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The Big Three Meet With Pelosi
November 06, 2008 5:36 PM
ABC News’ Jonathan Karl reports: The CEOs for the Big Three automakers –- General Motors, Ford and Chrysler -- and the head of the United Auto Workers union met with House Speaker Nancy Pelosi and the Democratic leadership this evening. Their message, apparently, was a blunt one: We need help and it can’t wait until next year.
"We need an infusion [of cash] now," a senior auto executive told me today.
The meeting lasted for an hour and twenty minutes but no announcements were made.
Chrysler and GM are both scheduled to announce their earnings tomorrow, and the results are expected to be grim. Analysts have been speculating for months that one of Big Three was at risk of bankruptcy –- now some say it could happen before the end of the year.
Would more loans save them? That’s what the Big Three are asking for: Congress has already approved $25 billion in loans for developing fuel-efficient technology, but the money is tied up in red tape. Detroit wants that money freed up and another $25 billion in flexible credit to stay alive.
It’s a bailout that would be a tough sell in this lame-duck Congress, but the prospects of an automaker bankruptcy may scare lawmakers into action. The Big Three employ 240,000 people and support another 5 million jobs dependent on the auto industry. There are 14,000 dealerships in Congressional districts across the country, all hurting and many on the verge of bankruptcy.
There is precedent for a federal helping hand for the auto industry. In 1979, the federal government’s bailout of Chrysler cost $3.7 billion (when adjusted for inflation). While critics argue that that bailout ultimately weakened the auto industry, supporters point out that Chrysler ultimately repaid the loans with interest at a profit to the U.S. Treasury.
--With reports by ABC News' Dean Norland.
November 6, 2008 | Permalink | User Comments (170)
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Do the taxpayers have to bail out everybody??? This is ridiculous!
Posted by: Danny | Nov 6, 2008 5:56:47 PM
Here's a novel idea? Why don't American car manufacturers build better cars? Maybe they would sell more and not be crying for a bailout. I'm driving a 1998 Toyota Camry that is still running great. Most 1998 American cars are in the junkyard or their owners have spent thousands of dollars on car repairs. When I buy a new car, it will be another Toyota. My last two American cars almost put me in the poorhouse with needed repairs.
Posted by: Kaliwind | Nov 6, 2008 6:03:06 PM
please bail my 20K in credit cards out and my 600k mortgage too! enough, of bailing, put the money towards building new economies! not old ones.....
Posted by: what a old geezer | Nov 6, 2008 6:04:15 PM
ugh. bah.
that is all.
Posted by: bah | Nov 6, 2008 6:05:12 PM
Insanity.
Posted by: Bugg | Nov 6, 2008 6:06:13 PM
Call every congressional representative and senator and pressure them NOT to bail out the auto makers. We're just now beginning to find out that the bank bailout was a scam - banks are using that money to buy other banks not to help grow or sustain businesses. The auto makers and the banks need to sink or swim. That's the way of the world. And it's time to finally admit that it's the unions pulling these companies down and preventing them from succeeding. Doesn't anyone remember in the recession of the 1980s when the auto makers almost failed?? They adapted and survived then.
Posted by: Momma Mellie | Nov 6, 2008 6:06:16 PM
GM, Ford, Chrysler and the Unions have overall made usch horrible product both in design and quality for such a long time. GM's only real product are SUV's, same as Ford, Chrysler has its Minivans.
I say let them buy each other, or let them go out of business.......no one wants their products.
Why would I provide them a loan when they are going down the tubes anyway?
Posted by: Bob | Nov 6, 2008 6:06:29 PM
We need cash now? Sorry we are not a socialist country. Too bad, you made bad choices!
Posted by: concordesf | Nov 6, 2008 6:09:39 PM
The Big Three: I know there are people that would have a problem bailing out the Auto industry and count me with them, unless the Government finely said, I will help but only if you give the consumer a car that gets 250 miles to a gallon with a 20 gallon tank.
That is what is needed to recapitalized the middle class. [see APTIRA] This model would make the price at the pump irrelevant. The way forward is silicon valley with battery technology or the air car [TATA motors India].
Talk with Google's Dan Reicher and its Recharge IT and bio-reactor initiatives.
Thanks
Rick
Posted by: Rick Shipley | Nov 6, 2008 6:12:06 PM
Pelosi is a hore...will sell America down the river to gain favor with the unions. Out of hope in Nevada.
Posted by: rog | Nov 6, 2008 6:13:07 PM
If Big Government is going to be the place we go to when we can't pay our bills, we need a division to help the regular folks because energy rates are going up, food costs are going up, the cost of sending kids to college is going up, the cost of going to the doctor is going up and nobody is offering any solutions for us to cope! We've had to make sacrifices to live within our means - big companies should be forced to do the same.
