US Auto Manufactures Bailout - Page 2 - Mercedes-Benz Forum

Reply
 
LinkBack Thread Tools Display Modes
post #11 of 261 (permalink) Old 11-13-2008, 07:10 AM
Surely A Large Human
 
Qubes's Avatar
 
Date registered: Jun 2006
Vehicle: '08 C219
Location: Between Earth and Mars
Posts: 34,250
Mentioned: 2 Post(s)
Quoted: 493 Post(s)
Lifetime Premium Member
Just heard a gal on CBS put a fine point on the whole situation with this idiot Paulson and the economic mess.

"If this could be fixed overnight, it suggests that someone should have been doing something a long time ago."
Qubes is offline  
Sponsored Links
Advertisement
 
post #12 of 261 (permalink) Old 11-13-2008, 07:15 AM
~BANNED~
 
Jakarta Expat's Avatar
 
Date registered: Aug 2006
Vehicle: PM me to Join the Expat Muslims for Obama Club........
Location: Jakarta, Indonesia
Posts: 17,697
Mentioned: 0 Post(s)
Quoted: 3 Post(s)
Failure of auto industry could set off catastrophe

Advocates: Collapse of US auto industry could set off catastrophic chain reaction

DETROIT (AP) -- Advocates for the nation's automakers are warning that the collapse of the Big Three -- or even just General Motors -- could set off a catastrophic chain reaction in the economy, eliminating up to 3 million jobs and depriving governments of more than $150 billion in tax revenue.

Industry supporters are offering such grim predictions as Congress weighs whether to bail out the nation's largest automakers, which are struggling to survive the steepest economic slide in decades.

"We've got to do this because the cost of inaction is so high to communities, to workers, to companies," said Sen. Sherrod Brown, a Democrat from Ohio. He was among many lawmakers worried that an industry collapse would be devastating for everything from school districts to small businesses.

Even if just GM collapsed, the failure could bring down the other two companies -- and even the U.S. operations of foreign automakers -- as parts suppliers run out of money and shut down.

Concern about the automakers hit new heights Friday when GM and Ford reported they spent a combined $14.6 billion more than they took in last quarter. GM said it could run out of money by the end of the year.

Ford said it could last through 2009, but only because it arranged a hefty credit line last year.

All this comes after tight credit and economic uncertainty in October reduced U.S. auto sales to their lowest level in 25 years -- with no rebound in sight.

If the industry failed, among the hardest-hit communities would be Lordstown, Ohio, a village of 3,600 people about 50 miles east of Cleveland that has been home to a GM factory since 1966.

If the plant closed, Lordstown would lose up to 70 percent of its budget, a scary scenario that proponents of a multibillion dollar bailout say would be repeated across the industrial Midwest.

"If they went completely under, obviously it would financially devastate us," said Michael Chaffee, a school teacher and Lordstown's part-time mayor. "It would be catastrophic for our whole area."

Without GM and nearby parts factories, he said, Lordstown's $4.2 million budget would take about a $3 million hit that would almost certainly require layoffs of police and drastic cuts in park programs.

A study by the Center for Automotive Research in Ann Arbor estimated that the failure of Chrysler LLC, Ford Motor Co. and General Motors Corp. would eliminate up to 3 million jobs, including those at parts suppliers and smaller businesses that rely on the automakers.

State, local and federal governments would lose more than $150 billion in tax revenue over three years, the study said.

Next week, Congress plans to consider giving the auto industry part of the $700 billion Wall Street bailout during a lame-duck session.

Opponents of the idea say government money will just delay the inevitable demise of companies that are on death's doorstep because of years of mismanagement and labor costs that are far higher than their global competitors.

"How is this money going to make a positive difference in creating a new competitiveness?" asked Sen. Jeff Sessions, an Alabama Republican.

Sessions and others also fear that opening the treasury to automakers will invite more industries to plead for federal help.

"Once we cross the divide from financial institutions to individual corporations, truly, where would you draw the line?" said Sessions, who also opposed the Wall Street bailout.

