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Money | 11/18/2008 7:30 am

Detroit Bailout Reader Forum and General Motors 'Ripple Effect' Video

A reader forum on the proposed Detroit bailout
By The Staff at wowOwow.com

Remember the saying, "What’s good for America is good for General Motors"? This week, that notion will be put to the test as the heads of the Detroit automakers, each under extreme financial distress, sinking stock prices and showrooms full of cars that nobody is buying, meet Washington’s decision-makers to defend their request for $25 billion in bridge loans.

General Motors CEO G. Richard Wagoner Jr., Ford (F) CEO Alan Mulally and Chrysler CEO Bob Nardelli, as well as United Auto Workers President Ron Gettelfinger, are scheduled to be heard in front of the Senate Banking Committee on Tuesday, November 18, and the House Financial Services Committee on Wednesday, November 19. 

To help influence popular opinion, General Motors, which has claimed it will run out of cash by the end of the year, released a video on YouTube that uses words and images to describe a devastating ripple effect on the rest of the country if the Detroit auto industry was allowed to go under.

66 Reader Comments (so far…) Sign In or Register to comment

Delete This
PS: Sorry I meant US auto workers…my sympathies and prayers are with totally with you…unfortunately they are not with your fat, lying , scheming, myopic GM BOSSES who’ve f-ed over the system…so give it up already and no bailout money for your bloated, stupid pigs. It is easy to come up with an efficient automobile..the technology is there..you just are in league with the oil companies and staked your future on them instead of consumers….so FU!!! I buy and am thrilled with EU cars like MBZ/VWs/Jaguers….. again FU!!! AM so happy to see you fold. Bush-tax incentive supported SUVs when we needed anything but—you deserve your demise…your workers don’t. Tghey were true…you were a lie.
By Delete This on 11/18/2008 5:57 pm
Buh- Bye
well, that was just one too many FUs for me this early in the morning.
By Buh- Bye on 11/19/2008 10:39 am
C jay
I think my Wowowow response email wok me up, literally - I went to bed wondering how and when Americans in general are going “wake up!” The “fault” for this crisis we’re in must be laid at the feet of many, many humans who for some reason had brains that development into scheming, manipulative, gluttons, with a sociopathic “bent,” backed by a presumption of lofty connection with the creator - their own perceived bail-out. Yesterday, I visited my dentist to have a crown with post re-glued in: the bill $155. I nearly had a heart attack. Worse, when it happened and I phoned his after-hours line, I never received a call back. If such pompous idiocy continues, these blokes are going to find themselves without clients, customers, patients, investors. It’s coming down to that in short order. Blindly, those amassing funds off of others followed the Far-Right only because the discipline supported their feeding frenzy, their natural inclination to destroy everything around them with the least amount of effort and learning. Most of “them” haven’t read a book on any of the topics now concerning America, much less American history; I have asked them! We, in essence, are no longer dealing with educated masses, but a pseudo-faith-based revolution. (read Susan Jacoby). Nothing, absolutely nothing will stop this until the fat at the top is trimmed off, and we are all moved on to a more level playing field. Can our president-elect do it? Not without our help and cooperation.
By C jay on 11/19/2008 3:54 am
Charlie F
What Main Stream America forgets is that without jobs their will be no social programs. Without Jobs their will be no taxes. People think and this is a mis conseption that the Japanese vehicles are better. Wake up people they are made in America, but with non union labor, and no legacy cost. That is pensions & health care. We American who purchased imports because they were cool, or because we thought they were better had better wake up. The US auto industry make one hell of a car and I would put it up with anything I’ve own in the past. Like alot of people I’ve purchased my share of Imports and now have a Saturn and a Chevy in my driveway. The quality excedes anything I’ve had from Nissan or Honda. If the Big Three go down then shame on us for letting it happen. Our jobs will follow because we were to vain to think it could happen to us. “The Big Three will always be around”… well its time to wake up and smell the coffee and buy American or forget about the mortgage crisis. Without jobs we won’t be able to pay for them anyway.
By Charlie F on 11/18/2008 9:18 pm
Frannie Em
Well Charlie It is just that we have been down this road before with the Automakers. My neighbor switched from Toyota to a Saturn and she says she will never go back. I read a report that said several GM cars now get 30mpg. I don’t know which do or don’t. I never drove an SUV, nor would I. They have a couple of hybrid SUVs out now, but I don’t know what the mpg is. Being a small business owner, I don’t want to see anyone unemployed, especially around Christmas.
By Frannie Em on 11/18/2008 10:38 pm
Delete This
Well Congress yawned in the face of the Big Three today. Ted Stevens (Felon-Alaska) lost his Senate seat. And Cheney and Alberto Gonzales were indicted. This just keeps getting better and better.
