Bush announes rescue for GM & Chrysler

[White trash wagon]

President announces rescue plan for U.S. autos


WASHINGTON - The Bush administration came to the rescue of the troubled U.S. auto industry Friday, offering $17.4 billion in loans in exchange for concessions from carmakers and their workers.

"Allowing the auto companies to collapse is not a responsible course of action," President George W. Bush said. He said that a bankruptcy was unlikely to work for the auto industry at this time and would deal "an unacceptably painful blow to hardworking Americans" across the economy.

One official said $13.4 billion of the money would be available this month and next, $9.4 billion for General Motors Corp. and $4 billion for Chrysler LLC. Both companies have said they soon might be unable to pay their bills without federal help. Ford Motor Co. has said it does not need immediate help.
An additional $4 billion could be available in February.

The auto companies must use the funds to become financially sound. If they are not financially viable by March 31, 2009, the loans would be called and all of the funds will be returned to taxpayers.


http://www.msnbc.msn.com/id/28311743?GT1=43001

[Sgt Beavis]

As much as I hate to see it happen, I think it will have to be done.

I hope Ford ends up not needing any of that cash. They are certainly the most healthy of the big 3. However they would be in deep shit if GM declared bankruptcy.

[mikeb]

Looks like the UAW's "no negotiating" gamble paid off :rolleyes:

We'll see if in 3-4 months they'll be back for more under an obama administration.

[mikeb]

It's also funny how bush poked congress in the eye by passing this legislation in less than a week while congress had weeks of hearings and then dithered for awhile longer before saying "no".

[93coupelx]

It's also funny how bush poked congress in the eye by passing this legislation in less than a week while congress had weeks of hearings and then dithered for awhile longer before saying "no".

No checks and balances is funny. I mean why should anyone be able to limit anyone in our goverment today.

[Muffrazr]

I was watching this on the news this morning. That shit gave me an instant headache.

Now that we've begun feeding the junky it's beloved heroin, let's see how long it takes before tomorrow's withdrawals send it right back for more.

[Nate]

Looks like the UAW's "no negotiating" gamble paid off :rolleyes:

We'll see if in 3-4 months they'll be back for more under an obama administration.
I thought I read somewhere that the one stipulation outside of this is that the UAW have to renegotiate their contracts including stipulations in that to get closer to compensation to non union jap automaker wages.

[Nate]

Here is something from CNNMoney.com

Conditions similar to auto bailout bill

The terms of the loan are similar to those set in the auto bailout legislation that was passed by the House last week but was shot down in the Senate. Executives at GM and Chrysler must agree to limits on their compensation and eliminate perks such as corporate jets. The companies also must issue warrants, which convert into non-voting stock, to the government.

The loans do not include the concept of a so-called "car czar" to oversee the automakers, although it does say that a designee of the President would determine if the automakers are making the changes necessary for them to be considered viable.

The Bush administration official said that Treasury Secretary Henry Paulson would fill that role in the remaining days of the current administration.

The loans call for the automakers to prove they are viable by March 31, even though they are not expected to be profitable by that date.

The government wants the automakers reduce their debt load by two-thirds via a debt for equity exchange with current bondholders and get the United Auto Workers union to agree to wages and work rules competitive with non-union plants operated by Asian auto manufacturers by the end of next year.

In addition, the government is calling for GM and Chrysler to use their stock to pay for half the funds needed to cover future retiree health care expenses, which will be paid by union-controlled trust funds, rather than the automakers themselves, starting in 2010.

But there is flexibility for the companies and the incoming Obama administration to allow the loans to continue even if these targets are not reached, as long as GM and Chrysler can provide an explanation as to why they are viable without hitting those targets.

Republican senators demanded hard targets for labor union concessions and cited the UAW's resistance to agree to them as the reason the bill died last week.

But a Bush administration spokesman said there should be flexibility in the negotiations that will take place in the next three months between the automakers and the union.

"We do not feel it is appropriate for government to dictate the specific terms of negotiations between management and labor or management and dealers or management and creditors," the official said.

[Sean88gt]

I thought I read somewhere that the one stipulation outside of this is that the UAW have to renegotiate their contracts including stipulations in that to get closer to compensation to non union jap automaker wages.

They won't.

Our government has officially jumped the shark.

[White trash wagon]

They won't.

Our government has officially jumped the shark.

Don't be so down Sean, when the goverment bailed out Lockheed and Chysler in late 70's, it worked well. Iacocca got huge wage concessions at the time. He also paid off the loans 8 years ahead of schedule.

[Sean88gt]

Don't be so down Sean, when the goverment bailed out Lockheed and Chysler in late 70's, it worked well. Iacocca got huge wage concessions at the time. He also paid off the loans 8 years ahead of schedule.
I don't see any Iacoccas running around Detroit;)

[mikeb]

No checks and balances is funny. I mean why should anyone be able to limit anyone in our goverment today.

funny as in ironic/disastrous, not funny as in hilarious.

[Somewhere in Time]

Horrible time in American history. The leaders of this country are making grave mistakes right now. We will not feel the negative effects of all this for quite some time, but we will.

[Sean88gt]

Horrible time in American history. The leaders of this country are making grave mistakes right now. We will not feel the negative effects of all this for quite some time, but we will.
And we will feel it for 50+ years.

