Detroit 3 want more flexibility for federal loans

[davidlane]

Here comes the bailout! But then its been that kind of week.

The Detroit 3 CEOs are calling on congressional leaders to fully fund a $25 billion loan program for the industry and to change restrictions attached to the money that may impede its benefit for the struggling companies.

The requests came in a joint letter from the executives this week.

The three also held a series of meetings on Capitol Hill Wednesday, including a joint one with House Speaker Nancy Pelosi, D-Calif., and several chairmen of House committees.

Chrysler LLC CEO Bob Nardelli, in brief remarks to reporters afterwards, said the sessions were "very encouraging, very candid, very straightforward."

http://www.autonews.com/article/2008...809179983/1200

[tgagneguam]

I wish I could trash my credit and then go to lenders and have the audacity to dictate the terms of a loan I don't deserve in the first place. You at least gotta give the Detroit Three credit for having balls.

Take your low-interest loans with all the strings attached and be grateful, Detroit.

[Rocket 88]

A quote from the article:
"The energy law enacted last December, creating the low-interest loan program but not funding it, set a series of conditions on the money, which were not given much thought at the time, one high-ranking industry lobbyist said privately."


AMAZING! If a lobbyist says the "conditions" weren't given much thought I'm sure he's right. Crazy bill writers will just say anything.

OR

The Government intended to loan the money to the US Auto Industry to help them achieve goals like CAFE regulations and now GM, FORD and Chrysler are saying they just want the money to use as they see fit... because business is in the dumper which is of course no fault of thiers...

You be the judge, but I made up my mind in about a second.

I agree with TGAGNEGUAM. These guys have some set on them.

[steinravnik]

Originally Posted by davidlane

Here comes the bailout! But then its been that kind of week.

The Detroit 3 CEOs are calling on congressional leaders to fully fund a $25 billion loan program for the industry and to change restrictions attached to the money that may impede its benefit for the struggling companies.

The requests came in a joint letter from the executives this week.

The three also held a series of meetings on Capitol Hill Wednesday, including a joint one with House Speaker Nancy Pelosi, D-Calif., and several chairmen of House committees.

Chrysler LLC CEO Bob Nardelli, in brief remarks to reporters afterwards, said the sessions were "very encouraging, very candid, very straightforward."

http://www.autonews.com/article/2008...809179983/1200

Capitol Hill, eh? I live a few blocks from the Capitol. I wonder if I will see Wags.

[andy82471]

Sorry Big 3, beggers cant be chosers. Take it or leave it.

[member12]

They shouldn't even lend money to the big three. They have to learn to be more efficient...cut employees and cut pay, and spend the savings on more attractive products.

The Chrysler bailout worked so well.....duh.

[mgescuro]

Originally Posted by andy82471

Sorry Big 3, beggers cant be chosers. Take it or leave it.

I'll second that.

[texassierradude]

I suppose that all of the macro economic authorities that populate this site would feel that an $85 billion takeover of AIG, the previous bailout of Bear Stearns, the takeover of Fannie Mae and Freddie Mac, and the possible need to bail out Morgan Stanley, WaMu, et al, is in the public interest but a paltry $25 billion to Detroit is not. Why don't we just eliminate the manufacturing sector in this country totally? Send ALL the manufacturing off shore. Let's just forget the unfair trade practices that established the Japanese auto industry here. While we're at it, lets just send all jobs offshore. Then we won't have to worry about government loans or bailouts.

[texassierradude]

Originally Posted by tgagneguam

I wish I could trash my credit and then go to lenders and have the audacity to dictate the terms of a loan I don't deserve in the first place. You at least gotta give the Detroit Three credit for having balls.

Take your low-interest loans with all the strings attached and be grateful, Detroit.

If the Detroit Three have balls, then what do the Wall Street folks have? Matter of fact, isn't this what started the entire credit mess? Making sub-prime loans to folks that didn't deserve a loan in the first place with trashed credit? Oops, sorry, I forgot, its trendy to bash the Detroit Three these days.

[Klay]

Originally Posted by texassierradude

If the Detroit Three have balls, then what do the Wall Street folks have? Matter of fact, isn't this what started the entire credit mess? Making sub-prime loans to folks that didn't deserve a loan in the first place with trashed credit? Oops, sorry, I forgot, its trendy to bash the Detroit Three these days.

I agree with you man, I just don't get how some of the people on this site feel it is unfair for the Big 3 to get guarenteed loans. They will be paying it back unlike the actual bailouts of these large investment firms and banks. The taxpayers will make money (in theory, if it doesn't get blown on nonesense) off the loans to the big 3.

[Rocket 88]

Originally Posted by texassierradude

I suppose that all of the macro economic authorities that populate this site would feel that an $85 billion takeover of AIG, the previous bailout of Bear Stearns, the takeover of Fannie Mae and Freddie Mac, and the possible need to bail out Morgan Stanley, WaMu, et al, is in the public interest but a paltry $25 billion to Detroit is not. Why don't we just eliminate the manufacturing sector in this country totally? Send ALL the manufacturing off shore. Let's just forget the unfair trade practices that established the Japanese auto industry here. While we're at it, lets just send all jobs offshore. Then we won't have to worry about government loans or bailouts.

You can't justify bad government policy by sighting worse government decisions.

The bailouts are a lot worse - a horrible screwing of the tax paying public to save institutions from their own greed. Just like the Houseing bailout helps investors, but doesn't prevent most folks from loosing their houses.

Loaning money to the BIG 3 IMO isn't bad, but the funding was passed to help the industry meet future fuel efficiency requirements. The government has a right to say what they are loaning the money for.

Personally, I'm glad as hell they are trying to help GM, Ford and Chrysler at all. I'd be happier if they tried leveling the playing field a bit.
Its the least the Republicans can do afte the wonderful support they've shown Haliburton and the oil companies.

[wildgoosechase]

The alternative is for the big 3 is to downsize to the market size that exists in the US. This would mean pulling the plug on most US production and move it to Korea or China where they are profitable.

[Rocket 88]

Originally Posted by texassierradude

If the Detroit Three have balls, then what do the Wall Street folks have? Matter of fact, isn't this what started the entire credit mess? Making sub-prime loans to folks that didn't deserve a loan in the first place with trashed credit? Oops, sorry, I forgot, its trendy to bash the Detroit Three these days.

Dude, you can't say people with big balls don't have big balls because you can find people with ENORMOUS balls. Well... maybe you can. While I'm no expert on the sub-prime mess I thought the Banking industry where the pigs who caused this.

[kenman923]

If we the taxpayers are funding this, I hope the Big 3 give us our money's worth.

[eaton53]

Originally Posted by member12

They shouldn't even lend money to the big three. They have to learn to be more efficient...cut employees and cut pay, and spend the savings on more attractive products.

The Chrysler bailout worked so well.....duh.

The Chrysler bailout did work... the government actually made money off it. It's the stupid Germans that got them into the mess they're in now.

So, I assume you'd rather have the U.S. automakers fail, wiping out a bunch of suppliers and taking down the PBGC as well?