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Big Three Bailout: The Votes Aren't There

Big Three Bailout: The Votes Aren't There

By Marty Padgett's avatar Marty PadgettMarty Padgett December 4th, 2008

White House Detroit meeting

White House Detroit meeting

Enlarge Photo
The heads of Detroit's automakers are in Washington, D.C., today with a revised--and more PR-friendly--appeal for desperately needed loans, but the Senate's majority leader says the votes aren't there.

The AP reports Sen. Harry Reid (D.-Nev.) as saying, "I just don't think we have the votes to do that now."

The Big Three automakers and their leaders--Ford's Alan Mulally, GM's Rick Wagoner, and Chrysler's Bob Nardelli--caravaned to the nation's capital seeking a bailout package worth $34 billion, up from the initial $25 billion proposed a few weeks ago when the executives arrived in D.C. famously on corporate jets. This time around, GM and Chrysler are warning they could be insolvent in a matter of weeks--and to underscore their commitment to rapid change, arrived in Washington in their most fuel-efficient vehicles.

The Congressional deadlock on loans for the automakers is caught up in no small amount of politicking. Treasury Secretary Hank Paulson doesn't want automakers rolled into the $700 billion bailout fund he presides over; senators like Alabama's Richard Shelby are avowed against any Detroit bailout, more than likely because their constituents have nothing to lose (Alabama is home to transplant factories for Mercedes, Honda, Hyundai, and Toyota). If nothing passes from Congress before the holidays, it will be up to President Bush to approve a major financial package, although the Treasury has the authority to loan the automakers money.

GM says it needs $4 billion immediately, and Chrysler $7 billion, to stay in business until the end of the month. White House Detroit meetingEnlarge PhotoThe heads of Detroit's automakers are in Washington, D.C., today with a revised--and more PR-friendly--appeal for desperately needed loans, but the Senate's majority leader says the votes aren't there. The AP reports Sen. Harry Reid (D.-Nev.) as saying, "I just don't think we have the votes to do that now." The Big Three automakers and their leaders--Ford's Alan Mulally, GM's Rick Wagoner, and Chrysler's Bob Nardelli--caravaned to the nation's capital seeking a bailout package worth $34 billion, up from the initial $25 billion proposed a few weeks ago when the executives arrived in D.C. famously on corporate jets. This time around, GM and Chrysler are warning they could be insolvent in a matter of weeks--and to underscore their commitment to rapid change, arrived in Washington in their most fuel-efficient vehicles. The Congressional deadlock on loans for the automakers is caught up in no small amount of politicking. Treasury Secretary Hank Paulson doesn't want automakers rolled into the $700 billion bailout fund he presides over; senators like Alabama's Richard Shelby are avowed against any Detroit bailout, more than likely because their constituents have nothing to lose (Alabama is home to transplant factories for Mercedes, Honda, Hyundai, and Toyota). If nothing passes from Congress before the holidays, it will be up to President Bush to approve a major financial package, although the Treasury has the authority to loan the automakers money. GM says it needs $4 billion immediately, and Chrysler $7 billion, to stay in business until the end of the month.

Tags: Politics, General Motors

Posted in: 2008, Chrysler, Ford



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Responses (12 total)

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  1. By jerseyGEoff #11, Posted: 12/5/2008

    And let's throw another fact out there: all agree the industry needs to cut unit volume, and if you do that you cut current employees and add to the retiree under 65 rolls- that will drastically exacerbate the legacy healthcare cost burden from even today's horribly non competitive models. 20 billion here and there will not fix this as efficiently as a medicare scale up- so if you want to enrich the HMO's while screwing the rest of America, do a conventional bailout.
    If you wish to efficiently address exactly the major cause( besides a near depression) then fix the health care issue! Cheers..

  2. By moparnutz #12, Posted: 12/8/2008

    YOU KNOW.. YOU A PAID HIRED LACKEY AS ARE ALL THE MEDIA COVERAGE OF THE AUTO INDUSTRY.
    HAD IT NOT BEEN FOR .. Walter P. Chrysler.. spending money on research.. {MARKETS].
    General motors, FORD and Rambler AMC Jeep.. would not have been able to build the market as it is today.
    Can not recall, whom ,, nor how many! .. Chrysler placed on his staff.
    With the information they gleamed!! .. from there research ... defined what automobile's .. what size .. .
    what engines , et al.. .. the consumer would purchase ,
    G.M. !! .. WAS ABLE TO HIRE .. the person! .. Chrysler placed in charged.. along with that person
    [ reeks of industrial espionage} he walked off , with all of the research.
    Thusly moving GM into first place.. with FORD hot ..[on].. GM's trail.. Cheaply made cars.. good ..
    PR .. a willingness .. to allow Black's / Brown peoples access to ,
    credit and booze. is the only reason FORD is still Here.
    GM on the other hand ,well.. god looks out for ... FOOLS .... Drunks,, and the Good Ship Lollipop.
    The only reason I can think of.. as to why GM !! ..is even in business, they should have went under
    with the Corvair.. if not the Corvair ..... the Vega ...
    Instant rust.. before it exited the production lines..
    Yes The Corvair ..., and Vega .. ...proof positive.. there is a god..

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