Current Events > Economics

Major auto execs return to Hill to ask for aid

(1/10) > >>

thundley4:

--- Quote ---WASHINGTON - The leaders of the top three U.S. automakers’ return to Congress Wednesday, appearing before a House committee to make the same plea for financial aid they made Tuesday to the Senate Banking Committee.

Appearing before a Senate committee Tuesday afternoon, the top executives of General Motors, Ford and Chrysler asked for a $25 billion “bridge loan” to avert layoffs and plant closings.

The plea met with some opposition. Sen. Richard Shelby, the senior Republican on the Banking Committee, said Wednesday he doesn’t believe there will be a turnaround in the troubled U.S. auto industry until its top management is ousted and the manufacturing model sacked.


“I don’t think they have immediate plans to change their model, which is a model of failure,” Shelby said. “I think a lot of it will be life support. I believe their best option would be some type of Chapter 11 bankruptcy ... These leaders have been failures and they need to go.”

Rep. Barney Frank, D-Mass., disagreed with that, saying choosing the bankruptcy option would like mean abrogation of labor contracts. “We already have too much union busting,” said Frank, appearing on CBS’s “The Early Show” with Shelby.
--- End quote ---
Link

Hey Barney, it's those contracts that are a big problem for the car makers. Many were made in better times.

Wineslob:
The Big Gay One is off the mark. However I do believe the bailout is needed. Think about this, 1.5 to 2 million jobs would/could be lost. Worst case, 3 million. What do you think thats going to do to the economy?

Uhhuh35:
I think they should get a bailout. That way they can continue to make the same cars that no one is buying.





 :confused:

Eupher:
As I recall from a college class here and there, Chapter 11 bankruptcy doesn't spell the death knell for the company. It's an opportunity to compel the company to reorganize.

Sorta like cleaning out the cobwebs from under the bed.

Sounds to me like Rep. Fudgepacker refuses to acknowledge that there are dust bunnies on the assembly lines, foundries, and car dealerships and that they should be eradicated once every 50-60 years or so.

But he, like most people in the Rust Belt, still have this perverted notion that the United Auto Workers union is still needed the same way today like it was in 1935.

Where's Jimmy Hoffa these days?  :popcorn:

Chris_:
I don't remember anyone talking bailout in the 70's when the gas crisis hit -- somehow they survived.

Sink or swim, just like real companies do.

Navigation

[0] Message Index

[#] Next page