Bail-Out the Auto Industry

[Harry]

Should $25 billion in tax dollars be given next week to bail-out Ford, GM and Chrysler?

Apparently people are NOT buying enough of their product.

Harry

[Greg S]

If there is a bail out I think it will be because politicians fear the domino effect chapter 11 may cause.

The US is teetering on the brink of economic collapse and if pushed over the edge the rest of the world may chose to step away to avoid as much collateral damage as possible.

[Mark]

Personally, I don't think our gov't should be bailing out ANYONE. Let the markets do their things. Besides, I don't see any of the Japanese auto companies asking for bailout money. The US automakers just need to make vehicles as good or better than the Japanese, and they'll be fine.

Look at all the mobile home manufacturers that have closed in the last 5 years. If the gov't wants to start bailing out businesses, maybe they should get some of the money as well!

And I'm sure we could all add to this list. . .

Mark

[Yanita]

Hi Guys,

ENOUGH of the bailouts...

Yanita

[Jim from Canada]

I'm anti bail out too, it's time to let the market decide who survives. Everyone has had enough time and has enough brains to figure out how to build a car that will sell.

Jim

[Harry]

Hi

Well the big 3 auto execs flew in to Washington DC on 3 private jets (est $20,000.00 each).

After grilling the execs the Senate decided to cancel the $25 billion bailout vote they had planned for Wed.

2.5 to 3.5 million jobs are at risk.

Harry

[Greg S]

The auto industry is really just the tip of the iceberg.
I doubt the bailout will prevent the underlying collapse of the economy and if provided will only be delaying the inevitable.

Wide spread bankruptcies and nation wide layoffs in all sectors will likely see unemployment rates at levels we can not even imagine at this time. Devastating.

[lefties]

no bailout here also!!! oorah!

[WildIrish]

Besides, I don't see any of the Japanese auto companies asking for bailout money.

That's because the Japanese government gives their automakers subsidies. Whether it's called subsidies or a bailout, it still amounts to Japan giving their automaking companies an awful lot of money.

One of the little-known facts about Japan.

[Harry]

Hi

Japan has not done bad since they were A-Bombed.

Toyota’s USA auto workers on the average with benefits make $35 per hour. GM auto workers with benefits make $78 per hour.

Toyota has five major assembly plants in Huntsville, Alabama; Georgetown, Kentucky; Princeton, Indiana; San Antonio, Texas; Buffalo, West Virginia; and a new one being built in Blue Springs, Mississippi. Toyota also has a joint-venture operation with General Motors at New United Motor Manufacturing Inc. (NUMMI), in Fremont, California, which began in 1984, and with Subaru at Subaru of Indiana Automotive, Inc. (SIA), in Lafayette, Indiana, which started in 2006. Production on a new manufacturing plant in Tupelo, Mississippi is scheduled for completion in 2010.

Harry

[Greg S]

Labour costs make up only 15% of the cost to manufacture a car.

The two biggest cost factors are Material - 50% and corporate structure - 20%.

Cutting wages and benefits is a short sited solution to the auto industries problems that will not have a significant enough impact.
Cutting the wages of all the middle class will have a more positive impact on the 50% material costs in the long term.

What is really required is restructuring and management changes in line with the foreign auto makers. This will impact everything including wages and benefits.

[Harry]

Yep

No doubt .... more major restructing to come....thru this economic crunch.

Harry

[Harry]

The big 3 are back in Washington this week with the plan and are now requesting $34 billion....immediately.

Some say this is only the first installment unless auto sales increase.

Harry

[shadow745]

Here's my take on it.... for years the "Big 3" dominated the auto industry and demanded high prices and paid their workforce too much IMO. Then along came the foreign guys. They could offer vehicles cheaper, comparable build quality, better fuel efficiency, etc. For years I heard my parents comment on "Jap traps, rice burners, etc" and now look at what has slowly happened. The foreign market has taken over bigtime and offers the best bang for the buck, best safety, best fuel efficiency, best warranties and now where's the Big 3? In Washington begging for money to bail them out. And for what.... so they can go right back and do it again..... Sorry to all you fellow Americans, I'd take a nice foreign ride over anything American anyday. Not being prejudiced, just going with the facts. Later!

[Harry]

Hi

I have no problem with foreign cars. Especially since we helped Toyota get to where they are today.

To my south the limestone mine is owned by Mexico.

Further to the south lots of land with dolomite and limestone is owned by a Swiss company.

The new mine to the north of me is owned by a Greek company.

The labor force around here is heavy Mexican.

My backup ride is Hyundai made in South Korea.

My underwear was made in Taiwan.

Like it or not we are indeed global….already.

Harry