout
Auto Bailout byCleElum1 November 20, 2008 (1 votes) (report abuse) (reply)
The minute gas prices came down everywhere I looked I see tons of pickup's and suv's. Winters coming and people are gearing up for it including getting their 4x4's ready. Fords F150's the #1 selling truck.If the only thing that I know of that kept people from driving these vehicles all spring and summer was the price of gas, then, I'd the auto industry gave people what they wanted. It was the price of gas and "it's the economy, stupid" (as the saying goes)that put the auto makers in the poor house. As such, if we can't and don't bail them out, then, IMO know one, anywhere should be bailed out.
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