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Chrysler & The Big Three Car Companies Yell Fire. Is Anyone Listening?
December 18, 2008 10:43 AM
It appears to be a high stakes game of chicken. Chrysler last night saying it will close down all its factories for a month ratchets up the pressure. Chrysler and GM are screaming from the factory roofs that this could be the end...that they need a bail out now. Really. The White House has signaled that they will not let the car companies fail. But so far, no rescue announced.
ABC's Congressional reporter Jonathan Karl reports on the reaction to the Chrysler shutdown from Washington:
The move doesn't come as a surprise to the Bush Administration, which has already been looking at Chrysler's books. As one senior official told me, "They are doing what they have to do. People aren't buying the cars."
That said, the White House is clearly moving in the direction of a short-term bailout for both Chrysler and GM. Yesterday, before Chrysler's decision to close down, President Bush said the automakers would need help "relatively soon" and that he is, quote, "thinking it through." What you hear officials say over and over again is that they are not going to give the automakers a blank check. And if Chrysler wants a lifeline, the company is going to need to prove it can cut costs enough to be competitive. Wednesday's announcement may actually help them make that case.
Why is taking so long? White House and Treasury officials say this is very much on the fast track, but they want to do it right. "It's a huge industry and both the problem and the potential solutions are complicated," says one senior official.
The White House won't comment on the timing, but based on what I am hearing, I expect a decision as early as Friday. And everybody involved expects that decision will involve loans that will keep them afloat for the short-term.
December 18, 2008 in Economy, Obama, Barack | Permalink | Share | User Comments (9)
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It really makes no sense to bail out the Unions. This is not an industry bailout, it is for the unions only. They were a worthwhile institution in their inception helping to give a fair wage to workers; but now they have outlived their worth. The reason people are not buying cars because the only people who can afford them are union stewards. Time to put the unions out to pasture.
Posted by: Jim | Dec 18, 2008 12:37:34 PM
Send the Auto companies to the Big Oil companies for the money. After all, the big oil companies have posted record profits each quarter the last few years of amounts in excess of what the automakers are asking. It seems the Bid Oil companies have a vested interest in the survival of the auto makers that are building cars that consume the record profitable fuel. Too simple to work? Exxon, Chevron, et al can make those loans to GM, Chrysler et al and not have the taxpayer pick up the tab.
How about it?
Posted by: BAT3987 | Dec 18, 2008 1:16:33 PM
I'm getting a big kick out of this.
The Democratic voting UAW couldn't get help from the Democratic run Congress so their only hope now lies with the Republican President they didn't support.
L O L
Posted by: Noz | Dec 18, 2008 1:50:41 PM
It needs to be said over & over & over...file for Chap 11...RESTRUCTURE...Eliminate Current Executives....and toos out current labor agreements!
This approach has worked for other companies & industries. It is the only way we end up with a truly viable compant in the end.
Posted by: Mike_C | Dec 18, 2008 2:00:43 PM
Good point, NOZ... that cracks me up too
Posted by: Jim | Dec 18, 2008 2:20:56 PM
It is very funny that the Unions now have to go on bended knee to President Bush.
I can come up with a whole lot of jokes, but it wouldn't be proper.
Posted by: LOL | Dec 18, 2008 4:52:56 PM
That is the trouble. All these big 3 Detroit cars car companies are in that same UAW Union. Unions are what hurts us. We need Automobile companies that are non-union. & that is why people buy cars like Honda Accords & Toyota Camrys. These companies like these two does not go on strike. They don''t go bankrupt. They both make cars that last & they are the first to make cars that save you gas. They may be import. But they have American plants. The Honda plant in Marysville Ohio makes all the Honda Accords (All Ohio Car). We do not need to support a company that has a union. We need non union companies. We need people who care about quality...not money.
Posted by: Joseph | Dec 18, 2008 7:33:05 PM
In the spirit of Christmas, is it typical of "modern" Americans to want to see millions of fellow Americans to suffer loss of jobs, wages, and pensions? Being a member of the UAW for over 40 years, I have never heard one of our members wish a loss of a job, income or pension on another American!
8 trillion dollars on banking industry, no problem; 34 billion for the auto industry, BIG PROBLEM.
If the auto industry goes down, you too, will feel it.
If the foreign auto companies get to the point of having to pay pensions, they will just go back home, laughing at the dumb, naive Americans all the way.
You just might remember that the UAW members are Americans. We carried weapons in foreign lands defending our way of life. We contributed taxes, time and money to our country.
May you and yours have Merry Christmas, Happy Holidays, and bright Prosperous New Year!!
From one American to another!!
Posted by: David :Young | Dec 18, 2008 8:52:13 PM
Washington and the media is not given us the economic "foresight" on this bailout dominoe scenerio.., Who's next? And are their management practices sending setting up lobbyist in Washington DC to hit up the taxpayers?..
Posted by: Hiroader | Dec 19, 2008 3:02:52 AM
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