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"Worst Business Conditions in 30 Years," Say Big Three
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Singing with a chorus that includes Fannie Mae, Freddie Mac, and AIG, the Big Three's top men (GM - Wagoner; Ford - Mulally; Chrysler - Nardelli) this week continued beseeching congressional leaders for $25 billion in low-interest federal loans. The U.S. auto giants claim to be facing the worst business conditions "in more than 30 years," according to Detroit Free Press.
Continuing to link the health of their industries to the fates of the U.S. economy and the American worker, the three powerful CEOs insinuated negative impacts on "tens of thousands of employees" and a "lasting effect on industrial production in the U.S." if no assistance is given. They also cited the housing crisis, high oil and commodities prices, and restrained credit as compounding auto industry struggles that make government assistance critical.
The executives also asked Washington leaders to "widen" the loan terms, loosening items like last year's mandate of 25 percent better fuel economy before funds would be released. Widening would allow more parts and vehicles to qualify under the loan's terms.
Wall Street is suddenly asking a lot of its governmental overseers, but can a penny-pinched, debt-laden U.S. afford another $25 billion on the heels of expensive moves like the $85 billion AIG bailout? And will domestic automakers really change approaches and vehicles this time around, or will it be back to business and SUVs as usual when the sun comes out again? Or can we afford not to? Let us know what you think in a comment below.--Colin Mathews, image from Ninjapoodles
Continuing to link the health of their industries to the fates of the U.S. economy and the American worker, the three powerful CEOs insinuated negative impacts on "tens of thousands of employees" and a "lasting effect on industrial production in the U.S." if no assistance is given. They also cited the housing crisis, high oil and commodities prices, and restrained credit as compounding auto industry struggles that make government assistance critical.
The executives also asked Washington leaders to "widen" the loan terms, loosening items like last year's mandate of 25 percent better fuel economy before funds would be released. Widening would allow more parts and vehicles to qualify under the loan's terms.
Wall Street is suddenly asking a lot of its governmental overseers, but can a penny-pinched, debt-laden U.S. afford another $25 billion on the heels of expensive moves like the $85 billion AIG bailout? And will domestic automakers really change approaches and vehicles this time around, or will it be back to business and SUVs as usual when the sun comes out again? Or can we afford not to? Let us know what you think in a comment below.--Colin Mathews, image from Ninjapoodles
Responses (6 total)
By Ed | Posted: Sep 21st 2008, 04:25:32 PM
India, with an interventionist Socialist and Utterly Econ illiterate Government, is hell on earth. If you like it, Houle, Move there.
China, while still socialist formally, has understood the basics of free markets and competition and reduced Govt Intervention since 1978, and that was thew year of their great takeoff, when they started on their way to become the world's biggest econ power (they will be, if they keep at it, in a few decades).
India will never be even close. Losers...
And NO, it is NOT money well spent to throw good money after bad money in COmpanies that OBSECNELY OVERPAY their unionised workers, EVEN WHEN THEY DO NOT WORK AT ALL (jobs Bank program!),
and these loser companies have been LOSING HOME GAMES TO THE JAPANESE BUT ESPECIALLY to the German Luxiryu makers 30 years IN A ROW!
By JKD | Posted: Sep 21st 2008, 01:11:07 AM
Close the factories in China, Korea, Mexico, and Canada for a change. Otherwise, GTFO - we don't need you here.
By Ed | Posted: Sep 20th 2008, 01:57:42 PM
Sorry for the duplicate posting, but my original post was rejected as duplicate, could not see it, so eventually re-sent it under my old name.
But the "Thor" post is a little better, I corrected some typos etc.
By Thor | Posted: Sep 20th 2008, 01:56:27 PM
Oh Really?
I do not hear HONDA (or even NISSAN) bitching about "business conditions". they will do FINE because, as President G W Bush urged the big 3 to do long ago, they
MAKE RELEVANT PRODUCT.
Ford and GM had NO PLAN B, that is, vehicles in their design studios to sell in a $4 and $5 gas price environment.
WHAT are they paying all these ECONOMISTS for???
Didn't these bozos see the handwriting on the wall? The HUGE increase in Oil demand In CHINA all these years? The Increase in the US demand too, due to the STUPID SUVS????
And now you want the poor, long suffering TAXPAYER to bail out these Impotent, incompetent IDIOT CEOS, these arrogant MORONS that have been losing HOME GAMES to the JAPANESE and Especially to the GERMAN LUXURY MAKERS for 30 years IN A ROW????????????
DISGUSTING!!!!
I could not care less if Korea or India or ZIMBABWUE for that matter, are helping their auto industries. What made the US GREAT, the Econ SUPERPOWER that it has been almost all of the 20th and well into the 21st century, is COMPETITION, FREE MARKTS AND CAPITALISM.
If you are afraid you will lose your OBSCENELY OVERPAID union job at GM or Ford, RETRAIN and learn to do something USEFUL, or take the $100k and retire if you do not have the guts to do so!
DO NOT ASK ALL THE REST OF US to pay for the mistakes of yoru MORON CEO who still gets $20 million a year for driving Ford, GM or Chrysler INTO THE GROUND!
By Edg | Posted: Sep 20th 2008, 01:47:09 PM
Oh REally?
I do not hear HONDA (or even NISSAN) bitching about "business conditions". they will do FINE because, as President G W Bush urged the big 3 to do long ago, they
MAKE RELEVANT PRODUCT.
Ford and GM had NO PLAN B, that is, vehicles in their design studios to sell in a $4 and $5 gas price environment.
WHAT THE HELL are they paying all these ECONOMISTS for??? Didn't these bozos see the handwriting on the wall? The HUGE increase in Oil demand In CHINA all these years? The Increase in the US demand too, due to the STUPID SUVS????
and now you want the poor, long suffering TAXPAYER to bail out these Impotent, incompetent IDIOT CEOS, these arrogant MORONS that have been losing HOME GAMES to the JAPANESE and Especially to the GERMAN LUXURY MAKERS for 30 years IN A ROW????????????
DISGUSTING!!!!
I could not care less if Korea or India or ZIMBABWUE for that matter, are helping their auto industries. What made the US GREAT, the Econ SUPERPOWER that it has been almost all of the 20th and well into the 21st century, is COMPETITION, FREE MARKTS AND CAPITALISM.
If you are afraid you will lose your OBSCENELY OVERPAID union job at GM or Ford, RETRAIN and learn to do something USEFUL, or take the $100k and retire if you do not have the guts to do so!
DO NOT ASK ALL THE REST OF US to pay for the mistakes of yoru MORON CEO who still gets $20 million a year for driving Ford, GM or Chrysler INTO THE GROUND!
By J-F Houle | Posted: Sep 20th 2008, 01:50:39 AM
leaders of China and India help their industries. Why washington doesn't do the same ? It's money well spend, rather than wars !
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