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Smart Shopper Stories from the Sales Frontlines
48057 messages, Last post on Dec 04, 2009 at 1:12 PM
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Replying to: driver100 (Dec 10, 2008 5:19 am) |
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Hope all the media reports it like this and quits lumping us in with the other two. THE AUTO INDUSTRY BAILOUT December 10, 2008 - 12:01 am ET UPDATED: 12/10/08 12:20 a.m. Agreement reached on $15 billion plan to rescue GM, Chrysler WASHINGTON (Reuters) -- The White House and congressional Democrats on Tuesday night reached an agreement in principle on a $15 billion proposal for bailing out U.S. automakers and forcing them to restructure or fail, officials said. Bush administration official and a Democratic leadership aide said the outline covered key points but final issues needed to be resolved and put in writing. Democrats have arranged to have the House of Representatives vote on a bill as early as Wednesday and send it to the Senate for consideration. President George W. Bush and President-elect Barack Obama were both urged by a key lawmaker to help rally support by Democrats and Republicans for the pending measure. "Bipartisan hard work has paid off," said Democratic Sen. Carl Levin of Michigan whose home state headquarters General Motors, Ford Motor Co. and Chrysler LLC. "I understand an agreement has been reached," Levin said in a statement. The bailout is designed to allow GM and Chrysler to avert threatened bankruptcy through March with short-term loans. Ford Motor Co. is not requesting immediate help but would like a $9 billion line of credit in case its finances worsen. The parties that negotiated the tentative deal agreed last week that the money would come from an Energy Department fund established in September to help Detroit make more fuel-efficient cars. Proof of viability The administration official said the negotiators satisfied the key White House concern in the talks that companies receiving aid obtain the necessary concessions and make other changes to prove they can survive and compete. In addition to providing loans, the proposal would force automakers to answer to a presidentially appointed trustee -- or "car czar" -- and make the government their biggest shareholder. The overseer will have powers to shape a restructuring of the companies, withholding further loans if progress toward a turnaround stalled. A major provision would permit the czar to recommend a bankruptcy restructuring if companies borrowing money fail to obtain the necessary concessions. Some Republicans wanted some sort of bankruptcy option included as an incentive for labor and other stakeholders to agree on givebacks. The administration still opposes a Democratic bid to force automakers to drop lawsuits against California and other states seeking to cut auto emissions and other greenhouse gases. The administration official said it was his expectation the bill will not succeed unless that provision is struck. Another issue raised by Republicans was the use of taxpayer money in the case of Chrysler, which is owned by private equity firm Cerberus Capital Management LP. During the talks, Democratic aides said the administration resisted a bid to hold Cerberus liable for repayment if Chrysler defaulted on any loan. It remains unclear if that matter still needs to be clarified. Filibuster scenario Democrats control Congress and were expected to be able to muscle a bill through the House. But it was unclear if Republicans could stop a measure in the Senate with a procedural roadblock that requires 60 votes to clear. "Ball is in the Senate Republicans' court," said Jim Manley, a spokesman for Senate Majority Leader Harry Reid, a Nevada Democrat. "There is no word yet whether they will give us consent." A spokesman for Senate Minority Leader Mitch McConnell, a Kentucky Republican, said he would decline comment until he saw the bill. An auto bailout has evoked competing emotions in Congress. Lawmakers fear if automakers collapse, it would deepen the U.S. recession. But many say market forces, not a government saddled with a record deficit, should determine their fate. There also is reluctance to provide another federal rescue in the wake of the voter backlash against Congress for its passage of a $700 billion bailout for Wall Street in October. At the same time, many argue that if Congress provided relief for millionaires in the U.S. financial industry, it should also help blue-collar autoworkers facing unemployment. A poll by CBS News conducted last week found Americans split on whether taxpayer funds should help automakers. But more than 65 percent said in exchange for any aid, the government should have a say in the automakers' management and require more fuel-efficient cars.
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Replying to: driver100 (Dec 10, 2008 5:19 am) No mental health issue? Uh.... a normal person does not do this!
