Are you in favor of a bailout for the Automotive Industry?

Are you in favor of a bailout for the Automotive Industry?

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#1
W

WA_Vol

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#1
Looks like it will happen: http://www.poligazette.com/2008/11/08/obama-to-bail-out-auto-industry/

Time and again the U.S. government has bailed those companies out, thereby allowing sick companies to function and weaken the entire economy. These companies should have been allowed to go bankrupt many years ago, for they do not strengthen the economy as a whole. Instead, they slow it down, for they cannot survive without constant government interference.
In order to survive if a free market, these automakers will have to reform and become more efficient. However, the federal government has helped them out time and again, thereby encouraging them not to push through necessary changes.
President-elect Barack Obama now seems to prepare to do exactly what his predecessors did: he promised the automobile industry during the campaign to bail them out, and repeated that promise recently.
Although this makes Obama quite popular among automakers and liberal Democrats, many of whom are owned by lobbyists for the auto industry, centrist Democrats have signalled they are not willing to help automakers out until these companies prove that they are willing to make themselves more efficient and to reform.
Moderate and fiscal conservative Republicans too have made clear they do not support a bailout at this point in time. Former Governor of Massachusetts Mitt Romney worded it as follows recently for Forbes: “Before the government issues loans to the auto industry, as has been authorized by Congress, it should insist on seeing credible and independent strategies that will return the companies to long-term sustainability. Government should not finance ongoing losses and declining market shares.”
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#2
#2
I'm on the fence with this issue. On one hand, I really don't want another bailout, because I don't think the country can really afford another bailout. We have to stop borrowing money from foriegn countries, because it weakens our dollar, and makes us look needy to a sense.

On the other hand, GM and Ford are two big, unique companies, that are distinctly American. To let GM and Ford fail, would to almost take away a piece of America's soul in a sense, becuase they are so American. If they both fail, who's our biggest automaker? Chrysler? While I do love the Dodge's and the Chrysler's, they aren't as purchased in the US, and overseas for that matter. I may just be talking out of my ass here(I know one of you is bolden that up, for a nice rebuttal, but do as you will), but GM and Ford just might be too big to fail.

Clifnotes: I'm on the fence, for you of the shorter attention span varieties.
 
#4
#4
no. the US auto industry didn't learn the proper lesson in the late 70s/ early 80's.
 
#7
#7
Yeah, lets bailout the auto industry and then they turn around and give their big wigs nice pay raises while they cut employees...
 
#8
#8
Sure. In fact, I think I will run up a HUGE debt, file bankruptcy and let the government bail me out to the tune of a billion or so.
 
#11
#11
I know that I've heard national security arguments in the past with regard the possible loss of our manufacturing base in our automotive industry...how do you guys feel about that? Is it a non-issue...or is the capability to roll out transport (and perhaps other hardware) domestically in the event of a large war at jeopardy if the automotive industry in the US disappears to a large degree. Not just the infrastructure of course, but the people as well....
 
#12
#12
TennTradition said:
I know that I've heard national security arguments in the past with regard the possible loss of our manufacturing base in our automotive industry...how do you guys feel about that? Is it a non-issue...or is the capability to roll out transport (and perhaps other hardware) domestically in the event of a large war at jeopardy if the automotive industry in the US disappears to a large degree. Not just the infrastructure of course, but the people as well....
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It would hurt if a WWII scale conventional war broke out. I doubt seriously a war that scale would ever be conventional.

When asked what kind of weapons would be used to fight World War III, the physicist Albert Einstein replied, "I know not with what weapons World War III will be fought, but World War IV will be fought with sticks and stones."
 
#13
#13
I am not for a bailout. However, I don't have a problem with the gov't loaning the automakers the money so that they can re-tool & begin the climb to producing plug-in hybrids etc to get us off of the oil teet & out of the middle east
 
#14
#14
temat said:
I am not for a bailout. However, I don't have a problem with the gov't loaning the automakers the money so that they can re-tool & begin the climb to producing plug-in hybrids etc to get us off of the oil teet & out of the middle east
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Those hybrids will not get us out of the middle east. We have to find another economically viable source. We are still many years away.
 
#15
#15
KB5252 said:
Those hybrids will not get us out of the middle east. We have to find another economically viable source. We are still many years away.
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They will get us much closer that continuing down the current path
 
#16
#16
KB5252 said:
Those hybrids will not get us out of the middle east. We have to find another economically viable source. We are still many years away.
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If you want solar power developed to it's fullest. Find a way to make a weapon of mass destruction with it.
 
#18
#18
While I agree that this industry could and should be the portal by which new technology for new transportation energy options come from...I have a problem voting for this bailout only to have it reported the next week a quarter of the bailout money will be earmarked for bonuses for high ranked personnel so they don't lose the talent.
 
#20
#20
temat said:
They will get us much closer that continuing down the current path
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Don't get me wrong, we need to do something, I just think this is at best a short term fix and probably not something our government should invest in for a long term strategy. I think the hybrid experiment is not a long term solution and it would take many, many years for us to get a return on that investment. By then they will need to retool for a longer term solution. Who's to say they won't come back with their hands out for more money then?
 
#22
#22
delta is strong? people are far less likely to buy a car from a bankrupt company they are to take a flight. i don't support handing these people money unless we get significant layoffs and UAW concessions because otherwise they'll blow through this money in a year or two and then we are back where we started.
 
#23
#23
there should not be a dime given the auto companies without renegotiating UAW contracts....and I do not know for sure if money should be given to them for any reason....now the airlines are saying that they need help

does anyone see the union connection
 
#24
#24
T-TownVol said:
there should not be a dime given the auto companies without renegotiating UAW contracts....and I do not know for sure if money should be given to them for any reason....now the airlines are saying that they need help

does anyone see the union connection
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No, executive salaries should be the first to be slashed. There should also be a 'no bonuses' clause attached to any bailout.
 
#25
#25
Overall, I'm against bailouts, but the auto industry is a huge part of our economy. It's a tough call. Part of me thinks that problems should work themselves out, because if we don't let them, it's just setting us up for more problems down the road. The other part of me truly worries about our economic situation. It's a tough call.
 
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