Senate negotiations on auto bailout break down

[Miss Mia]

Senate negotiations on auto bailout break down

News of a deal gave way to impasse; sticking point was union wage cuts

WASHINGTON - A $14 billion emergency bailout for U.S. automakers collapsed in the Senate Thursday night after the United Auto Workers refused to accede to Republican demands for swift wage cuts.

Senate Majority Leader Harry Reid said he was "terribly disappointed" about the demise of an emerging bipartisan deal to rescue Detroit's Big Three.

He spoke shortly after Republicans left a closed-door meeting where they balked at giving the automakers federal aid unless their powerful union agreed to slash wages next year to bring them into line with those of Japanese carmakers.

Republican Sen. George V. Voinovich of Ohio, a strong bailout supporter, said the UAW was willing to make the cuts — but not until 2011.

Reid was working to set a swift test vote on the measure Thursday night, but it was just a formality. The bill was virtually certain to fail to reach the 60-vote threshold it would need to clear to advance.

-snip-

[rich_t]

Republican Sen. George V. Voinovich of Ohio, a strong bailout supporter, said the UAW was willing to make the cuts — but not until 2011.

Voinovich is a RINO and always has been IMO.  I see the UAW still want's to keep pulling the strings in Detroit.

I'm glad the Senate said NO.

[Crazy Horse]

 

Well I guess it's obvious how I feel

The one thing I like is this

Reid says the issue won’t be taken up again until next session.

[rich_t]

"It's disappointing that Congress failed to act tonight," a White House statement said.

Congress did act tonight.  The Senate said no!

[Duke Nukum]

This is a switch but I am glad for it.  Usually it is the Senate doing the dumb stuff and the House Republicans say no.  I guess it's just a sign of the times.

[Crazy Horse]

Congress did act tonight.  The Senate said no!

No shit.......................WTF is wrong with em......................the dumbass bailout grant failed not the Senate

[rich_t]

All the UAW has to do is hold on for about another 6 weeks then the new regime will give them everything they want.

 

[Chris_]

All the UAW has to do is hold on for about another 6 weeks then the new regime will give them everything they want.

 :loser:

God willing, they won't hang that long.

It is time for a serious cutting -- and let the chips fall where they may

[Miss Mia]

White House may tap Wall Street fund for autos
Administration says could use $700 billion fund to help ailing automakers

WASHINGTON - The White House said Friday it is willing to consider using some of the $700 billion Wall Street bailout fund to help the U.S. auto industry.

The news comes the day after a bailout-weary Congress killed a $14 billion package to aid struggling U.S. automakers. A partisan dispute Thursday night over union wage cuts derailed a last-ditch effort to revive the emergency aid before year’s end.

Republicans, breaking sharply with President George W. Bush as his term draws to a close, refused to back federal aid for Detroit’s beleaguered Big Three without a guarantee that the United Auto Workers would agree by the end of next year to wage cuts to bring their pay into line with U.S. plants of Japanese carmakers. The UAW refused to do so before its current contract with the automakers expires in 2011.

The breakdown left the fate of the auto industry — and the 3 million jobs it touches — in limbo at a time of growing economic turmoil. General Motors Corp. and Chrysler LLC have said they could be weeks from collapse. Ford Motor Co. says it does not need federal help now, but its survival is far from certain.

Democratic leaders called on Bush to immediately tap the $700 billion Wall Street bailout fund for emergency aid to the auto industry.

-snip-

[USA4ME]

They need to stay tough on this because any money they get isn't going to be enough.  The Big 3 will keep coming back and keep coming back, more more more.  People are going to eventually get PO'd.  I'll put it this way; if people don't get upset at having to constantly bail them out, then this country deserves to collaspe.

The bailout will happen under the Dems, so let them take the heat for throwing money down a hole.

.

[Toastedturningtidelegs]

The bailout will happen under the Dems, so let them take the heat for throwing money down a hole.

From what I understand GM and Chrysler may not make it to Obamas Inaugaration. Sounds like Bush is gonna use part of the 700 billion. So apparently now instead of a bridge loan we really are going to bail them out! I know everybody here is skeptical about those loans being paid back but if Bush does this there will not even be the possibility of getting it back. Not really sure about the wisdom of what just happened yesterday!