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Replying to: fezo (Dec 09, 2008 5:52 pm) I was thinking last night about how some of the long time posters here seem to have become friends. Yeah, we fight every once in a while. But, overall I can say that all of you have made tough times just a little easier to bare. joel, while I don't think the "bailout" plan has enough teeth, it's probably a compromise we can all live with. If nothing else, the CEOs have received a big dose of well deserved humility. A month ago, their arrogance was just off the charts. Let's see if they keep their jobs. Let's also see if these companies can finally put themselves on sound product and financial footing. I think in the end, anything that restores confidence to the American public is a good thing. I only wish the financial markets would adopt a little of that humility. Right now, I don't have any confidence in any of them....that they're ready to do things that are right. The way I see this playing out, Chrysler has no choice but to merge, AT NO COST, with GM. Daimler and Cerebus have to take the bitter pill. It was their fault that they put chrysler in the predicament they're in. GM, as they've admitted (which is something Chrysler should do, also), needs to step up their quality, while providing products that people want. I think it's obvious that Pontiac is going away. Probably Saturn, too. Jeep may survive. Don't have much hope for the Chrysler or Dodge brands. Ford, as bad as things are, seem to be sitting in the best position. If they can right their ship, without tapping into the lines of credit, they'll be better off. Toyota has spent way too much time and energy trying to usurp GM. I don't think the worst times are behind them, yet. Honda seems to be staying the course. That's not a bad thing. All the rest, European brands, Korean brands....all of them are going to suffer along side the Detroit brands. Again, a little humility would go a long way in righting their ships if they want to continue success in the U.S.
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Replying to: isellhondas (Dec 09, 2008 6:20 pm)
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Replying to: richard64 (Dec 10, 2008 8:23 am) Joel, I think the longer this has gone on the more people are realizing that we are dealing with three separate entities and when they realize that Ford looks pretty good. I remember when Mulally mortgaged everything and I thought he was crazy. Guess he's smarter than me! Obviously Ford does buy into the idea that it's bad for them if the other two go down which is why they are supporting the package in Congress. Maybe the guy owned the dealership and getting the insurance on those cars was the only way he'd ever see the money..... Creative financing. |
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Replying to: richard64 (Dec 09, 2008 4:18 pm)
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Replying to: wlbrown9 (Dec 10, 2008 10:17 am) They are so slick in Cancun. When you get off the plane you see all these booths that say they are INFORMATION booths. You think it is a public service for free. They give you nice maps and brochures, they are all very friendly. Then when you say thank you they tell you all the maps and junk are $10 unless you go to a presentation which includes a buffet lunch...lol. Well, I'd rather pay 10 bucks than suffer through the lunch and fight off swarming sales people. The maps were worth the 10 bucks. 
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Replying to: m6vx (Dec 10, 2008 8:06 am) Uh.... a normal person does not do this! Exactly my thoughts. Unless it's a normal and common occurence in that city. 
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Replying to: driver100 (Dec 10, 2008 10:36 am) It's the site of what used to be a grand resort that people when to at the turn of last century for the healing properties of the "springs" (which smelled a lot like sulphur) that ran under and around it. The hotel was grand. And, they were planning condos, a golf course, and an entire vacation community around it. Well, "free" got my attention. And, although in the middle of the boondocks, it was within driving distance. Beautiful room in the hotel. Good meals and a "free couple's massage were promised. But, not until we had to sit through the "presentation". The rest you guys already know. It was a hard sell for a time share. Our sales guy did things like you guys have described. Telling me how my wife deserved to be treated luxuriously all the time....how we could imagine many romantic weeks of joy, fun, intimacy, etc. On and on he went. People ringing bells all the time when one of the sales people "closed" someone. Even had charts and graphs of how it was a good financial decision (I never made the connection). When I didn't crack, he focused on my wife. Long and short of it, she wanted it. I didn't. It was a frosty ride home, to say the least. I've been back since. Not as a time share customer, but just as a weekend getaway. It has tuned into something of a "destination" location. But, by the time you add in all the fees, the down payment, the yearly stipend, the monetary additions charged to change locations of their "worldwide vacation spots", the deal wasn't really a deal at all. |
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