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Who Better to Sell The Auto Bailout Than A Car Salesman?
November 18, 2008 1:23 PM
ABC's Z. Byron Wolf from Washington:
CEOs for the big three auto makers are going to be up on Capitol Hill later today under the klieg lights before the Senate Banking asking Congress for $25 billion in loans to get them through the tough economic times.
But they aren't the only ones lobbying Congress on behalf of the auto industry today. This morning, in the hallway of the Russell Senate Office building, in between meetings with Senate staffers, we found Chuck Eddy, who along with his father owns a Chrysler dealership in Youngstown, Ohio.
And who better to sell the idea of a big new loan than a fleet of car salesmen, dispatched with the help of Chrysler in Detroit.
Eddy's Chrysler and Jeep dealership employs 56 people in Youngstown, and "that doesn't count the people who clean the place, who cut the grass," he said. A moment later he pointed at our camera and pointed out that on Capitol Hill he has seen reporters running around and "I'm looking at reporters with notepads and pencils and guys with cameras, what happens to your company if I cut my advertising," he asked.
"If we can get a bridge loan - it's not a bailout, it's a bridge loan," he said. "This is not a Detroit issue, it’s a national, worldwide issue…you got 56 employees, depend on a paycheck for their living, their health care."
But if Eddy can't sell Congress on the bailout (he would prefer to call it a "rescue"), he might try to sell them a Chrysler off his lot instead.
Eddy said its unfair when he hears people say American car companies have made bad decisions on which cars they build.
"To say they are building bad cars is not fair. They are building what the consumer wants, and the last few years, they loved the big sport utilities, the small cars, the whole range of cars. The quality is good, warranties have never been better," he said, "It's just the credit crunch has made his supply swell."
"I was having a good year until June hit," he said.
Meet Chuck in person on World News tonight.
November 18, 2008 in Economy | Permalink | Share | User Comments (9)
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Bail them out! if we don't 1.6 million people will be out of jobs and we will be in a deep depression. If we can give CEO and top workers bonuses out of our $70 Billion dollar package then we can bail out the car companies. And NO, bankruptcy will not work.
Posted by: becky (the real one) | Nov 18, 2008 1:31:46 PM
The bailout is short-term. How will long will the company survive with the OVERPRICED cars they are selling. My family household cannot afford to buy a Made in America $30K car to drive around. The 3 big need to CONSOLIDATE and RETOOL to produce HYBRID(s). If bankruptcy will ease the transition, then they have to swallow the bitter pill. The company is too sick and the life support machines are not functioning, some one has to pull the plug! We need a new manufacturing revolution in this 21st century at an affordable price!
Posted by: :@ | Nov 18, 2008 2:24:17 PM
No financial bailout of the auto industry will work as long as there are massive layoffs in many industries, including the auro makers. People who are worried whether they will have a paycheck next month or who are missing one this month are not going to be buying cars, not even fuel-efficient ones!
Congress must address the jobs issue up front and soon!
Posted by: Ian MacFarlane | Nov 18, 2008 2:38:16 PM
No bailout. They are ripping consumers off with these expensive cars and huge interest rates on car loans. Car dealers/ Auto companies have been ripping consumers off and now they are paying the price. They have the money....all of our money! They are trying to take advantage of the bailout system. No, No. Instead have them cut the interest rates on car loans for consumers so consumers can keep their cars. It will also be an incentive for new consumers to buy cars because of the low, low interest. Just think, half of my car payment go to just interest alone. This is CRAZY! This was coming, they were getting out of hand with the interest rates on car loans and were never regulated. There should be a straight across the board fair and just interest rate. Just enough for a profit. They are part of the reason we are in this financial mess. NO WAY, NO HOW.
Posted by: Tanya | Nov 18, 2008 3:22:28 PM
No bailout. They helped cause this financial meltdown, let them fix it themselves. They are charging huge interest rates on car loans. They know how to fix it.... cheaper cars and super low interest!! No Bailout
Posted by: Loretta | Nov 18, 2008 3:27:01 PM
Fire the top execs.
Do not give them a dime when they leave.
They failed miserably. This is not the companies' money; it's the taxpayers' money.
Go back to the drawing board, and work towards becoming competitive and innovative once again.
Scale back to the bone - from the top on down.
THEN - Pay the money back to the taxpayers.
All of this needs to be monitored from start to finish.
Simple discipline is needed.
I hope there are watchdogs 'out there'.
The public needs to be updated every three months.
Posted by: discipline is needed | Nov 18, 2008 6:36:44 PM
I hope the congress doe not bail out the US auto industry. It is time for them to pay for their mis-deeds. Go with me back to the 1950's when America thrived with industry and all things were filled with excitement for the future. The "Big Three" auto makers squeezed out the smaller indepentant auto makers and such old American brand names such as Studebaker, Nash, Hudson Kaiser/Frazer, Packard, Willys and others were forced out of business because of the greed of the Big Three. Now the tide has turned and foreign auto makers are putting the squeeze on them. It is time for them to get their just dues. What you sow, you will reap, says the Good Book. It would serve them right to loose out—notwithstanding the hurt it would put on innocent workers who may be affected. Remember, they put the hurt on innocent auto workers in the 50's and no one seems to care about that!.
If this is what God wonts, so be it!
Posted by: Old Wisdom | Nov 19, 2008 12:10:49 PM
Why is it that todays way of thinking is that government/taxpayers should bail out every "failing" big business? The pawns in the whole bag of events are the innocent workers who are used as bait for the bailout. The CEO's and other top dogs seem to go on living their luxerious lifestlyes on all the profits from their failing businesses and in the meantime, workers and plants are being laid off/shut down to support the CEO's greedy habits of living. To bail out another company is just another invitation that no one needs to examine how a business is being run and that no boundaries need to be set on what is really considered over the top spending and/or living expenses for an executive at the expence of the workers. Balance is needed not... supplying a "fix" to uncontrolled habits.
Posted by: Stop and Think once | Nov 19, 2008 12:36:24 PM
I'll buy a Ford or GM again when they
1. Return $1000 of the purchase price every time I have to bring it in for unscheduled maintenance.
2. Refund $5000 when I get notified of another safety recall that covers many years models and warns me of the risk of my car, garage and attached home burning down in the middle of the night, and it takes them nearly a year to take care of the specific problem in my vehicle.
Dear Ford. I tried you. I'm done with you.
Posted by: Livia | Nov 20, 2008 12:06:31 AM
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