Axelrod: No Auto Bailout Until Execs Come Up With Plan

Surely I can't be the only person watching this morning who is waiting to hear that the CEOs of the Big Three are grounding the jets and refusing to take their bonus this year; as a matter of fact, they should return their bonuses from 07. I'll bet they could afford it with the perks they've had over the years. CEOs who fail to lead don't get bonuses, they get fired. Meantime the business that my husband and I started three years ago is suffering from a consumer lack of confidence in the market because all eyes and monies are headed in the direction of the Big Banks and the auto business instead of helping small business, which supports more families than the banks and auto business combined.

next, our elected officials (senator's congressmen and their stafff's) should fly commercial as well.

I went shopping in part of my town, Rochester, Michigan where in the shadows of the assembly plants the workers were deciding what to forgo on a Thanksgiving dinner purchase pushing the sparsely filled carts. Later, I went to a gourmet high-end market to pick up my son who works there. It was surreal. Shoppers were happily filling their carts, almost giddy with excitement for the upcoming holidays. These shoppers are the corporate workers, just like the CEO's, they just don't get it. Is there really a "doom and gloom" climate here? Get rid of the corporate federal tax-write off concerning CEO/executive incentives/pay and maybe the taxpayer will actually gain a dollar (million or so?) and maybe it will force the corporate investors to rethink their way of CEO accountibility and really make a product the consumer wants. QUALITY!

Calling Sarah Palin! We have jets for you to sale!

i heard that auto workers were making over 70 bucks an hour that does not include benefits medical etc?

ceo's are make millions, the whole pay structure needs to be restructured starting with ceo pay and on down the line.

There won't be any small businesses if the "Big Two" fail. If one goes, they ALL go and that includes the transplants here who have sucked up billions in taxpayer money as state governments have bribed them to settle in their states. All panel members make some excellent points, but isn't this a LOAN rather than a gift? You can try using some loose logic that says this will be a gift if they eventually fail, but the reality is, if it comes down to failure, we might as well kiss ourselves goodbye. If the government is going to mandate safety, pollution and fuel economy standards, some of which are good and some of which are not, then the government should do what it takes to support these companies in achieving those goals. Why did GM destroy all those electric vehicles... no one wanted them. There HAS to be affordability for the masses. Maybe the government should be doing the R&D on alternative fuels and the required supporting infrastructure and give it free to all the AMERICAN automakers. In closing, it would do well for people who are commenting on, or voting on this loan package to have at least a basic understanding of both business principles and the specifics of the US auto industry.

AUTO WORKERS BAILOUT.........I am so torn on this matter. My heart says they should get the money and help the workers keep their jobs and benefits, my gut says even if they get the money the workers will still be let go. After all look at the pattern, AIG got money and went on not 1 but 2 vacations (they chose to call them meetings), $710 billion to help homeowners, no mortgages saved yet, why should anyone in their right mind believe jobs will be saved if the Auto Industry gets money. Ironically the push for AW bailout is so close to when Xmas bonuses are given. Big question, who will get them, CEO's or lower level workers? Think about it!.......THE TAXPAYERS ARE NOT THE SALVATION SANTA!!.................................These are the guys who right up until September 1, 2008 said the economy is fundamentally sound. While there is enough blame on both sides I think we have all come to realize the far right has been far worse on regulation. We are dealing with a bunch of despicable, deplorable liars and thieves.

All CEO must step down without bonus or severance. You can't keep a leadership that doesn't lead.

The union must go and wages/benefits must be cut back. You can't make these same wages and sell to an American public that can't afford your product.

We need to see the new budget for the car makers clearly set forth with all the perks gone.

If you can't do it, file for bankruptcy and get out of the big picture.

It was reported that GM will sell two of its five personal jets. That still leaves three. Maybe my math capabilities are better than the CEO of GM. Maybe I should apply for his job.

Pete, the government is telling the auto industries to come up with a plan and THEN they'll get the government's money (our money - yours, too)to help with it! I don't blame government officials one bit for this, and that's basically what we're all saying here.

Picture the image of the auto execs arriving in their private jets, begging for huge cash subsidies from congress.

I suppose $millions in annual income tends to insulate one from ordinary notions of expense.

I believe one of the major problems we face as a society is the concentrated power vested in the executive officers of large corporations. The outlandish compensation packages they receive is an indication of this power. The current financial and economic problems we face is a result of the abuse of that power.

Give power back to the share-holders and employees. The laws governing corporate behavior need revision. These massive institutions can not be granted the same rights as individuals. They should be treated as the quasi-governmental bodies that they are.

The UAW wished they making $70/hr! That time has long since been gone (usually that pay was overtime and families not having to spend with each other). The UAW has made many concessions that has slowly brought the worker into a new class: the working-poor receiving $14/hr pay scale if they are lucky to get there.
While I drive through their neighborhoods you would think there is not an economic crisis with all the new mega-mansion building and renovations being done.

