Should the government bail-out include domestic automakers? - Page 3

David Fermani · 11-11-08, 02:05

Quote:

Originally Posted by MotorCity

Regardless if you feel that they should receive some of the money on a moral basis the facts are that if they go under the ripple effects will devastate this country

You're right about that Jason. Imagine how much worse things could get for not only Michigan, but the entire country. I think the only ones to gain from it would be the non-Big 3 American car companies.

Holden_C04 · 11-11-08, 02:14

The Honda Ridgeline doesn't compare and it's never going to compete with the domestic trucks. It's a light truck and FWD and built on a car chassis IIRC. The real comparison (and one which domestics almost always lose) is against the Toyota Tundra. It's quicker than my Bimmer 0-60!

yakky · 11-11-08, 02:17

I'm for a bailout if they agree to meeting some very stringent CAFE standards. Everytime the standards are raised, they piss and moan how they can't possibly meet that mileage requirement. Because they couldn't they are in the current predicament. I'm also in favor of reviewing management pay structure for any company under government bailout. If your company is tanking, you aren't worth millions.

DaGonz · 11-11-08, 04:24

They shoulg get a bailout... if the big 3 go down, it woin't be a ripple effect, it will be a nuke going off in every community in America.

The fat cats who run the companies should bite the bullet and take a salary no more than the average worker. Someone who makes $16.5 million a year can afford it... when Lee Iacocca went to the feds for loan to save Chrysler in the mid 70's he took a salary of $1 a year.

Bunky · 11-11-08, 04:51

I saw a statistic that 1 in 10 jobs in the US is related to the auto industry. I would like to exec pay reduced and retired union workers have to give their "no cost" health care benefits. All the salaried workers are losing their no cost benefits.

BAKER · 11-12-08, 02:45

There was another thread on here recently, when one of our American friends jokingly talked about Canada being socialist, re. our medical system paid for by taxes. When does it take away from the capitalist, free market system when the govt. bails out companies in trouble. It almost becomes the govt. running the business? On the other hand, as mentioned in other responses here, it is a huge part of the American economy. In the real world today, the government should be there for the good of the people, and compromises in the system may be necessary.

MotorCity · 11-12-08, 04:31

Quote:

Originally Posted by David Fermani

You're right about that Jason. Imagine how much worse things could get for not only Michigan, but the entire country. I think the only ones to gain from it would be the non-Big 3 American car companies.

Yep, estimates are the the big 3 generate Approx 10 MILLION jobs (OEM, Dealers, Suppliers, Logistics, Service Industry that supports workers, etc) creating $330 BILLION in annual income that alone is STAGERRING, then you also need to factor in the taxes that each plant contributes to the city/town in which it operates...

Quote:

Originally Posted by DaGonz

The fat cats who run the companies should bite the bullet and take a salary no more than the average worker. Someone who makes $16.5 million a year can afford it...

Agreed

Quote:

Originally Posted by DaGonz

when Lee Iacocca went to the feds for loan to save Chrysler in the mid 70's he took a salary of $1 a year.

Ha ha, Lee was no fool... Dont be fooled, He did VERY well that year after stock options/bonus'.... The $1 pay was all smoke and mirrors

Picus · 11-12-08, 05:10

Funny, when we had the same thread on bailing out lenders it was like 90% no, 10% yes.

taki0187 · 11-12-08, 05:12

Someone correct me if I'm wrong but if the government bails out GM where does the government get the money? taxpayers, you and me? Same thing with Fannie and Fredie Mac the taxpayers are going to foot the bill for the greedy CEO's lending money out to people who couldn't afford it.

MotorCity · 11-12-08, 05:14

Quote:

Originally Posted by taki0187

Someone correct me if I'm wrong but if the government bails out GM where does the government get the money? taxpayers, you and me? Same thing with Fannie and Fredie Mac the taxpayers are going to foot the bill for the greedy CEO's lending money out to people who couldn't afford it.

The current proposal is to provide $75B to the Big 3, estimates are that if JUST ONE of the big three dissapear it will cost us * $175B in just the first year.....

* Based on a report on NPR

TortoiseAWD · 11-12-08, 07:43

Rewarding industry for failure yet again. Hooray?

Tort
(shakes head in disgust)

Yal · 11-12-08, 08:17

Quote:

Originally Posted by TortoiseAWD

Rewarding industry for failure yet again. Hooray?

Tort
(shakes head in disgust)

I agree its just ridiculous. I'd rather go through the 5-10 year pain of all that unemployment and money loss than give them a dime. These companies were/are run by the same people that were there when oil went scarce in the 70's but less than two decades later they did the same thing all over again and their only pathetic excuse is they just built what Americans wanted

If they go down I truly believe that out of the ashes of the devastation would come a better America. Let it happen.