📰 Auto News BREAKING: Automaker bailout agreement reached in Senate, still not a sure thing

[Mook]

CNBC is reporting that four U.S. senators have reached a bipartisan agreement on a bill to help the Big 3 automakers in Detroit. Those senators include Michigan Democrats Carl Levin and Debbie Stabenow, Ohio Republican George Voinovich and Missouri Republican Christopher Bond. Details of the bill are not yet available, but a news conference is scheduled for 2:30PM EST, at which time we should learn more. It will likely be some compromise between the Democrats' wish for taking an extra $25 billion out of the $700 billion financial bailout fund and the plan supported by the White House that would allow automakers to use the already approved $25 billion in low interest loans for anything they wanted rather than just investing in green technology.

Still, CNBC says the bill faces some big procedural hurdles, not the least of which is that senators want to go home soon for the Thanksgiving holiday. Trying to squeak in a vote before the break will be tough, and lawmakers may have to reconvene in December to vote on the bill. Plus, there's no guarantee the House of Representatives will pass it even if the Senate would.

Regardless, Wall Street seems pleased with the news as shares of General Motors and Ford have jumped, with the latter hitting as high as $4 after ending the day yesterday at $2.79.

Stay tuned, we'll bring you all the details on the new automaker bailout bill when they become available.

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[Angus]

hope they get rid of those jets, and knock out those ceo's salaries...

 

[Mook]

yea flying to DC in their own private jets to discuss getting a loan wasnt the best idea

 

[andcbii]

I say let them go bankrupt.

 

[Bru]

The big three use many of the same suppliers that other automakers use, so them going out of business would not just affect the domestic industry, but all automakers as well. Although I'm not sure the $25 billion will do any good if it goes into paying for private jet travel for CEO's families as well as million dollar bonuses for people who already make millions per year.

 

[radioguy6]

ive been pretty much against this bailout since they introduced it. I understand if we dont, they are pretty much screwed. But why should our tax money go to these arrogant corporate clowns that have not sacraficed their million dollar salaries, bonuses, private jets, cars and other perks? I can understand when the company is doing GOOD, you should be rewarded for your good work. But rollin up to DC to beg for $25 billion in one of their many private $36 million luxury jets yesterday was a slap in the face to every US tax payer and the entire US goverment. Thats like a homeless man rolling up to a PADS shelter in a Bentley.....

Why not sell off those unneccissary hundreds of millions dollar assets, take some pay cuts and help float the companies along and save the millions of jobs at stake? We work very hard for our money and sending a blank check to these fools would be rediculous. Why does the CEO of Ford need a $29 million salary when his company is about to fail? Whats going to stop Rick Wagoner and his boys from saying fuck it and retiring once they get their fat check from Washington?

 

[Bru]

They need to prove to D.C. that the money isn't going to be pissed away, and unless they can prove that, then I don't think they deserve the money.

 

[andcbii]

ive been pretty much against this bailout since they introduced it. I understand if we dont, they are pretty much screwed. But why should our tax money go to these arrogant corporate clowns that have not sacraficed their million dollar salaries, bonuses, private jets, cars and other perks? I can understand when the company is doing GOOD, you should be rewarded for your good work. But rollin up to DC to beg for $25 billion in one of their many private $36 million luxury jets yesterday was a slap in the face to every US tax payer and the entire US goverment. Thats like a homeless man rolling up to a PADS shelter in a Bentley.....

Why not sell off those unneccissary hundreds of millions dollar assets, take some pay cuts and help float the companies along and save the millions of jobs at stake? We work very hard for our money and sending a blank check to these fools would be rediculous. Why does the CEO of Ford need a $29 million salary when his company is about to fail? Whats going to stop Rick Wagoner and his boys from saying fuck it and retiring once they get their fat check from Washington?

No to mention why give this guys money to continue running companies that haven't made money in years.

 

[Bru]

Update:

Aw Snap! Congressional Democrats undercut compromise bailout bill

http://www.autoblog.com/2008/11/20/aw-snap-congressional-democrats-undercut-compromise-bailout-bil/

Wow, what an amazing piece of political theater that just went down. As we reported, four senators from auto producing state (two Democrats and two Republicans) led by Michigan Senator Carl Levin have reached an agreement on a compromise bailout bill for automakers. They were set to announce details of the compromise bill at 2:30PM, but before they could, a team of Congressional Democrats led by House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid walked into the room in which the press conference was to be held and announced that they didn't support the compromise bill and that CEOs of the Big 3 would have to come back after the Thanksgiving holiday and present a plan on how any loans that might be given would be used.

Back to that compromise bill. The big stalemate, other than whether U.S. automakers should get a bailout at all, is where the money would come from. Democrats want to take $25 billion from the $700 billion bailout fund for financial institutions while Republicans and the White House want to re-appropriate $25 billion in loans that have already been approved for investments in green technology. Levin revealed the compromise to be a version of the Republican's plan, with concessions made to Democrats in that certain environmental restrictions would remain in tact and that loan repayments would go directly back to replenish the $25 billion fund for green investments.