When it was announced on a local newscast that 3 of the 5 jets were being placed "inactive" for the time being as part of the new proposal. The news anchor scouffed and stated that they were planning on doing that previously anyway.
Where is Sarah Palin when you need her?!

I agree with the US government partnering to R&D energy efficiency. But, If "we the people" are going to LOAN the carmakers the money we need to have a reasonable chance at being repaid at a reasonable interest rate.

These CEO's already showed how really out of touch and stupid they are by showing up with their high class and attitiude jets. That is just a small portion of what's wrong in those companies

pete regarding your comment;... do well for people who are commenting on, or voting on this loan package to have at least a basic understanding of both business principles and the specifics of the US auto industry...

we have the ivy league educated in charge of our economy and look at the mess we are in. much of what has happened to our economy requires the understanding of one principle, which is GREED.

Dena Arellanes thank you for the information. i did not realize the pay scale was so low.

You know those three just really need to go.

Hasn't there been an Ivy Leaguer (of sorts) in office for 8 years now?

Now we get an Ivy Leaguer with intellectual capability that will stay out of the "saddle" and bring this country back to a thriving economy with "respect."

I am a registered Democrat that voted for Obama, and yet I found myself agreeing 100% with the Senator from Alabama, that the best opportunity to save the automakers was in using Chapter 11 to reorganize. They need new leadership. A fish stinks from its head. I wish for Lee Iocacca.

The big automakers are failing because the stucture of the economy is changing. Other giants, such as ATT, GE, Chrysler, faced this crisis earlier and survived. I would like to see more coverage of what these guys did.

I really like Kuttner, professionalize human services!!!! Technology is changing, we must change our economic structure with it. By giving more money to the states so that they can expand rather than their current contraction, we are giving money to people that WILL spend -- on food and necessities. Giving money to the middle class, they will NOT spend.

Our Greatest Smartest Changest Leader voted for $160 billion bailout of AIG, $30 billion for Morgan Chase, $300 billion for Mortgage companies, $700 billion for Wall Street bankers. Yet, he refuses to spend a merely $25 billion to save more than 4 million jobs of blue collar workers.

Surely the CEOs of the big 3 fly private jets and make millions; what our Smartest Leader Pres 0bama does not tell you is that the CEOs of AIG, Morgan Chase, FannieMae, Banks also fly private jets and make even more millions of dollars. That's what a phony deceptionist is about.

$1.5 trillion for the super rich our Greatest Leader is so happy to give, but $25 million to save Middle Class, hard labor jobs of America, our Smartest Leader can tell you many phony excuses that he can rationalize to refuse help.

Change We Can Believe In!

Hope can help you feel-good, even you lose your jobs.

I have heard that Toyota sold two million cars in Japan last year? And isn't it true that American car companies are not allowed to build factories there by Japanese law? And isn't it also true that to export cars to Japan one has to go through about six months of government red tape and inspections per car? And isn't it true that the legacy costs to Japanese manufacturers in Japan are as great or greater than in the U. S. because they have what is called lifetime employment? Is it not true that Toyota and GM have parity in total worldwide production numbers? And because Toyota was able to sell two million cars in it's own closed market, would not that imply that GM sells two million more vehicles everywhere else? Does anyone know what percentage of vehicles sold on Japanese soil are foreign made? Do Japanese automobile manufacturers enjoy monopoly power in Japan? Would it not be true that by giving those companies monopoly power the Japanese government is subsidizing those companies at the expense of the Japanese consumer? And since Japan is subsidizing their auto industry does that not put American domestic brands at a competitive disadvantage (since one half or more of all Japanese branded cars sold in the U.S.A. are made in Japan)? Is it worth it to us to forever cede our manufacturing base to Japan (and others) for a brief downturn, easily bridged, with a relatively small amount of capital? Is it not true that the American domestic brands pay billions in taxes per year? Would it not be unwise to give up these taxes forever in the future, for lack of financing now?

Wasn't it Congress that required back seat car seats for children under twelve? A family of three needs a SUV.

If the plan that GM comes up with does not including throwing the UAW out then no taxpayer money should be given to them. The mangement at GM is reponsible for allowing the unions to destroy their business and they should also be shown the door for being poor stewards of their company.

When GM pays $71/hr on average and Toyota only pays $47 there is a real issue with inappropriate concessions to the unions. GM will never recover until the labor cost imbalance is addressed. In the mean time, companies like Toyota and Hyundai will continue to make higher quality cars in Mississippi, Alabama, and my own state of Texas using American workers. These right-to-work states offer a better business environment for GM as they emerge from bankruptcy, they should seriously consider relocating as part of this restructuring.