Showdown looming in U.S. Congress on automaker rescue

I have analyzed the problems the automakers have had for a loooooooong time. There is a cultural blindspot in the US due to not aware of what is developing overseas - the competition is deadly. I posted several months ago that if things got REALLY bad, I and CEO Steve Jobs should be there at the restructuring. However, I don't think any auto analysts see anyone surviving politically after restructuring the industry.

Bad idea - let them fold if that's where they're heading. Governments shouldn't be propping up these outdated smokestack industries and corrupt unions.

@RakishGadfly

Governments shouldn't be propping up these outdated smokestack industries

Maybe they should chuck another mountain of taxpayer's money at their friends in the 'sunrise' banking and finance industries instead. Then we could all commute to work piggybacking on some nice banker's back.

A White House alternative would let the car companies take $25 billion in loans previously approved to develop fuel-efficient vehicles and use the money for more immediate needs. Congressional Democrats oppose the White House plan as shortsighted.

The $25 billion already approved by Congress was given as compensation to help meet higher fuel economy laws passed by the government. The vehicles that will be built with this money - compacts, subcompacts, hybrid, fuel cell and electric vehicles, make little or no profit for the Big 3 (as opposed to SUV's with a 25 - 35% profit margin). It makes no sense to force the companies to use this money as Congress initially intended when Ford and GM are probably heading into bankruptcy protection. One way or the other, they'll need to meet the new fuel economy laws anyway, the worst way would be to not be building cars in 2012.

Statistician;

Why are you assuming that I support the bank bailout too? They should go under if they're inefficient businesses too, as should any other, or do you think that you can store money and get loans in your union-made car? Bottom line in the US and Canada is that the "Big 3" are dying and it's not the auto industry that's in decline, but rather the American auto industry. They'll go under sooner or later, less pain if they do so now. If governments want to throw money at industry, invest it in technology and innovation as they are the currencies of the future, not supporting GM, which is essentially a financing company that makes cars and can't compete with the Honda and Toyotas of the world, who also make cars in the US.

The big 3 needs to be taken apart, de-greased,and reassembled again. Just like an engine. The big three needs a wake up call. They have patients to improve car mileage, they probable have a patient on an electric motor/car the can go 225 mph. I really do not have sympathy for these companies. They have been stealing small people inventions for decades. There is a movie coming about the man that made the "first automatic winshield wiper". The things this man went through. They have a patient on a car battery that never needs charging/replacement. You never see these inventions or here about these people inventing stuff so we won't be dependent on oil. An electronic car is not far from being made. The big three just doesn't want to sell it. Oil Corporations and the big three are destroying the enviroment. Ohh I gotta go to work. Peace !!!!

Let them self-destruct. They had more than ample time to change the cars to hybrids or advanced technology to create an electric motor. There are alot of backyard inventors who can change the dependency on foreign oil.

So long as the UAW is there and the current management is there, giving them bailout money is only going to be throwing away taxpayers' money.

Let them hang dry for a while, let them file Chapter 11, let them break the UAW contracts and shed the legacy costs first. Let the market decide if people want GM, Ford and Chrysler to be around in the future. Otherwise, let them go the route of Zenith, Pan Am, et. al.

Senator Shelby, looking for a buck, stabs Detroit in the back:

Hyundai factory finds sweet home in Alabama - 5/16/05 Detroit News

Isuzu buys Alabama land for possible factory - Autos- msnbc.com

Honda Plans to Build Plant in Alabama for Larger Vehicles - New York Times