US Congress is set to vote on the $25 billion bailout for the top three automakers that is aimed to help stabilize the American auto industry later today starting at 10am. It is believed the movement doesn’t have enough support for the bill to be approved. The automakers have warned that if they don’t get help soon and if they all were to fail, the government would lose more than $150 billion in annual tax revenue and aggregately, more than 3 million people would lose their jobs.
Not everyone is on board with the bailout. People argue that these companies made bad business decisions; therefore they should be allowed to fail. Wyoming Republican Mr. Enzi doesn’t believe the big three should be bailed out and was quoted as saying that the bail out would be “another check issued by the taxpayer to solve a long-term problem with a short-term solution.” The Bush Administration supports helping the big three with the previously approved $25 billion fund, but not with new funding. Out of the big three, GM desperately needs cash now the most as it’s about to become insolvent by about March 09 which will have a profound impact on everyone if it goes under. GM also recently sold all of its stake in Suzuki to get much needed cash back. Chrysler is likely the best suited as it actually has about $11 billion cash on hand.
Tags: 
Questions? Write to Hercules K at hercules@business2press.com
Facebook
November 19th, 2008 at 6:18 am
The UAW needs a little tough love. It derailed the Cerberus deal at Delphi. Today GM suffers a loss of about $2,000 per vehicle sold. On the other hand Toyota whose employees are not part of the UAW earns a profit of about $1,200 per vehicle sold. If GM was able to operate with labor prices near Toyota’s it would have pocketed an additional $29,715,200,000.
http://nomedals.blogspot.com/2008/11/gm-bailout-makes-no-sense.html
November 19th, 2008 at 6:58 am
Do you know how many hourly jobs GM has laid off from 2006 to July 2008? Take a guess. How about 34,000? And now, they’re talking about another 5,500 layoffs. How many hourly jobs has Toyota’s American production system laid off in the same time frame? Zero. That’s right. ZERO. So, what does Toyota know that GM doesn’t?
Read more at http://edgehopper.com/what-toyota-knows-that-gm-doesnt/
November 19th, 2008 at 8:36 am
Toyota knows that unions today kill companies. Unions had a purpose today they have out lived their usefulness. I live about 20 minutes from Flint Michigan where the unions started. I have family that works and has worked for GM. One of them wipes excess sealer and he makes $44 before all the benefits he gets. I don’t want to see GM close its doors but until they bust the Unions strangle hold on it. GM will have to close its doors. Another family member works at a non union parts maker and makes $19 per hour plus benefits.
November 19th, 2008 at 3:52 pm
BEG 3 had their chance to compete and failed miserably. I dont see any of the foireign auto makers in trouble. Also, what really ticks me is that BEG 3 provides a much much better auto to the overseas markets. They are the same cost, but have much higher (almost 2x) MPG and much lower (almost 1/2) CO2 emissions. The real pi$$er is that GM spends millions lobbying against better standards for fuel economy and emissions. LET THEM FALL BIG TIME…degenerates.
http://cpr-dionysus.blogspot.com/