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Auto Bailout: From the Ashes?

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November 20, 2008 12:42 PM

ABC News' Jonathan Karl Reports: A deal has been struck in the Senate on a compromise bailout plan for the Big Three automakers.

However, it is still unclear whether this will pass the Senate, and, if it does, whether it will then pass the House.

The agreement was hammered out by Republican Senators Kit Bond and George Voinovich, who were working with Democrat Carl Levin.

An auto industry source said the deal would use money from the $25 billion Congress made available to the automakers in October for fuel efficient vehicle programs. Speaker Nancy Pelosi has adamantly opposed using this money for anything but its intended purpose. To attempt to please Pelosi, under this deal, the Congress would come back in January and replenish the fund for fuel efficient vehicles.

This deal could potentially put Pelosi in the difficult position of either caving in or being responsible for killing the bailout. She is scheduled to talk to Senate Majority Leader Harry Reid shortly.

November 20, 2008 | Permalink | User Comments (62)

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The senators that are wanting to push this bailout, must owe the big 3 and UAW some mighty big favors for all of the campaign funding or something. They are determined to give these big old dinosaurs our money. Enough already!!!

Posted by: bo | Nov 20, 2008 1:03:48 PM

So, GM is in the process of building a plant in Russia to the tune of $300 million dollars to build more gas guzzling SUV's. So, let's "bail them out" so they can send all that money to Russia, along with American jobs. How stupid are we?

Posted by: 9angels22 | Nov 20, 2008 1:06:47 PM

We now see where Nancy and Harry are attempting to pay off the UAW with a nice bail out from the Federal government. Where is all the outrage that same bailout received when it was a Wall St. Firm instead? Where's the left at now? A current U.S. autoworker gets about $140,000 in total compensation while their Japanese counterparts only receive about $96,000. A speaker on CNBC suggested it would be better to let the big 3 re-organize under chapter 11 so that they can break all the poor union contracts they negotiated over the years. An auto industry with 33 percent fewer employees and 33 percent less pay should be pretty competitive. All those folks who get laid off will be okay because St. Obama will be giving them a nice fat tax cut as soon as he can round up enough rich people to tax.

Posted by: Mark | Nov 20, 2008 1:07:42 PM

No! Nonono! Don't do it! Cut the chord to the Big Three Stooges. Let Larry, Moe and Curly go down in flames. They've bankrupted the American auto industry; we should be burning them in effigy, not giving them billions of dollars.

Posted by: seabelly | Nov 20, 2008 1:09:07 PM

Voinovich is looking out for everyone in OH. It's not the car companies so much any of us care about. It's all the retirees who spent 20-30 yrs. & now could have pensions pulled. Then it affects their kids who take on the roll of caring for aging parents w/no income. GM Assembly in Moraine shuts down & so do the parts suppliers, all the restaurants in Moraine that fed the workers, the truckers who hauled the parts, etc. It's more than simply punishing the arrogant auto execs who made stupid decisions, refused to change, and fly around in their private jets.

Posted by: Maple Fan | Nov 20, 2008 1:10:57 PM

Again Congress is looking after big corporations at the expense of taxpayers. It is disgusting. They all have a price tag attached.

Posted by: Agustina | Nov 20, 2008 1:11:35 PM

This will be a bid deal decision for Ms. Pelosi. It will be interesting to see if she proves her mettle for her words. Frankly, if the Big 3 have or will be required to provide a detailed financial analysis of respective company operations and give a clear, concise projection of when government funds will be repaid, I am okay with the bail out. However, the bail out should address onerous union contracts and benefits that have a strangle hold on the industry and exorbitant, outrageous executive salaries and benefits. The days of corporate executive misuse of power and corporate funds should be over, permanently.

Posted by: RohnertPark1 | Nov 20, 2008 1:13:49 PM

The last thing we need to do is bail out the auto industry...until they show restraint and do something to try to help themselves. The UAW, and other unions, have outpriced the American worker. We have them to thank for the high, over-priced vehicles. We have greed to thank and greed's name is the UAW.

When someone who barely graduated high school, a year late at that, earns about 4 times the average college graduate's salary, there is seriously something wrong with the system. That was simply caused by the UAW. I'm all for clean working conditions, good insurance, etc....but why should someone make around $100,000 a year for driving a car off the end of the assembly line? Don't believe me...that's for real....he's related to me.