By Delete This on 11/19/2008 12:01 am
Sandbee (FB) 54
I bought the imports not because they were cool or because I thought they were better, they were better and are still better, in price and in quality. I get much more for my money and it lasts much longer. I have a Acura Integra sitting in the driveway that has over 200,000 miles on it that still runs like a race car. And a little Hyundai that is 5 years old that I love. I drive my mother’s Ford or a rental American car and feel like I am in a boat, the body feels like it floating loose from the wheels. And I grew up driving Cadillac’s cause that’s what my dad loved. I have to go with what I am able to afford nowadays, my husband has health problems and I have had serious health problems so we are on a limited income and we can not be worried about providing the income for others, we have to be worried about our own. If they are going to help the “BIG 3” it is shame on the “BIG 3” for getting in the situation, not shame on us for not buying their products. And they better start making products that we all want and can afford in our driveways. Because they aren’t what I see there now.
By Sandbee (FB) 54 on 11/19/2008 5:01 pm
Mugsy Peabody
Did anyone think to ask Ms. Tomlin about this? I mean, wasn’t her dad an autoworker in Detroit? Seems to me like some union-busting going on here under the guise of pretending the economic mess of decades of ignoring the cues of Japan and Europe is something the workers had any control over. Would suspect the execs are doing okay, and probably have health insurance and roofs over their heads, etc….
By Mugsy Peabody on 11/19/2008 12:52 am
Rainbow Power
I put a response that fits this thread on the W. Buffet thread so I am cutting and pasting some of my response and carrying it to this thread. Here’ tis: After I heard that General Motors is paying a whopping $71.00 per hour wage/fringe benefit combination for each employee versus Toyota paying only $47.00, my opinion is General Motors absolutely SHOULD NOT get any of the bailout money ( my hubby doesn’t make anywhere near that amount yet we’re the taxpayer who will pay the bailout payback). Let GM reorganize in Bankruptcy and maybe the employees will get the message that wage cuts may be in order. I heard the GM employee union said they would not accept any wage cuts….how ridiculous is that…..one would think that having a job with a wage cut is better than losing a job completely. I know Mitsubishi in an Illinois downstate plant just accepted a significant wage cut plus some benefit cuts in order to save their jobs (down to $24.00 and $28.50 per hour wages)… although the Mitsubishi plant did cut out all but one shift, but the employees going into the contract negotiations thought the plant was closing. Yes it would be lovely to make $71.00 per hour for wage/benefit but maybe the time for trimming wages and employee belt tightening has come….just don’t depend on the taxpayer….if one business gets bailout, all businesses of any kind will want it…..catch 22 begins.
By Rainbow Power on 11/19/2008 5:42 am
Brooklyn Gal
Keep in mind that the $71.00 include health care which is a very important aspect for any employee. And, I am sure that includes their part in pension contributions too. And, without the bailout, those collecting a pension may lose the only income that is keeping their families afloat. Health contibrutions do take up a great deal of the total package, even with sub-standard HMOs. But I for one would fight the right to keep my health benefits too. Remember, these companies were making billions and it was only fair that the employees get their fair share since they contributed to that profit. As for Mitsubishi, you only state the wages. Do you know if that includes benefits? And if they do agree to a wage cut that results in their not being able to afford their current expenses (and I don’t know any auto worker who lives in high-priced neighborhoods) would they be forced to sell their house in a market where no one is buying??? That’s the real Catch-22. Have you noticed that in major cities, the cost of transit and other services will be going up, yet wages are not. It seems that everyone is getting hit in their pocketbooks when the pocketbook is near empty by government. Amazing, we didn’t start this mess, but are supposed to clean it up. So there I have to agree with you. Unions are not the enemy, but are becoming the scapegoat. I can say one thing about the Japanese from what I had heard—-and that is they treat workers with respect. Imagine if all industries did that, Norma Rae would not have had to stand up with that sign, women who were killed in the Triangle Factory fires might still be alive. People forget what horrors Americans faced without protections.
By Brooklyn Gal on 11/19/2008 11:56 am
Paul Buchanaa
