Auto Bailout Update: Morning-After Edition
In case you haven’t turned on the radio, TV or read one news website this morning, the controversial auto bailout bill failed in the Senate last night. That leaves a lot of people wondering about the future of the industry, the stock market (down 130 points as of 10:30 a.m. EST) and their cars.
Here’s what we’ve dug up so far this morning:
- President Bush is considering the use of TARP funds to keep GM and Chrysler afloat until a new Congress convenes in January. The entire auto industry and everyone with a stake in a deal are waiting on pins and needles for word from the White House. Update: The Treasury Department also says it will step in to "prevent an imminent failure."
- GM has hired bankruptcy counsel to advise it about filing for Chapter 11. The company is still against it, but wants to learn more and confirm that it would hurt sales to the point where no one would purchase a car.
- The Wall Street Journal says there is discussion that GM could force Saturn – which is still operating as a separate division — into Chapter 11 bankruptcy apart from GM as a whole.
- The Journal also says GM plans a new advertising campaign to get people out car-shopping again.
- GM may not renew its sponsorship of the Daytona 500 and the Daytona Speedway. They’ve been tied together for more than 30 years.
- Global markets were greatly impacted overnight after the vote. There are many doomsayers overseas about the potential loss of the Detroit automakers and it leading to a deeper recession worldwide.
- As of now, neither GM nor Chrysler have made official statements on last night’s vote.
- Honda will cut another 119,000 units of production in North America by March 2009. This is on top of previous cuts, now totaling 175,000 units.
- How many auto jobs does your state have?
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Congratulations America on making the right decision to not reward lousy management, inferior products, and a boatload of future lies masked as promises! GM must go bankrupt!
Without going in to details, like previous post...
I am glad that there is some common sense in Washington.
Dave,
Would you mind going a little more detail as of what is happening with the Honda's cut?
Honda is cutting production, just like Toyota, to meet expected consumer demand. Unlike the Detroit three they don't need to beg for tax payer dollars as they have their act together.
Yes, they don't have to beg because they already get it from their governments.
The Japanese do get government sponsored health care IN Japan but they also pay much higher taxes. If anything the pathetic Detroit three that have the advantage. Try not to be too ashamed driving around in a Detroit embarrassment. Now get back to your begging.
Bear in mind, the Senate is a completely unrepresentative body that gives small states disproportionate power. (Of course, that was its intent.) No matter. When the whole economy of certain states comes crashing down, and the ripple effects are seen throughout the entire country, we'll have taken the relevant names and they will be punished in one form or another.
How about we just add a check box on this year's 1040 form? If you check it your taxes go up and the money goes to the big three. For people who think it's such a bargain and a great idea, have a blast. And the rest of us won't have to pay for it.
Or, how about this? Why not have the state governments of Michigan and Ohio bailout the companies? If the goernment bailouts are such a great idea, surely they have enough votes in THOSE states? Why are you trying to suck money from tax payers in completely unrelated states?
Until tax payers in Michigan start suggesting to write me large checks for no reason whatsoever and start overpaying me for poor a work ethic; I'm not inclined to help. I'd rather donate money to more deserving causes then overpaid spoiled machinists, thank you very much.
Aaron,
I'm not a huge fan of bailouts either, but unfortunately, there are no states that are unrelated. The consequences would be felt everywhere.
Broq