Detroit Bailout -- Do you support it?

[CowboyCO]

I really want American car manufacturers to succeed, but I don't see how a $50 billion bailout is going to help.

There is a reason that chapter 11 bankruptcy was created. It allows a company to reorganize, re-negotiate labor agreements, and contract dealer agreements so that they can be competitive in the marketplace. If they can't re-organize, then the company fails and the assets are bought out by another company to create new business opportunities.

Buick, Oldsmobile, Dodge, Jeep, Ford, Chevrolet, Cadillac, Lincoln, Mercury, Chrysler, Pontiac, Plymouth were all originally separate car companies. Now it's down to the big three. Toyota, Honda, Nissan Volkswagen, Subaru have all managed to open manufacturing plants in the US and be relatively profitable (given the current economic times).

As painful as it may be, we can't bail out everyone. Nearly every airline has been through bankruptcy in the last decade. Giving huge bailout packages rewards companies for poor business practices and just delays the inevitable.

That being said, the loan bailout for Chrysler in the 1980's did work, but I don't see Lee Iaccoca leading any of these companies...

Without restructuring labor contracts through bankruptcy, the business WILL fail and the jobs will be lost. Personally, I'd rather have a good job and a stable economy than no job and a dead town.

 

[shortbun]

I wanted to mark both the 'Yes' and 'where's my bailout' options, lol!!! Seriously, I don't mind this bailout of US car manufacturers. At some point the help will have to stop and mergers will have to happen though. We want to buy a new car and a work van next year. I'd love it if the manufacturers were still in business. I agree that we are lacking the likes of Iaococca.

 

[Judy WI]

Our paychecks come from GM dealers so would like to see them keep on. That being said I think they should go chapter 11 and redo what they have. Get the cost of manufacturing a car down. But husband said the retiree plans are goverment backed so if they go ch 11 then the goverment has to pick up that plan and that will cost more than the bail out.

 

[momxx5]

Sadly I think we can no longer live in the Pollyanna world where the US car industry should be saved. It is very disheartening that the US car companies have allowed themselves to be put into these positions. A large amount of bad desicions and poor management have resulted in a business that no longer can survive.
The Federal government should not be in the business of making cars or even keeping the companies going.

Extremely sad - yes!
But it really is time to move on. The focus and money needs to go into the thousands of people who will lose their jobs - retraining, exploration into new industries, etc.
I'd rather they split the $25, 50, whatever billions of dollars between all the municipalities that are losing out, towns failing and people without jobs. That would be a start.

 

[pearlieq]

No, I don't support it. I think it's going too far.

I can grudgingly support the idea of propping up our financial markets for fear of the alernative, but I don't think bailing out automakers is appropriate.

If US automakers can't compete and run a profitable business then they need to close. They've been in trouble for decades. I know it's painful--DH's family is hard hit by it. But are we capitalists or aren't we?

And, as everyone's asking, who's next? Airlines? Farmers? Software companies? Theme Parks? How do we decide who is "worthy" of a bailout?

We need to let our free market deal with this situation. I don't think we should be putting public money toward sorting this out.

 

[leahjade]

NO, especially after seeing the union leader on the news the other day saying the workers are not taking any concessions! They don't want any cuts in their average $24 an hour pay or very generous health care benefits. I think many of us have had to receive less of a pay raise and had insurance changes that we don't like, but had no choice in the matter.

 

[wardfamily1]

ABSOLUTELY NOT! My entire family has worked for the big 3 and I STILL do not support it. Not when CEO's are getting millions upon millions a year in bonuses.

I"m still ticked about AIG's big retreat after being bailed out!

 

[leahjade]

"m still ticked about AIG's big retreat after being bailed out

The news this morning said AIG workers have taken 3 retreats since they received our money! Also, not sure if they said Goldman Sachs or another investor who was bailed out put back $6 million of the money towards bonuses for their employees! So now they get a bonus for running the company into the ground.

 

[mom2aredhead]

ABSOLUTELY NOT! My entire family has worked for the big 3 and I STILL do not support it. Not when CEO's are getting millions upon millions a year in bonuses.

I"m still ticked about AIG's big retreat after being bailed out!

I agree. I was laid off from the auto industry. The person that orchestrated the re-organization plan that included closing offices and cutting jobs made millions and millions of dollars in bonus money the year that I was laid off...and several years prior. In the mean time, we were sharing pens in my office because we had a freeze on all office supplies. (Not kidding)

The contracts that the UAW has are completely antiquated...between the vacation time, salary, and other paid time off, it's ridiculous. Yet Honda Subaru and Nissan are all coming TO the USA and BUILDING plants and succeeding...why? No UAW chokehold that the Big 3 are bound to.

(btw, I was not part of the UAW when I worked there)

My 401K is down to nothing, and I'd venture to guess that by the time I am old enough to retire, they'll have blown through all of the retirement fund and I'll be out of luck. Let them re-organize under Chapter 11 and start making some good business decisions, including a payroll cap for the executives.

 

[TLSnell1981]

I voted NO. There has to be a stopping point....otherwise, the government will own it all. That being said, I believe it will happen. The dems owe the unions and this is their payoff.