Automakers say bankruptcy protection is not an option because people would be reluctant to make long-term car and truck purchases from companies that might not last the life of their vehicles.

But Sessions and others say Chapter 11 might be a better option than government loans. Airlines, Sessions said, have reorganized through bankruptcy, and the auto industry could do the same, protected from creditors and lawsuits while companies work to become profitable.

"I would prefer they would go through a reorganization process, and sometime in that process, if targeted aid might be effective, I would consider it," he said. "It seems like the larger the amount of money that's being spent, the less attention anybody pays to how it's spent."

Automakers say they are poised to rebound because they have been restructuring for years -- shedding jobs, consolidating engineering and design, and making plants more efficient. The Big Three have cut their combined U.S. hourly work force more than 40 percent since 2005, from 244,000 to about 139,000.

David Cole, chairman of the Center for Automotive Research, said Detroit is losing money now because it has too many factories making more vehicles than the market is buying. As a result, it must discount with incentives to sell them.

But as factory cuts take effect, automakers will see more profits -- about $2,000 per vehicle -- because they won't have excess cars and trucks and won't have to discount, Cole said. But that means consumers will probably pay more for cars in the future.

The increased profits, coupled with about $1,000 per vehicle in savings from a cost-cutting contract with the United Auto Workers, will allow automakers to repay debt to existing creditors plus the government, Cole said.

"The earning potential of this industry has the potential of covering that debt surprisingly fast," he said.

Brown, the Ohio senator, said letting the industry collapse would also be a national security risk, eliminating companies that were essential in two world wars.

"If we ever need that national security production for serious defense, for any kind of significant war, it's gone," he said.

If a bailout is approved, it's likely to come with significant strings attached. Even proponents like Brown would like to see limits on executive pay and a ban on shareholder dividends. Others have suggested management changes and tougher fuel economy requirements.

But back in Lordstown, people just want to the government to act.

Joellen Spletzer, owner of a convenience store about a mile from the GM plant, can't understand how Congress could quickly bail out Wall Street but balk at helping an industry that supports so many people.

"I'm not talking about my little store on the corner," she said. "It will affect people in so many widespread ways it's unbelievable."

Failure of auto industry could set off catastrophe - Yahoo! Finance
Jakarta Expat is offline  
post #13 of 261 (permalink) Old 11-13-2008, 08:40 AM
BenzWorld Elite
 
elau's Avatar
 
Date registered: Oct 2002
Location: Maryland
Posts: 5,392
Mentioned: 0 Post(s)
Quoted: 4 Post(s)
Here we go again........the bailout of the banking industry was based on a bunch of lies and scare tactics by Paulson. Did throwing $700B away worked? NO!!!

What makes you think bailing out the Big 3 is going to work? As I post before, this auto industry bailout was tried 30 years ago. It didn't work then and what makes you think it will work this time?

I totally agree the UAW is a major part of the issue. They never hesitated to blackmail the car manufacturers to get what they wanted, now they go ape shit because the industry is in disarray and their very own existence is in jeopardy. They should have thought about that long and hard before. I say sink the entire industry. Fuck them all and let the market sorts itself out as I don't want another penny of my tax money goes toward bad business decisions.

'95 R129
'04 G35.5 BS
'10 X204
elau is offline  
post #14 of 261 (permalink) Old 11-13-2008, 08:45 AM
~BANNED~
 
Date registered: Sep 2004
Vehicle: 2002 clk320
Location: Lancaster, Kentucky
Posts: 8,498
Mentioned: 0 Post(s)
Quoted: 0 Post(s)
Wheres my "GUBMENT" Cheese.
the clk man is offline  
post #15 of 261 (permalink) Old 11-13-2008, 08:45 AM
~BANNED~
 