Posted by: Twilight Zone | Nov 6, 2008 6:13:38 PM
Sorry to point this out but these are YOUR democrats in action. Geez, we don't want to drive these companies/jobs overseas do we?
Posted by: nomomoney | Nov 6, 2008 6:15:55 PM
There's the novel Idea? Buy another Japan car?? You are part of the problem with American Car industry. Chevy and Ford build great cars, Chevy works close with Toyota and Ford with 5 EU companies, so the problem is not build a better car, the problem is the other markets taping into our markets and and the economic crisis, and final the high oil costs. Our gov. needs to force the industry to make higher millage car with the least emissions which is where Japan and China are beating the US.
Posted by: Mel | Nov 6, 2008 6:17:12 PM
Helping to build something tangible makes more sense than pouring money into pure speculation, "the market". Bypass the banks and let the auto industry make direct loans. That will free up credit. I say help all the car manufactures that produce cars in the United States. Not just the Big three. One condition being that only new fuel efficient technologies are eligible for Federal funds.
Posted by: Tim | Nov 6, 2008 6:19:59 PM
These are the same three that have been getting rid of American workers, and getting rid of American Jobs in record numbers. And now they want what?
Return the American jobs you took away. Create more American Jobs. And hire in record numbers American citizen workers. And if any American Citizen is unemployed, you have to hire him/her first before even thinking of hiring anyone else or going anywhere else.
Time to do what other countries do to protect their work force.
Posted by: mere | Nov 6, 2008 6:20:45 PM
For all of John McCain's criticism of Obama for being a "socialist" look at what is going on with the feds buying stakes in financial and insurance firms and looking to rescue 1 or all 3 of the Big (well not so big any more) 3 US auto makers -- all of this has very little to do with anything coming from Obama. The UAW is killing the US auto industry with their high wage and benefit packages for their assembly line workers who probably average 9th grade education level. Look at the UAW wages and benefit packages compared to the foreign auto makers with plants in the US. It's no wonder the Japanese and European auto makers are killing us. The UAW better wise up in a hurry or most of their members will be working at places like Burger King and WalMart.
Posted by: Agnostic Free Thinker | Nov 6, 2008 6:20:46 PM
Save them for America. Let the Wall Street Bankers die instead. Blue-collar Americans out time is now. Lets put big taxes on overpriced foreign cars to pay for it...
Posted by: Jack | Nov 6, 2008 6:21:05 PM
If Big Government is going to be the place we go to when we can't pay our bills, we need a division to help the regular folks because energy rates are going up, food costs are going up, the cost of sending kids to college is going up, the cost of going to the doctor is going up and nobody is offering any solutions for us to cope! We've had to make sacrifices to live within our means - big companies should be forced to do the same.
_____________
Calm thy nerves. O will sets things aright. He said so.
Posted by: hurray for O | Nov 6, 2008 6:22:59 PM
PATHETIC! FOR DECADES all they did was manufacture GAS Guzzling SUVs and 8 cylinder monster trucks... Now they want to bailed out too? Where does it end??? I say Let them Fail...
Posted by: Squierghia74 | Nov 6, 2008 6:23:05 PM
Let them go and put everyone out of work.
Posted by: rwbapgeon | Nov 6, 2008 6:24:42 PM
No bailout for the Big 3 auto makers. Only make them bridge loans that they have to pay back to the feds with interest. As a condition of the loans all of the UAW labor contracts have to be re-negotiated with new wage and benefit levels that are comparable to what the Japancese and European auto makers with plants in the US are paying their workers. As a taxpayer, I am not interested in subsidizing a bunch of overpaid UAW workers.
Posted by: Agnostic Free Thinker | Nov 6, 2008 6:24:58 PM
z
Posted by: steve | Nov 6, 2008 6:26:21 PM
Do NOT bail these wasteful fools out along w/ the banks. My old '77 F-150 is still running strong and I expect it to last me another 30 years since I take good care of it. It may not get the best mileage, but it is a testament to how well they used to build them compared to todays' vehicles. If the big 3 can build a vehicle that is both fuel efficient and long-lasting, then I'll buy another one. Until then, if my truck lets me down, I'm looking to Toyota or maybe Honda for my next purchase. Build a better truck, and we will buy them. However, you cannot have OUR tax dollars to save your overblown butts from the fire!
Posted by: Dave | Nov 6, 2008 6:27:34 PM
I know, let's raise their taxes!
Posted by: nomomoney | Nov 6, 2008 6:28:49 PM
the US auto industry does not deserve any bail out money....
A bloated arrogant management system, building vehicles plagued with recalls
Give me a break.
I'm behind with my house payments.
I think I will ask for an audience with Pelosi.
Posted by: steve | Nov 6, 2008 6:29:50 PM
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