Bailout Stalls; Chrysler Faces Uncertain Future With or Without Funds
Senate Republicans effectively drew a line in the sand this afternoon against passing a bailout bill for domestic auto companies. This halted any call for a vote today in the Senate, with plans to call for a vote slated for early tomorrow, Friday.
This comes on the heels of news this morning that a major automotive analyst reported that Chrysler would not survive the next year even if it receives funds from a federally backed bridge loan.
This could be a huge blow for Chrysler and the bailout as a whole. Democrats are asking Republicans to come up with their own plan so a compromise can be reached.
So what will happen next?
- Either a new plan will be introduced or the current bill will be voted on, most likely failing.
- Sen. Bob Corker, R-Tenn., wants GM to pay down its crippling debt and have all three domestics immediately reduce wages to be competitive with foreign automakers. These caveats could be written into new legislation.
- The bailout bill could also be revised to let a “car czar” determine which company would get funds — for instance, GM could still receive funds even if Chrysler didn’t.
- The bill could also allow funds previously sought by Chrysler to be distributed to auto parts suppliers who would be immediately affected by a Chrysler bankruptcy, thus lessening one of the big fears associated with the failure of any of the domestic companies.
- If no legislation passes, President Bush could still move to use other funds to help ailing automakers immediately.
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In the past I have rarely agreed with the CONS but on this very subject Thank God they have the brass to stand-up to my party. GM and Chrysler are bad for America and deserve to go out of business.
Amen
LET GM and Chrylser GO out of business no one wants there cars!!! keep ford alive and fix them up!!
Chrysler has been a lost cause since the last time it was saved by the feds.
people are finally realizing that a company that is a synonym for Avoid makes lackluster cars at best. let Toyota, Honda, or VW buy it up.
Chrysler has been a lost cause since the last time it was saved by the feds.
people are finally realizing that a company that is a synonym for Avoid makes lackluster cars at best. let Toyota, Honda, or VW buy it up.
I hate to sound rude, but it seems inevitable. You're all idiots. Yes, some of Chrysler and GM's vehicles aren't up the the foreign competition, but a loss of two of the biggest corporations in America would be devastating for our already lackluster at best economy. Before you go shooting your poorly educated mouths off, take an economics course.
John, what do you think an economics course is going to tell you about the current situation? You think the people who are both for and against the bailout haven't taken economics? I am for the bailout to an extent, but as with a lot of things people comment on, its just not that simple. Chrysler is not in the same boat as Ford or GM, they are a privately owned company. The management has cut and cut and cut in order to have something to have a company to sell in the end. They have put themselves in the place they are in right, much more than Ford or GM, Chrysler's whole MO is different. It is too bad that it happened but I have no faith in a private equity firm. Also just because they go bankrupt, it doesn't mean they go away. They can reorganize, and hopefully will be structured more efficiently. Didn't you learn that in economics? The improved business is what the whole bailout is seeking to accomplish.
I think Auto companies should declare bankrupt now and force change while they still have some green. Everybody will still buy cars and as long as they guarrentee they still be around. I personally don't think they have a choice now since the Senate stumbled. I am really more sympathic to the car companies then financial companies.
Letting Chrysler or GM go out of business will start a long economical depression. I don't think most people understand how many peoples jobs rely on them. I am a Auto mechanic so it affects me directly. I work for an independent shop, but if the dealers go under then the Mechanics they employ could take my job.
No offense Adam, but if you're even a halfway decent mechanic I doubt they would hire anyone in to take your job. I would only worry about that if I were a bad mechanic lol.