 

[Tigger Woods]

I voted NO. There has to be a stopping point....otherwise, the government will own it all. That being said, I believe it will happen. The dems owe the unions and this is their payoff.

 

[MeghansMommy]

I don't know.

I agree with most of you here. I don't want a bailout, but then I think of my dad and my FIL who both worked for Chrysler and GM and I don't know what to think. Both my dad and my FIL have stated recently that they think the unions have destroyed the auto industry in Detroit. They are also both retired.

As much as I want to say "NO - absolutely not!" (which is how I do feel), I think of my dad and my FIL who relied on their pensions and didn't plan ahead thinking they would be set. I'm frightened for them, as they are from the generation where working in the automotive field meant you were set for life. Now they are both coming to the realization that they aren't. I don't want my dad working at McD's for survival when he's 80 because he was misled by the company that he worked for for over 35 years that his pension would take care of him and my mom. I'm sure both of them would love to go back in time and plan for their future they way the rest of society did - through 401k and investments. Instead, they relied on the automotive industry to pay their benefits and pension for life.

(I'm poor with words, so I hope you understand me).

For me, it's very murky. I don't know how to answer it.

If I didn't have family directly involved, I'd be screaming from the rooftops to let the *******s file bankruptcy.

 

[jodifla]

Sadly I think we can no longer live in the Pollyanna world where the US car industry should be saved. It is very disheartening that the US car companies have allowed themselves to be put into these positions. A large amount of bad desicions and poor management have resulted in a business that no longer can survive.
The Federal government should not be in the business of making cars or even keeping the companies going.

Extremely sad - yes!
But it really is time to move on. The focus and money needs to go into the thousands of people who will lose their jobs - retraining, exploration into new industries, etc.
I'd rather they split the $25, 50, whatever billions of dollars between all the municipalities that are losing out, towns failing and people without jobs. That would be a start.

If all 3 were to go under, it's MILLIONS of jobs, not thousands.

 

[RockNRollerGator]

I say since we're already throwing away $700 billion in this bailout, we might as well use some of that money to save GM and the auto industry in this country. Besides, GM shutting down business would be more costly than the cost of giving them some money to help them through a tough time, which isn't even their fault as much as it is the UAWs.

 

[Anewman]

Without knowing all the math...

A implosion of money would obviously help its stock price, Maybe even more than the actual bail out.

 

[DisFlan]

I'd support it if they guarantee to make more fuel efficient cars, fewer gas guzzlers and replace company leadership (with no bonuses). If they just continue on the same old path, it would be throwing money down a hole.

DisFlan

 

[Zippa D Doodah]

I voted NO. There has to be a stopping point....otherwise, the government will own it all. That being said, I believe it will happen. The dems owe the unions and this is their payoff.

ding ding ding ding... we have a winner!

I voted "no" because once this line is crossed there is no reason the gov't should not bail out a multitude of industries and businesses. I'm sure Circuit City and Best Buy will have their hands out soon.

 

[Not so Dumbo]

I voted yes
You can't spit in the state of MI with out hitting someone who is tied somehow to the auto industry. With our already 8.9% unemployment rate, I'm afraid even one of the big 3 going under would drag the entire state down with them.

 

[Peter Pirate 2]

It's just not that simple.

No, bailouts are not a good thing but in this case with an estimated 1.2 million jobs on the line the other alternative might possibly take us into a depression.

A few have touted to let the (so called) free market work it out, well, there is no free market and if you believe what takes place in the business world has anything do do with equal and free competition then I have a bridge in Alaska to sell you. It is primarily what got us in this mess (an unchecked market).

What needs to happen is that these bailouts must ooccur just to keep us moving BUT at the same time SERIOUS STRINGS need to be attached so there is no more corporate hanky panky. Cap executive salaries and perks until such time as the Company is able to stand on its own again (after repaying the debt).

Next the governement needs to restablish anti trust laws and corporate governance needs to be held to a higher standard. I know you on the right side of the isle will disagree with more government but I'm telling you (IMO) the system that you consiider 'free market' is broken and cannot or will not fix itself.

 

[Golf4food]

It's just not that simple.

No, bailouts are not a good thing but in this case with an estimated 1.2 million jobs on the line the other alternative might possibly take us into a depression.

A few have touted to let the (so called) free market work it out, well, there is no free market and if you believe what takes place in the business world has anything do do with equal and free competition then I have a bridge in Alaska to sell you. It is primarily what got us in this mess (an unchecked market).

What needs to happen is that these bailouts must ooccur just to keep us moving BUT at the same time SERIOUS STRINGS need to be attached so there is no more corporate hanky panky. Cap executive salaries and perks until such time as the Company is able to stand on its own again (after repaying the debt).

Next the governement needs to restablish anti trust laws and corporate governance needs to be held to a higher standard. I know you on the right side of the isle will disagree with more government but I'm telling you (IMO) the system that you consiider 'free market' is broken and cannot or will not fix itself.

1.2 Million jobs seems a bit on the low side to me. This isn't just about employees of the big three - there are also parts factories, shipping companies, insurance companies, aftermarket product suppliers and distributors, auto loan underwriters at banks and credit unions, car dealerships, mechanics, paint & body shops, tire stores, etc. All would be adversely effected if any or all of the big 3 go under or even if they file for Chapter 11.