Date registered: May 2008
Vehicle: MBZ 300SD
Location: Los Angeles
Posts: 2,949
Mentioned: 0 Post(s)
Quoted: 1 Post(s)
Quote:
Originally Posted by elau View Post
Fuck them all and let the market sorts itself out as I don't want another penny of my tax money goes toward bad business decisions.
Do you have a sister?
There is a lot of propaganda in the news this day.
Let GM break up into entities that the market wants.
If you build something that is not wanted you should lose your job.
AndreiRN is offline  
post #16 of 261 (permalink) Old 11-13-2008, 08:55 AM
BenzWorld Elite
 
elau's Avatar
 
Date registered: Oct 2002
Location: Maryland
Posts: 5,392
Mentioned: 0 Post(s)
Quoted: 4 Post(s)
Every stinking worker in those plants have full responsibility and pride for what they built regardless of what corners management want to cut. They all hold stake to the survivability and reputation of the company they work for and have the power for not allowing junks to roll off those assembly lines. Yet they do, as long as their pay checks keep coming. The Big 3 has been in the bottom of almost every quality control list in Consumer Report for the last 20 years (they have been getting a little better in recent years and I will give them that) should sound an alarm to them, but hey, what do they do? They keep cranking out junks year after year and now they cry foul. What a bunch of girlie men.

'95 R129
'04 G35.5 BS
'10 X204
elau is offline  
post #17 of 261 (permalink) Old 11-13-2008, 01:18 PM
Forum Administrator RC Colas® & Moon Pies®
 
Digmenow's Avatar
 
Date registered: Oct 2006
Vehicle: 1981 380SL 151K: 2001 E320 4Matic Estate 147K: 2008 E350 Sport 4Matic 120K: 2005 S500 116K
Location: The Land of Pleasant Living
Posts: 36,501
Mentioned: 13 Post(s)
Quoted: 1272 Post(s)
Lifetime Premium Member
Garage
Quote:
Originally Posted by QBNCGAR View Post
It's got to stop. It simply has to stop. In fact, we shouldn't even do the TARP thing. Put a moratorium on foreclosures right now,
^^^
This only makes sense if it is followed by

this.
VVV

Quote:
Originally Posted by QBNCGAR View Post
and evaluate who got fucked vs. who got in over their heads being greedy. Restructure the loans for the people who got fucked - make up a 60 year product or something, that they can refi later. Let the rest sort itself out.
Here's what's going on in Maryland this week. I'm still not clear on whether the extension comes with an opportunity to renegotiate the loan or the "bridge loan" that is mentioned in the article will be another bill that the already drowning homeowner will have tied around his neck to pull him under faster.

If one of my tenants fails to pay the rent on time, I go to court for an eviction. In Maryland, the entire process from filing to the day the constable shows up on the doorstep averages about one month and the tenant can pay their late rent and fees any time up to the moment the first piece of furniture is removed from the property.

It has been my experience (with the occasional happy exception) that someone who can't pay one month's rent will not be able to pay a second, also.

Delaying the process as described in the article usually makes a serious problem even worse except in the case where a homeowner has suffered a temporary set back and is on the way to recovery.

State reaches agreement to help fight foreclosures

The Sentinel


By Anthony Raad

Special to The Sentinel

As delinquency and foreclosures continue to climb across the nation, Gov. Martin O'Malley announced that an agreement has been reached with six mortgage servicing companies to help better connect distressed Maryland homeowners and their respective mortgage companies.

The companies, accounting for 23 percent of home loans in Maryland, including HSBC, Ocwen, GMAC ResCap, Litton Loan Servicing, AmeriNational Community Services and Citi have pledged to abide by a predetermined timeline for loss mitigation that will ensure homeowners have an answer within 75 days from the time they submit a loss package.

O'Malley was joined by Department of Labor, Licensing and Regulation Secretary Thomas E. Perez, Department of Housing and Community Development Secretary Raymond Skinner and Financial Regulation Commissioner Sarah Bloom Raskin.

The service companies also agreed to a cooling off period in which they will generally halt foreclosure actions and penalties that would accrue. Dig's edit: This is where the bank and the homeowner better be hammering out a new deal.