[Tantal]

If this "bailout package" ever goes through, I will NEVER buy a car from the Big 3 again. Why would they need my business anyway? They'll just get my money through the use of government whether I buy their product or not. If they're going to take my money by force, I'll be damned if I'll give them more of it of my own volition.

[DumbAss Tanker]

Voinovich is a RINO and always has been IMO.  I see the UAW still want's to keep pulling the strings in Detroit.

True, of course if you are a Senator from Michigan or any State bordering it, not backing the bailout is a suicide move, that's just political reality.

[Miss Mia]

From what I understand GM and Chrysler may not make it to Obamas Inaugaration. Sounds like Bush is gonna use part of the 700 billion. So apparently now instead of a bridge loan we really are going to bail them out! I know everybody here is skeptical about those loans being paid back but if Bush does this there will not even be the possibility of getting it back. Not really sure about the wisdom of what just happened yesterday!

What happened yesterday was short-sightedness on everyone.  The failure of GM will reverberate throughout and I think most people don't realize the ramifications of what will happen. 

[Toastedturningtidelegs]

What happened yesterday was short-sightedness on everyone.  The failure of GM will reverberate throughout and I think most people don't realize the ramifications of what will happen. 

Yes. I think alot of people don't realize that if GM and Chrysler fall they will take alot of tier 1&2 suppliers with them. Honda and Toyota use alot of those same suppliers,so they will be hurt in this as well!

[Odin's Hand]

The death of the UAW is a long-time coming. My dad worked at the OKC GM plant for 3 years, paid his MANDATORY union dues out of each check, and got absolutely zero support from them when he was terminated as an employee. They are nothing but ****ing leeches. Good riddance.

[Miss Mia]

Yes. I think alot of people don't realize that if GM and Chrysler fall they will take alot of tier 1&2 suppliers with them. Honda and Toyota use alot of those same suppliers,so they will be hurt in this as well!

Exactly, it goes much further than the actual plants and UAW employees.  Down the line to steel employees and truck drivers and the porters at dealerships.

[Odin's Hand]

Replacement part businesses and mechanics shops will become lucrative, because, the need for automotive transportation has not and will not decrease. Plant retooling is in what is in the future for them.

[Tucker]

Replacement part businesses and mechanics shops will become lucrative, because, the need for automotive transportation has not and will not decrease. Plant retooling is in what is in the future for them.

With what funding source? A government loan. That's where.

[Toastedturningtidelegs]

With what funding source? A government loan. That's where.

Hi-5 Tuck!

[Odin's Hand]

With what funding source? A government loan. That's where.

Yeah, God forbid venture capitalism from executive officers of corporations without governmental constraints find themselves into the marketplace again.

[Tucker]

Yeah, God forbid venture capitalism from executive officers of corporations without governmental constraints find themselves into the marketplace again.

Two different animals. Venture capitalists are an outside entity who risk money on a unproven/untested product in the hopes of generating a hefty profit.

A CEO of a company shouldn't be able to risk stockholder investments on risky ventures. That's not why investors buy securities in a company.

[Odin's Hand]

Two different animals. Venture capitalists are an outside entity who risk money on a unproven/untested product in the hopes of generating a hefty profit.

A CEO of a company shouldn't be able to risk stockholder investments on risky ventures. That's not why investors buy securities in a company.

I am saying they should be using THEIR personal income to reinvest in their business and not using tax subsidies as golden parachutes for their failures.

[Tucker]

I am saying they should be using THEIR personal income to reinvest in their business and not using tax subsidies as golden parachutes for their failures.

Ford is the only privately held auto company. It is my understanding that they pulled their request. GM and Chrysler are publically held companies. Why would a CEO at GM invest his personal money?  Where's the potential gain as opposed to the risk?

[Odin's Hand]

Ford is the only privately held auto company. It is my understanding that they pulled their request. GM and Chrysler are publically held companies. Why would a CEO at GM invest his personal money?  Where's the potential gain as opposed to the risk?

If they don't see profitability, there isn't a reason. So, why should the U.S. taxpayer, whom takes on those same risk the executives are willing to avoid, be forced by their elected officials, whom are supposed to be serving to increase the prosperity of their constituancy take up the burden of a "doomed business structure" according to the businesses' own leadership?