NO AUTO BAILOUT!!! Why? Because MUCH OF (if not the majority) of the screaming for an auto industry bailout is coming from NEW CAR DEALERSHIPS around the country. THAT’S RIGHT…The same people who have been trying every trick in the book to screw us over for decades. Buying a new car without getting screwed is nearly impossible, and ENTIRE BOOKS and WEBSITES are devoted to helping buyers navigate through the onerous new car buying process. These dealerships are just this side of criminal in their behavior towards buyers and NOW they want US, the TAXPAYER, to give the auto industry a $25 Billion dollar bailout, so that they can keep all the salesmen employed. Let them go get REAL jobs. There probably are SOME scrupulous car salesmen out there—but I’ve never found one. Also, the BUSINESS MODEL of the auto makers is FLAWED, and THE BUYERS HAVE SPOKEN WITH THEIR WALLETS. That’s how free markets work. GM workers average $70.00 per hour in wages and benefits. Toyota is around $40.00. Do the math. These wage agreements are CONTRACTS the companies make with their UNIONS. They AGREED to pay that much, so why should WE—American taxpayers—be penalized to keep these unreasonably high wages in place??? In my world, car companies don’t get a DIME of our money. They won’t disappear (THAT’S JUST A SCARE TACTIC—like Paulson used in the 1st bailout), but they WILL have to restructure their business models and become smaller, more efficient, and more reasonable sized organizations. We in the AIRLINE industry took our medicine and agreed to a 30% pay cut. We never asked for government money. WE DIDN’T DESERVE IT, and neither does ANY OTHER INDUSTRY. IT IS IMMORAL and a FRAUD on the hardworking, innocent AMERICAN TAXPAYER. ONCE AGAIN—-NO AUTO INDUSTRY BAILOUT. If you agree with me…study the beautiful philosophies of Congressman RON PAUL for the PROPER ROLE OF FEDERAL GOVERNMENT in our lives. If you don’t agree…you probably work in the auto industry.
By Paul Buchanaa on 11/19/2008 8:43 am
Charlie F
Paul, Why are you so synical? You must have had a bad experience. I have had several bad experiences from the airlines yet I didn’t let it taint my view of the entire economic situation or the airlines. Grow up and take a chill pill Frances!
By Charlie F on 11/19/2008 11:21 am
Char Star
Well, auto-makers deserve a bailout more than Wall Street did! Wall Street gambled & lost on the “free market” & those banks should have just gone down—because smaller, more responsible banks, who were not bankrupt, would have taken their places. That bailout money was nothing more than a parting gift Bush stole from the taxpayers as a reward for his “base”, as he infamously called the rich in a speech he gave at a private ritzy affair once. Paulson used it to save his favorite companies (his own Goldman Sachs first) & the companies he’s gifted with the money used it to buy out their rivals—& at bargain basement prices. It’s a out & out swindle of the taxpayers. Nothing more. The auto makers ALREADY GOT—was it $25 billion?—right after Bush proposed his 700 billion bailout. Remember? Now they want more. We should only do it if its done like the Chrysler bail out was done—we have a big say in what they do to re structure & a big say in the fuel efficiency & the salary of the CEO’s & other management (lower, of course since they failed) & we get paid back when they make money again. Other wise, no dice.
By Char Star on 11/19/2008 1:31 pm
Dona Howlett
I haven’t read any of the other comments (which is something I always do before commenting) but I’m tired tonight and just going to make small comment………… After hearing that all the Big Shots arrived in DC by private Jets I wonder about their thinking………….whats the matter with those idiots. It’s no wonder they can’t succeed. They don’t know what it is to live like normal people. It doesn’t matter how wealthy a person is, if they lose their ability to communicate with the common man they are in trouble. How dare they ask us to bail them out………..I haven’t been getting any outrageous bonuses. I do understand we as a Country need to save the Automobile industry for the sake of all the workers and jobs. But our Congress better make sure they set stipulations on these CEO’s. If they give this Money outright they are backstabbing the Tax payers of this Country. If they continue in the same way they have for the past 15 years they will get the same outcome……….any idiot knows that principal. Either shape up or ship out…………..maybe they should just throw out all those Executives and start with a new progressive bunch of people who want to build more productive vehicles. No more receiveing our millions and then sending themselves off to retreats for a bonus. Get down in the mud they’ve made and work this thing out. Get us some cars that are not Oil dependent. If they can’t promise that, they shouldn’t get our money.
By Dona Howlett on 11/20/2008 1:08 am
Laurie Deer
Bailouts, Bailouts, Bailouts. Then the executives and CEO travelling on private jets to beg for money follow it. I think the economy would be right on track if these guys covered their own losses. Why does the consumer have to pay every time huge losses occur? First, it was the banks, then auto industry and now shipping cost because of piracy. Why is the public responsible for this? In the end, the consumer pays trice: once at point of purchase, next with taxes and then with their jobs, retirements and homes. Imagine companies had to swallow their own losses with their bonuses, salaries and benefits. Could you see them peddling sub-prime loans, inefficient automobiles or sailing into dangerous seas? It would be nice to read about a billion-dollar bailout of consumers for a change. Just had to get that off my chest.
By Laurie Deer on 11/20/2008 5:20 am