What do we take away from all this? The Big 3 will get no assurance of federal aid before Thanksgiving, and there's still no guarantee they'll get help after the break. The ball is again back in the court of the Big 3 CEOs, who need to show up in December with detailed plans of how each would use any federal aid. The Democrats are calling for "accountability" and "viability" in their proposals, which are due to Congress by December 2.

 

[02BlueGT]

Ok, so it takes 2 weeks to give 700bil (actually 810 bil) to financal institutions that piss it away at a faster rate than what seems possible, I mean look at AIG, there has been no limitations on their pay ir any BS like that, then some people insult the Auto industry for asking for only 25bil, cause they use private jets, and may need more than 25bil, Do the bank CEO's use private jets, Hell yes, why is everyone shitting all over the big three when they employ over 3million people combined (including many supplier jobs) loosing 3 millions employees would be worse than if they had just let the financial industry fall apart........Bunch of hypocrites

 

[andcbii]

Ok, so it takes 2 weeks to give 700bil (actually 810 bil) to financal institutions that piss it away at a faster rate than what seems possible, I mean look at AIG, there has been no limitations on their pay ir any BS like that, then some people insult the Auto industry for asking for only 25bil, cause they use private jets, and may need more than 25bil, Do the bank CEO's use private jets, Hell yes, why is everyone shitting all over the big three when they employ over 3million people combined (including many supplier jobs) loosing 3 millions employees would be worse than if they had just let the financial industry fall apart........Bunch of hypocrites

negative. First of all people were pissed when AGI(i think it was them) had that cooperate retreat shortly after the bail out. Also they haven't given out most of that 700billion, they are waiting until obama becomes president so he can deal with it. Part of the reason people want to put limitations on the auto people is because of that the finance people did. It does look bad for the auto industry when they could pay 200 for a plain ticket but in stead they spend 22k for a private jet. in the 1920's they didn't bail out the banks and look at what happened. besides a lot of those people could easily get jobs at honda or toyota. If the big three stop making cars Toyota and Honda will have to start making a lot more. besides why should people get paid for making something that no one wants to buy.

 

[02BlueGT]

a lot of those people could easily get jobs at honda or toyota. If the big three stop making cars Toyota and Honda will have to start making a lot more. besides why should people get paid for making something that no one wants to buy.

Um, most the engineering and other jobs will be gone, why would Toyota and Honda hire more engineers when they can just sell more of the cars they already have??......And although many foreign manufacturers produce cars here, very few have engineering studios, corporate management near the scale of the domestics..........and auto sales are down for everyone, it would just put Honda/Toyota back to normal levels, so no expansion needed

 

[andcbii]

Um, most the engineering and other jobs will be gone, why would Toyota and Honda hire more engineers when they can just sell more of the cars they already have??......And although many foreign manufacturers produce cars here, very few have engineering studios, corporate management near the scale of the domestics..........and auto sales are down for everyone, it would just put Honda/Toyota back to normal levels, so no expansion needed

i wasn't talking about engineer i was talking about the people who put the cars together.

it would just put Honda/Toyota back to normal levels, so no expansion needed

that could be true but i think they would have to increase production to make up for the new demand.

 

[02BlueGT]

i wasn't talking about engineer i was talking about the people who put the cars together.

I'd say that less than 1/2 of GM/Ford/Chrysler employees in the US are on manufacturing, a huge percentage of the domestic cars are made in canada, mexico, and other foreign lands

that could be true but i think they would have to increase production to make up for the new demand.

Like I said there wouldn't be enough of an increase for them to hire, even if there was, it would only result in maybe 5% - 10% of 3,000,000 workers getting new jobs.....

 

[bluzohh6]

they don't deserve the money at all. The whole thing is bullshit. When the execs start making under 7 figures then they deserve the money.

 

[sickmint79]

no, when they figure out how to run a profitable business then they don't need the money. all these guys should be filing for bankruptcy.

 

[bluzohh6]

yeah well one of the ways to run a successful business in tough times it to cut out some of the fat. I would say 10 million dollar salary is fat.

 

[AlwaysVTEC]

no, when they figure out how to run a profitable business then they don't need the money. all these guys should be filing for bankruptcy.

I agree 100%. Overpaid union workers making a product worth less then the cost to build should give these idiots an idea.

 

[DanJ]

I'm sure it's all been said... but these companies need to get their priorities straight before they get huge amounts of government money to "bail them out" while they continue to spend money recklessly and don't even have a plan on how they're going to avoid this happening again. Too me these bailouts seem like "hey you guy's are fucking up, here's some money so you can continue to fuck up without going out of business for a little while longer".

 

[radioguy6]

it will sure be interesting to see what plan the big 3 come up with and if congress will buy it.