California AG says feds may have to bail out US automakers

[1931Chevy]

http://www.autoblog.com/2007/05/16/c...us-automakers/
Of all people and of all places. Normally, California is the state that launches all sorts of initiatives that drive carmakers into a frenzy. Now, The Golden State is the one asserting that the national government might need to drop a few billion large to save The Big Three -- with a few left-handed compliments to go with it, of course.

Jerry Brown, the California Attorney General, said "The American auto industry is in deep trouble and they may require subsidies. They may have to be bailed out by the federal government that has just enabled their inefficiency and their gas guzzling." It's an intriguing position, because essentially, what he's saying is that the government that has allowed American car companies to be profligate with natural resources must now bail them out because it has allowed them to be profligate with natural resources. Twelve states are suing the US government over federal fuel efficiency standards, but Brown is then asking the government to bail them out if there are drastic penalties to pay or changes necessary for those automakers to enact. Brown said "The auto companies are in such a mess, because they persistently refuse to build fuel-efficient cars, that they might find it financially impossible to do the right thing. If that proves to be the case, I think Congress has to look at ways of helping them."

The case won't be decided for some time, but the NHTSA says that is out to balance "economic practicability and technological feasibility," and that it is more concerned with energy conservation than environmental protection. At heart, while it looks like Attorney General Brown wants to do the right thing -- who's the piper, and who's really responsible to pay?

[King Riffle]

Other governments support their industries, I don't see why ours shouldn't. It would be embarrassing for the U.S. automakers though.

[Smellhound]

Originally Posted by King Riffle

Other governments support their industries, I don't see why ours shouldn't. It would be embarrassing for the U.S. automakers though.

I don't like direct bailouts though, the money has to come from somewhere. Well at least if you are going to help a US industry, do something that helps ALL us industries. If need be, devalue the dollar versus the yen much more than already has occured. Not only will this help the U.S. Automakers, but will help other US exporters...but the inflation it causes will at least remind is all that nothing comes for free.

I just hate bailouts targeted at people or industries who, to a large part, got themself in trouble. Help them, but not at the expense of others in our country.

[TexZR2]

You dont need to give money to the domestic car makers.. what needs to be done is have the duties and taxes raised on foreign car makers. Do what their countrys of origin do to our exports. Phuck playing nice and getting bent over.

[Butz]

Twelve states are suing the US government over federal fuel efficiency standards

Only in America!

[yoblues]

We are talking JERRY BROWN here. What time is the space ship leaving?

[M_RABID]

Originally Posted by TexZR2

You dont need to give money to the domestic car makers.. what needs to be done is have the duties and taxes raised on foreign car makers. Do what their countrys of origin do to our exports. Phuck playing nice and getting bent over.

HERE HERE!

[01cavalier]

Originally Posted by TexZR2

You dont need to give money to the domestic car makers.. what needs to be done is have the duties and taxes raised on foreign car makers. Do what their countrys of origin do to our exports. Phuck playing nice and getting bent over.

I have to agree with that!

[Havasavana]

Many economist types think Ford and GM will likely be forced to file bankruptcy, and, as Wagoner has said, the customer reaction to a bankrupt auto company will be far different than their reaction to an airline in bankruptcy. Since Honda, Toyota, etc. don't have the capacity to provide the products needed, some means would be needed to keep things going. I see W has found his 'war czar' so many he can start looking for a car czar. Looks like Wolfowitz will have some time on his hands soon so maybe he's a candidate.

[DuSpinnst]

US Companies need some sort of help with Healthcare from the Feds.

Nothing major, but everyone should get catastrophic care (emergency Hospital visits are covered). Retirees should get slightly more coverage (basic preventive care/prescriptions), especially veterans (who IMHO should get free health care for their service).

[Xenon]

Bailing the big 3 out would make the situation worse imo.

[Xenon]

Originally Posted by TexZR2

You dont need to give money to the domestic car makers.. what needs to be done is have the duties and taxes raised on foreign car makers. Do what their countrys of origin do to our exports. Phuck playing nice and getting bent over.

Do that, and global sales of the Big 3 will slide (Other countries will do the exact same thing to US made cars), and some people will still be willing to pay the extra money for a import. Not exactly helping things.

[WannabeRich]

Originally Posted by yoblues

We are talking JERRY BROWN here. What time is the space ship leaving?

Governor Moonbeam as I recall from my days growing up in the golden state.

[prowlerjc]

Originally Posted by Xenon

Do that, and global sales of the Big 3 will slide (Other countries will do the exact same thing to US made cars), and some people will still be willing to pay the extra money for a import. Not exactly helping things.

I don't think US built cars are setting the world on fire, saleswise, outside the US, are they? I can't see much of a negatve impact.

[Havasavana]

Originally Posted by DuSpinnst

US Companies need some sort of help with Healthcare from the Feds.

Nothing major, but everyone should get catastrophic care (emergency Hospital visits are covered). Retirees should get slightly more coverage (basic preventive care/prescriptions), especially veterans (who IMHO should get free health care for their service).

It'll come at some point, and it would make sense to do it now while we still have some manufacturing here. As to veterans, I'm a vet and I don't think all vets need free health care. But those who have ANY kind of serious injury should absolutely get free health care. And if they are significantly disabled, they should get what it takes to have as close to normal life as possible. If they can't work, they should get a free house, transportation when they need it to where they need it, etc.. If we acknowledged the terrible cost these people pay, we might be hesitant to expose people to this fate.