Congress Reviewing Survival Plans From Big 3

[Chris_]

Congress Reviewing Survival Plans From Big 3

Detroit's Big Three auto executives have ditched their corporate jets for hybrid cars and replaced vague pleas for federal help with detailed requests for as much as $34 billion in their second crack at persuading Congress to throw their struggling companies a lifeline.

Congressional leaders are reviewing three separate survival plans from Chrysler LLC, General Motors Corp. and Ford Motor Co. as they weigh whether to call lawmakers back to Washington for a special session next week to vote on an auto bailout.

In blueprints delivered to Capitol Hill on Tuesday, GM and Chrysler said they needed an immediate infusion of government cash to last until New Year's, and both said they could drag the entire industry down if they fail. Ford is requesting a $9 billion "standby line of credit" that it says it doesn't expect to use unless one of the other Big Three goes belly up.

But Chrysler said it needed $7 billion by year's end just to keep running. And GM asked for an immediate $4 billion as the first installment of a $12 billion loan, plus a $6 billion line of credit it might need if economic conditions worsen. The two painted the direst portraits to date -- including the prospects of shuttered factories and massive job losses -- of what could happen if Congress doesn't quickly step in.

Democratic leaders voiced concern and a desire to do something to avert an automaker collapse, but they made no commitments about helping an industry that's made few friends lately on Capitol Hill.

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I have the solution.  Let Uncle Sugar give every taxpayer a voucher for a new car from one of the big 3 automakers.  That puts them back to work.  Those workers get their salaries, which pumps money back into the economy...and they pay taxes on it....and we acutally get something for our "donation" of tax dollars to the big 3.

 

[Eupher]

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I have the solution.  Let Uncle Sugar give every taxpayer a voucher for a new car from one of the big 3 automakers.  That puts them back to work.  Those workers get their salaries, which pumps money back into the economy...and they pay taxes on it....and we acutally get something for our "donation" of tax dollars to the big 3.

 

I like the idea, except it won't work for me.

Having been born in Detroit and raised in the suburbs, I will find every excuse manageable to keep from owning an American-designed car.

I fully realize that Japan has several plants here in the U.S. And they actually build pretty decent cars. But it'll be a cold day in hell before I own a GM, Ford, or especially, a Chrysler product.

[Chris_]

I like the idea, except it won't work for me.

Having been born in Detroit and raised in the suburbs, I will find every excuse manageable to keep from owning an American-designed car.

I fully realize that Japan has several plants here in the U.S. And they actually build pretty decent cars. But it'll be a cold day in hell before I own a GM, Ford, or especially, a Chrysler product.

I never forgave Chrysler for putting hydraulic lifters in their 318 engines.  Damn tappets would rattle all the time and you couldn't adjust them like with the Chevy short block.

[Chris_]

I like the idea, except it won't work for me.

Having been born in Detroit and raised in the suburbs, I will find every excuse manageable to keep from owning an American-designed car.

I fully realize that Japan has several plants here in the U.S. And they actually build pretty decent cars. But it'll be a cold day in hell before I own a GM, Ford, or especially, a Chrysler product.

I'll never own another GM product.  Every one I have had was a piece of  .  I've had good luck with Fords (First On Race Day  ), and Chrysler.

[Baruch Menachem]

I like my Saturn...

But really, the market has spoken.  They sell over priced low quality merchandise which people by in large don't want.

Chapter 11 is the best route for the lot of them.   Chapter 13 will have to do for Chrysler.

[thundley4]

I like my Saturn...

But really, the market has spoken.  They sell over priced low quality merchandise which people by in large don't want.

Chapter 11 is the best route for the lot of them.   Chapter 13 will have to do for Chrysler.

We have a 2002 Saturn with 43K miles and have had no problem with it. I had read that the Saturn brand is one that GM may consider getting rid of under their restructuring plan.

[Baruch Menachem]

I see no point in keeping these people in business.  Especially given the no show union contracts they have.

Chapter 11 and payment only for hours actually worked is the only way to go.

I dont see the point in any more bailouts.   Every time it is tried, the markets go further south.


Full disclosure here... I work for a mega big bank that got bailout money.   They didnt ask, but they got anyway.   I didnt like the bank bailouts either, as my bank really didnt need it.


Long and short of it is, right now the biggest downward push on stock prices and the economy is the government bailouts.  They actually say enough already, we might see the end of this disaster.

[Chris]

We have a 2002 Saturn with 43K miles and have had no problem with it.

I'm trying to get my grubby little hands on a 3-series BMW.