So far Rep. Ken Calvert is one member of the O.C. delegation who thinks the auto makers – particularly General Motors – need to use the bankruptcy courts and not taxpayer money to reorganize themselves.
The way GM is burning money right now,’’ Calvert said, any loan the federal government gives them won’t last long and “they’re going to be back again. It seems to me all three of the major auto companies have structural costs that do not allow them to survive unless they are able to change their entire business model and renegotiate how they’re doing business.’’
All three companies have submitted the plans Democratic congressional leaders demanded.
Calvert said he just got an e-mail from House Speaker Nancy Pelosi telling members they need to be back for a session on Dec. 8. She seems to be making good on her comments earlier today that she believes the government will step in to help the auto makers.
These companies “need strong medicine. They need new management. They really need to transform themselves,’’ Calvert said.
The Republican lawmaker didn’t slam the door on his voting for a bailout.
“I’ll look at it. I don’t want these guys to go down. Nobody does.’’
The ONLY way the US taxpayer should bail out these ‘private’ companies, is…
1) All the CEO’s, vice-president’s, upper management, and design-staff are FIRED, and their contracts that they had are null and void, and they ONLY leave with the shirts on their backs.
2) All of their auto unions are dismantled and eliminated!
3) All three companies MUST design and build an electric ONLY vehicle, and have it on showroom floors by 2010, with a price-tag starting at $25k.
bobbyc, you had me up to the third idea. There isn’t an electric vehicle yet that will tow my boat.
We have way too many fingers in the pie, and there is not enough pie. These guys need to think of the country as a whole, and not just of themselves, and that includes the UNIONS as well as the fat cat executives who are paid WAY TOO MUCH. No one needs $40+ million a year as a salary. It’s ridiculous. Why does the government have to bail our everyone? The national debt is out of sight as it is. So, a note to the Legislators (both state and national): CUT EXCESS SPENDING FOR THE GOOD OF THE STATE/COUNTRY AS A WHOLE! FORGET YOUR PET PROJECTS FOR YOUR DISTRICT! STOP THE BLEEDING! PLEASE!
Petition Congress:
http://www.rallycongress.com/no-bailout-for-the-auto-industry/1409/
NO BAILOUT FOR THE AUTO INDUSTRY
Nancy Pelosi, with the help of Barney Frank, wants to bail out yet another failed sector of the economy. It is not government’s role to reward incompetent, overpaid executives pursuing a failed and anachronistic business model. The American auto industry is in trouble because it produces a shoddy, polluting, gas guzzling product at noncompetitive prices driven by trade union benefit packages. It is a waste of taxpayer money to try to shore up an industry that needs to be radically restructured. The Big Three should be allowed to fail and file for reorganization under Chapter 11 of the Bankruptcy Code. They will not cease to exist, but will be restructured under the supervision of the bankruptcy courts. Congress cannot do a better job than the courts. The courts will supervise the reorganization of the industry without being tempted to reward lobbyists, campaign contributors and unions for their political and financial support.
Congress must allow the economy, existing laws and judicial bodies to resolve the Big Three’s financial problems and not throw more taxpayer money away under a hasty and ill conceived bailout.
As somone familiar with how the auto companies got to this point, I can tell you that the executive pay and perks pales in comparison with the union perks, benefits and health packages enjoyed by millions of union workers. Under the “old contract” workers were making $20/hr. 30 years ago. Many are now retired - in their 50’s with six figure retirement packages and healthcare for life. How is that for pushing a broom or turning a wrench. Currently, GM is $7 billion short in funding the benefits for current retirees.
Unions have killed the steel industry and are killing the auto industry and soon will kill the education system in Calif. where it is projected that in 8 years 100% of the Calif. education budget will go to retired teachers benefits.
No Bailout:
enough of the Socialist Republican, Bush economics!
Quit spending my money!
Build electric cars only, price starting at $10,000.
Sell your stupid boat !
Get out of Iraq!
35 years ago, i was working in a law office, we were filing for a
copy right for our client, he had invented and proved a cheap part for your car to save gas, 60-70 miles to a gallon, none of the auto makers, cadillac-ford-dodge- would buy it. they were working with the oil companies to sell more gas. just after the copy right came through, he died. he had tried to sell his invention for months previous to the copy right, now the car companies knew they should do something about the gas guzling car 35 yrs ago but didnt, now they want us to bail them out. they should of thought about it 35 yrs ago.