Posted by: tdt | Nov 20, 2008 1:15:13 PM

One way or another they are going to get a bailout(Iam not for it) they better go ahead and give them the 25 billion. The price will go up by the time they add all the sweeteners on to buy the votes they need to pass it. Don't forget what happened to the 700 billion that ended up at 850 billion to get the votes they need to pass it.

Posted by: Lee S,Benson AZ | Nov 20, 2008 1:18:16 PM

Maple Fan: I don't think they should be bailed out, but I will agree with you....the trickle down affect will be far-reaching and traumatic for many people who don't even work for the auto industry, but their businesses are tied to it in one way or another.

It's happening everywhere, and where I live has not been missed. We have had 3 major employers lay off or shut down in the past 2 months. Since then, beginning this week, smaller manufacturers and businesses are closing down because their main business was from the larger companies that closed or reduced production. Retail businesses are closing nation-wide.

Get ready people...it's gonna be a long ride.

Posted by: tdt | Nov 20, 2008 1:18:23 PM

Well it is apparent that all of you have nothing to do with the auto companies. I work for a company that does business with them and others. If they file chapter 11 then all the companies that do business with them will suffer greatly. I know one of the big 3 owes us at least $10 million. they historically take as long as possible to pay now everything is on hold.
good luck getting parts for your cars if they go under.

Posted by: scott | Nov 20, 2008 1:18:24 PM

They shouldn't get one red cent of taxpayers' money unless they sell the multi-million dollar jet fleet and lower their salaries. If they won't do it, there are a lot of other competent people out there that will. Enough of robbing the poor to give to the rich.

Posted by: Grammy11 | Nov 20, 2008 1:18:26 PM

I thought the Democrats and Obama vowed they would "Change" Washington D.C. I guess it's the same ol' same ol' rules of paying off those lobbyiest. Let them at least go bankrupt before bailing them out.

Posted by: Toby | Nov 20, 2008 1:18:48 PM

I am one of the little people in the auto industry working to feed my family I dont make much money but I really need my job. Before making a opinion put yourself in my shoes look my child in the eyes and tell him why he can not have dinner. I guarantee it would change your mind.

Posted by: T | Nov 20, 2008 1:20:45 PM

Here we go again and again. More money for fat-cats who don't have any value for Americans. They ship American jobs over seas and then cry to US the American people for help. Go beg Mexico, or Canada, or India or any of the festering third world countries where you have taken American jobs. Maybe they will help. Unfortunately, at the end of the day, no one listens to me or us; whether we vote or not. The only way we are going to see real change is to defend the Constitution ourselves and to eradicate those who pervert our Country’s heritage.

Posted by: David Scoggins | Nov 20, 2008 1:21:29 PM

Bring our JOBS back to the USA!!!!
Then we'll talk bailout!!!!

Posted by: melissa | Nov 20, 2008 1:21:31 PM

If something isn't done about the outrageous pay packages for the UAW as a condition of this bailout then it is nothing more than a welfare payment for the UAW. It is the UAW that is bankrupting the Big 3 by being paid wages and benefits that are over 50% higher than the pay packages at non-union plants in the country. I for one do not want my tax dollars going to subsidize these outrageous union contracts.

Posted by: Agnostic Free Thinker | Nov 20, 2008 1:21:56 PM

I think as part of the deal that some of the corpporate jets should be sold.
Ceo's salaries cut and bonuses taken away. That money would go to help in the bailout. We need to be about helping the people most affected by the failure and not the top level. Why should they and us suffer because of the greed of the few.

Posted by: Carolyn | Nov 20, 2008 1:22:11 PM

as usual follow the money follow the votes. pelosi, reid and obama for that matter have to push for the bail out because they are glued to the unions for cash and votes.if they do this, and they will,this would be more outrageous than anything thats happened on wall street. why? because why should yours and mine tax dollars fund the uaw s pensions? i dont have one. you watch... a bailout will happen...the democratic leadership has to. then what do we have? same ole thang all over again.

Posted by: catman | Nov 20, 2008 1:22:49 PM

If they are bailed out, then it should be on the conditions that the upper-management...CEO, CFO, etc., are fired right from the start. Then, put a competent person in their jobs at about 1/4 the salary. There are a lot of corporate execs out there who are without a job right now because their companies have either shut down or moved over seas. I bet some of them would be willing to take 1/4 salary now...they are learning what it's like to be a middle-class American...put food on the table, heat in the house and shoes on the kids, everything else is extra.

Posted by: tdt | Nov 20, 2008 1:23:42 PM

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