Maryland is the first state in the nation to enact a duty of care that requires them to quickly respond to homeowners who are in distress.

"During this time of economic uncertainty, we must do all that we can to protect our middle class families and keep our families in their homes," said O'Malley.

Designated representatives, known as "Team Maryland," will serve as direct points of contact for Maryland assistance networks working with distressed homeowners. Moreover they will also provide "escalation contacts," that have the authority to resolve more complex cases.

A new loan program called the "Bridge to HOPE" provides small gap loans at zero percent interest to struggling homeowners. Families and individuals facing the possibility of foreclosure should call 1-877-462-7555 or they can visit HOPE (Home Owners Preserving Equity): Foreclosure Prevention/ Assistance Program.Dig's edit: Not sure how this will help the already overmortgaged homeowner.

"Maryland has been at the forefront of creating policies and reforms to combat the foreclosure crisis that has swept the nation. These agreements are a critical component of our comprehensive efforts to provide homeowners with the resources and assistance they need to remain in their homes," said Perez.

Legislation enacted by O'Malley in early April lengthened the foreclosure process from 15 day to approximately 150 days, giving homeowners extra time before a foreclosure sale. The lender must wait 90 days after default before filing the foreclosure action and send a uniform Notice of Intent to Foreclose to the homeowner 45 days before filing an action. It also requires a personal notification from the lender that a foreclosure action has been placed. The lender may not sell the house for 45 days after the notification. Dig's edit: This will be putting a strain on the banks as the homeowners who are planning to bail get 5 more months of free rent before they skip out to the local garden apartment complex. In the future, banks will be less likely to lend here due to this risk.

"This new regulation makes clear that servicers with a Maryland license will be held to a standard of care that reflects best practices in the industry and is responsive to consumers," said Raskin.

Quis custodiet ipsos custodes?

Digmenow is offline  
post #18 of 261 (permalink) Old 11-13-2008, 03:12 PM
BenzWorld Elite
 
Cancer_Researcher's Avatar
 
Date registered: Feb 2008
Vehicle: 03 Corvette Z06;08 GMC Acadia;84 230CE MANUAL Euro;12 Acura TL Tech Pkg; 02 Lexus LS430 Ultra Luxury
Location: Somewhere, USA
Posts: 13,825
Mentioned: 0 Post(s)
Quoted: 59 Post(s)
I say let them fail. I wouldn't loose a minute of sleep if I never saw a GM, ford, or Chrysler again. As far as the workers are concerned, I am sure Toyota, Nissan, Honda will be more than happy to fill in the gap and take over these plants and build REAL cars and employ the unemployed from the big 3. Same goes for the secondary and tertiary industry related to the auto industry. I don't believe the gov't bullshit that 2 million people will become unemployed. 750K work for the big 3 and these people will eventually find jobs when the foreign car companies move in to take their place. Until then, they can haul shit for $5/hour. An example should be made out of them. Also these people need to be hired at 1/4 of what they are making including the benefits and retirement package. Secondly, it should be the company's policy that they will not hire any person who belongs to a union. unions should be dissolved IMO. I blame the unions for the average American worker getting lazy, thinking that he deserves more than he already gets. Since the unions and the worker's demands are the reasons quoted above for the demise, I think it is only fair that the money should come out of the unions and workers benefits and pension plans or they can choose to become unemployed when the company goes under and haul shit for $5/hour with no health insurance.
Foreign cars are better, more reliable, and the foreign car companies are run better. I have never heard Japan or Germany bailing out their auto manufacturers every other year. Same applies to the airline industry IMO. Let them all fail. MAYBE we do need only one of 2 airlines. BLAH BLAH BALH............. I am sure I just pissed some people off but this is how i feel. If the banks fail, let them fail and forgive the all mortgages those companies made regardless of whether it was a good or bad mortgage, good or bad tenant. Let the public have these homes if their banks fail and shut down these banks. NO $700. This will teach a lesson to corporate America, make an example out of them and give them the message that they need to take personal responsibility and that nobody will bail them out or clean up after you. What is the worse that can happen? We have another great depression? As I recall we survived it and American can surely survive another one. It is resilient. I know this post is childish.
Cancer_Researcher is offline  
post #19 of 261 (permalink) Old 11-13-2008, 03:48 PM
BenzWorld Elite
 
