Bailout Watch 46: "The Odds Against Automakers and Suppliers Getting Federal Low-interest Loans Just Got Worse"
Published: September 15th, 2008
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So proclaimeth our good friends at Automotive News. They report that “The director of the Congressional Budget Office says the cost to taxpayers of a $25 billion loan program probably would be about $7.5 billion — about twice earlier estimates… Worsening credit conditions mean 30 percent of the loan total may be needed.” Like that’s going to make a difference. But the way GM’s spinmeister handled the news is revealing, in the usual denial is a river in Africa sort of way. “General Motors spokesman Greg Martin said today that the budget office director’s observation is not a formal cost estimate. ‘We know we have our work cut out for us,’ Martin said.” Yeah, getting Uncle Sam to get the tit out can be such a hassle.
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monkeyboy I just don't understand all this bailout crap. Please, try doing some cutting in the office! Before these companies get any assistance from me, they need to start fixing their own businesses. Once I see that they are trying, then perhaps some help. If lending support will result in the rediculous pensions being unaddressed, or continued duplication of white collar jobs...forget it. I am not going to help my brother-in-law sit around and watch TV while getting 60 percent of his Chrysler salary! He's not even 50! Before I go around asking my neighbors for money to help me pay my bills, I would get rid of the cable TV in everyroom (well, not in the bathrooms!), create a budget for me and my wife. Get rid of a few cars...OK, maybe keep the cars and get rid of the kids and dogs. But I would make an attempt to do the job myself. GM alone should only have half the cars they have. Corvette, Malibu,Impala,LaCross,Enclave,Solstice, G8, VUE,9-3,CTS, DTS. The rest is duplication or junk. Keep these and introduce better and more competitive cars. The Cruz look promising...but its getting late. CTS wagon looking good. VUE 2 mode...looking great. But show you are cleaning your own house first!
I think we should fight just as hard against the bailout as GM fights their customers to fix the problems with their cars. If you think this is a problem relegated to the 80's, you are vastly mistaken. GM and their dealers are still in the business of making below par vehicles and shafting customers who buy them. Just ask the people I work with who bought GM products, for the last time.
I work with people who tow trailers to the dunes and boats. And they're vastly content with the product. They also race and drive to work. Maybe it's that like minded seem to coagulate. Like any occupation.
Ironic - we have to pay whether or not we get or want a car