[thesource]

Auto Union Asks Obama To Reverse `Unfair' Bailout Terms

Dec 19, 2008 12:03:59 (ET)

DETROIT (AFP)--The United Auto Workers union said Friday it would try to reverse "unfair conditions" imposed in a government bailout package when President-elect Barack Obama takes office in January.

"While we appreciate that President (George W.) Bush has taken the emergency action needed to help America's auto companies weather the current financial crisis, we are disappointed that he has added unfair conditions singling out workers," UAW President Ron Gettelfinger said in a statement.

"We will work with the Obama administration and the new Congress to ensure that these unfair conditions are removed as we join in the coming months with all stakeholders to create a viable future for the US auto industry."

[mikeb]

Auto Union Asks Obama To Reverse `Unfair' Bailout Terms

Dec 19, 2008 12:03:59 (ET)

DETROIT (AFP)--The United Auto Workers union said Friday it would try to reverse "unfair conditions" imposed in a government bailout package when President-elect Barack Obama takes office in January.

"While we appreciate that President (George W.) Bush has taken the emergency action needed to help America's auto companies weather the current financial crisis, we are disappointed that he has added unfair conditions singling out workers," UAW President Ron Gettelfinger said in a statement.

"We will work with the Obama administration and the new Congress to ensure that these unfair conditions are removed as we join in the coming months with all stakeholders to create a viable future for the US auto industry."


Well, there is gratitude for ya. Save their asses, and they have a complaint.

[Trip McNeely]

Now I guess I finally have something Im pissed off at Bush for. :mad: Fucking Union people make me sick.

[Sean88gt]

Well, there is gratitude for ya. Save their asses, and they have a complaint.
It's just a shame that there are no testicles at the corporate level in the Big 3. It would be great if the heads of these companies told Bush, 'don't worry about it, it is clear that the UAW has no concern with the survival of the company so we are going to cut our concern of the UAW and the workers that belong to that leech. We will move to file Ch. 11 and focus on building plants in the south where workers are more appreciative and less greedy.'

[Blown03_GT]

Now I guess I finally have something Im pissed off at Bush for. :mad: Fucking Union people make me sick.
Why are you pissed at Bush? He is the one that is putting the stipulations on the bailout that the UAW is going to have Obama remove.

[Trip McNeely]

Why are you pissed at Bush? He is the one that is putting the stipulations on the bailout that the UAW is going to have Obama remove.
He is the only one to bow to the pressure. The last resort I guess. Even then so these stupid Union people are taking advantage of it. Pisses me off. When are the individual American bailouts?

[Blown03_GT]

He is the only one to bow to the pressure. The last resort I guess. Even then so these stupid Union people are taking advantage of it. Pisses me off. When are the individual American bailouts?
I can understand that. I didn't want to see them bailed out either, but if it was goign to be done something has to be done about the damn union. Fuck those money hungry bastards. I want 47/hr to put lug nuts on a Tahoe.

[mikeb]

It's just a shame that there are no testicles are the corporate level in the Big 3. It would be great if the heads of these companies told Bush, 'don't worry about it, it is clear that the UAW has no concern with the survival of the company so we are going to cut our concern of the UAW and the workers that belong to that leech. We will move to file Ch. 11 and focus on building plants in the south where workers are more appreciative and less greedy.'

I agree, lots of land in texas to build auto plants, and plenty of people available to work in them.

[Muffrazr]

I agree, lots of land in texas to build auto plants, and plenty of people available to work in them.


That's the line of thought I've been thinking about. We secede, have the automakers move down here without their unions, entice them with a closer proximity to their Mexican factories, and have very few stipulations.

Once that ball got rolling there would be an influx of other manufacturing operations wanting to setup shop here.

[8mpg]

At least our Texas representative has some brains:
Rep. Jeb Hensarling, R-Texas, chairman of the congressional oversight panel for the Wall Street rescue program, said a Chapter 11 bankruptcy reorganization, not loans rewarding decades of mismanagement, would have been a better decision.

"Unless union contracts are renegotiated, and unless demand picks up for domestic autos, $14 billion, $34 billion, $74 billion, even $104 billion will not solve the problem," Hensarling said.


Fucking UAW..whaaa, whaaa... Bush cut our Jobs Bank and now we have to get off our ass and try and get a job. Fucking worthless people.

[FreightTrain]

I understand things are tough and the employees need to bend a little in order to help the company survive, but it shouldn't all be placed on the shoulders of the UAW. If GM needs to cut wages and benefits by 20% in order to stay in business so be it, but those cuts need to start at the CEO and go all the way down to the janitor. I also don't think any executive or white collar worker should get any type of bonus until GM has become profitible and has repaid the loans.

I just hope this isn't a repeat of the Airline Industry 7 years ago. When all the workers took it in the shorts on pay and benefits and the top executives got huge bonuses because they claimed they reached their goals. :rolleyes: :mad:

[forever_frost]

Actually, it's time the UAW started giving back to the cash cow that's been feeding them.

[Trip McNeely]

Actually, it's time the UAW started giving back to the cash cow that's been feeding them.
HA! Good Luck on that.

[forever_frost]

http://www.msnbc.msn.com/id/28323341/

Looks like the UAW is pissed. According to them, the only reason to unionize has been taken away.... Hopefully Obama doesn't fuck this up.

I've seen every demand from Congress that the Big 3 give up their corporate jets, bonuses and such, why isn't it being demanded that the UAW sell their jets, private golf course and give up their bonuses? How about some parity from a group that produces nothing but feels free to make demands of industry?