elau's Avatar
 
Date registered: Oct 2002
Location: Maryland
Posts: 5,392
Mentioned: 0 Post(s)
Quoted: 4 Post(s)
Unfortunate this is a trickle down mentality. If we have a President who will not upheld his liability for anything he does, what makes you think the citizens of this country will?

What we need is to make everybody an example from the the top down. Haul the fucking President to the firing squad and Corporate chieftains to jail. Its the only way the next-in-line will think twice before they pull this shit on the people again. And I am all for that harsh punishments.

'95 R129
'04 G35.5 BS
'10 X204
elau is offline  
post #20 of 261 (permalink) Old 11-13-2008, 03:57 PM
BenzWorld Elite
 
Cancer_Researcher's Avatar
 
Date registered: Feb 2008
Vehicle: 03 Corvette Z06;08 GMC Acadia;84 230CE MANUAL Euro;12 Acura TL Tech Pkg; 02 Lexus LS430 Ultra Luxury
Location: Somewhere, USA
Posts: 13,825
Mentioned: 0 Post(s)
Quoted: 59 Post(s)
Quote:
Originally Posted by elau View Post
Unfortunate this is a trickle down mentality. If we have a President who will not upheld his liability for anything he does, what makes you think the citizens of this country will?

What we need is to make everybody an example from the the top down. Haul the fucking President to the firing squad and Corporate chieftains to jail. Its the only way the next-in-line will think twice before they pull this shit on the people again. And I am all for that harsh punishments.
I like the way the Chinese deal with everything We really NEED this in the USA

http://www.presstv.ir/Detail.aspx?id...onid=351020404
http://abcnews.go.com/International/...d=82639&page=1
http://jurist.law.pitt.edu/paperchas...for-taking.php
http://ibnlive.in.com/news/china-exe...015-2.html?xml

Last edited by Cancer_Researcher; 11-13-2008 at 04:04 PM.
Cancer_Researcher is offline  
Sponsored Links
Advertisement
 
Reply

  Mercedes-Benz Forum > General Mercedes-Benz Forums > Off-Topic

Quick Reply
Message:
Options

Register Now



In order to be able to post messages on the Mercedes-Benz Forum forums, you must first register.
Please enter your desired user name, your email address and other required details in the form below.

User Name:
Password
Please enter a password for your user account. Note that passwords are case-sensitive.

Password:


Confirm Password:
Email Address
Please enter a valid email address for yourself.

Email Address:
OR

Log-in











  • Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
     
    Thread Tools
    Show Printable Version Show Printable Version
    Email this Page Email this Page
    Display Modes
    Linear Mode Linear Mode



    Similar Threads
    Topic Author Forum Replies Last Post
    Fungus Manufactures Diesel hawk20 General Mercedes-Benz 0 11-05-2008 12:40 AM
    Bailout Follies Marsden Off-Topic 9 11-01-2008 03:24 AM
    Fannie Freddie bailout mlfun Off-Topic 22 07-15-2008 12:04 AM
    The Mortgage Bailout: your thoughts DP Off-Topic 101 12-10-2007 07:20 PM
    Anyone knows who manufactures the AMG wheels? Strax R170 SLK-Class 1 03-12-2001 11:09 AM

    Posting Rules  
    You may post new threads
    You may post replies
    You may not post attachments
    You may not edit your posts

    BB code is On
    Smilies are On
    [IMG] code is On
    HTML code is Off
    Trackbacks are On
    Pingbacks are On
    Refbacks are On

     

    Title goes here

    close
    video goes here
    description goes here. Read Full Story
    For the best viewing experience please update your browser to Google Chrome