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Obama Disappointed by Auto Bailout Impasse

President-elect Barack Obama today issued a statement expressing disappointment with the Senate's failure to reach agreement on a temporary rescue plan for the auto industry. His statement follows:

I am disappointed that the Senate could not reach agreement on a short-term plan for the auto industry. I share the frustration of so many about the decades of mismanagement in this industry that has helped deliver the current crisis. Those bad practices cannot be rewarded or continued. But I also know that millions of American jobs rely directly or indirectly on a viable auto industry, and that the beginnings of reform are at hand. The revival of our economy as a whole should not be a partisan issue. So I commend those in Congress as well as the Administration who tried valiantly to forge a compromise. My hope is that the Administration and the Congress will still find a way to give the industry the temporary assistance it needs while demanding the long-term restructuring that is absolutely required.

By Web Politics Editor  |  December 12, 2008; 11:17 AM ET
Categories:  Barack Obama  
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Comments

Bank of America and Mr. Higgins missing $millions, It can happen to you, my fellow Americans


More info: http://mrhigginsbank.blogspot.com/

Posted by: srmaxhiggins | December 13, 2008 12:10 PM | Report abuse

Say,

How 'bout we give 12 billion dollars to companies like Tesla Motors.

After GM finishes it's slow motion death spiral there will be room for new American car companies.

Seems GM's North American plan is to suck up taxpayer dollars while voiding labor contracts.

Investing in the emerging new economy and companies that hire American workers is a better bet than throwing money at an idustry that has fought to be sloppy and lazy every step of the way. They've bought up or killed off competition for almost 100 years.

Some are hoping to bust unions. I'd be just as glad to bust the American car maker/oil monopoly.

Posted by: JohnQuimby | December 12, 2008 10:56 PM | Report abuse

Even those companies with manufacturing plants in the South use services, products, and suppliers from around the U.S. (as well as Canada and Mexico):

http://www.bmwusfactory.com/uploadedFiles/Factory/Manufacturing/Suppliers.pdf

Posted by: JakeD | December 12, 2008 6:48 PM | Report abuse

cont.

Subaru of Indiana Automotive, Inc. (SIA)
Current Toyota Investment:
$188.4 million

Toyota Employment:
1,000

Operations:
This is a collaborative agreement between SIA parent Fuji Heavy Industries Ltd. and Toyota Motor Corporation, with an investment of $188 million to produce 100,000 Toyota Camrys annually. Camry production at SIA began in April 2007.

Address:
Subaru Indiana Automotive, Ltd.
5500 State Road 38 East
Lafayette, Indiana 47905

* All data as of December 2007.

Designers. Developers. Suppliers and team members. From paper to pavement, all across the country hundreds of thousands of Americans are hard at work, coming together to develop tomorrow's vehicles today.

For more information on how their AMERICAN operations work, please see their 2008 U.S. Operations Brochure (PDF): http://www.toyota.com/about/our_business/operations/2008OperationsBrochure.pdf

Posted by: JakeD | December 12, 2008 6:34 PM | Report abuse

While TEMA was headquartered in Kentucky in 2006 (Investment, as of 12/07: $635.7 million, Employment: 2,996), Toyota also operates / employs AMERICANS in Alabama, California, Indiana, Texas, West Virginia, as well as Bodine Aluminum, Inc. (Investment: $565.6 million, Employment:
1,186):

Bodine Aluminum, Troy
100 Cherry Blossom Way
Troy, MO 63379

Bodine Aluminum, St. Louis
2100 Walton Road
St. Louis, MO 63114

Bodine Aluminum, Jackson
Airport Industrial Park
Jackson, TN 38305

Of course, feel free to call any of the AMERICANS who work at these location to complain about their jobs, or call the AMERICANS working at corporate headquarters:

Toyota Motor Engineering & Manufacturing North America, Inc.
25 Atlantic Avenue
Erlanger, KY 41018

Posted by: JakeD | December 12, 2008 6:30 PM | Report abuse

need4trth:

How many Americans do you think Mercedes, Honda, Hyundai, Nissan, BMW (we have an X-5), and Toyota are employing in those States?

Posted by: JakeD | December 12, 2008 6:21 PM | Report abuse

EACH SENATOR INSTEAD OF REPRESENTING.......


the USA's respective interest in his state is instead, representing, if you will, the foreign auto maker that his state is housing.....Rep Richard Shelby of Alabama is representing the interest of Mercedes, Honda and Hyundai, Rep. Bob Porker is representing the interest of Nissan in Tennessee, Reps. Lindsey Graham and Jim Demmitt are representing the interest of 2 BMW plants in South Carolina, and Rep. Mitch McConnell is representing the interest of Toyota in Kentucky. That's is really what this opposition to the bridge loans for Chrysler and GM is really about on the GOP side. They are interested in busting up the UAW and taking out 2 to 7 million USA citizens jobs so that they can further their political agenda by providing further cheap labor to foreign auto makers and supposedly providing jobs for their states while destroying opportunity for a living wage which the UAW and Ford GM and Chrysler would provide for citizens

Posted by: need4trth | December 12, 2008 6:01 PM | Report abuse


$20,000 or less....hell, why have I been filing???? ((( big smiles ))))

7 to 10 years, they are quoting, for recovery.
It may be wise to re-visit, re-evaluate, and re-calculate the equations they use for the GDP, GNP, and the FPL.
We are using equations that were written into the law 30 years ago.

Posted by: TheBabeNemo | December 12, 2008 5:37 PM | Report abuse

TheBabeNemo:

It's actually $20,000 or less. Many more above than get a refund of most of their federal income taxes.

Gator-ron:

I doubt we will see positive GDP until 2011.

Posted by: JakeD | December 12, 2008 5:24 PM | Report abuse

Jake D..
well heck, if they make less than 6,000 or something, they don't have to pay income taxes. So they come up with all these plans to "for the record" --only report $5,999.

However, valid point.

Those "poor people" (who didn't pay taxes) are probably using ripped off Social Security numbers too. Can you say "immigration issue"?
Man alive, I just got done with a temp "stint" in Revenue down here. You wouldn't believe the games that are played with the social security numbers.....

Posted by: TheBabeNemo | December 12, 2008 5:12 PM | Report abuse

Republicans wanted to do exactly what they claim government should do, regulate companies. The companies need to restructure and hardly anyone in the congress knows much about restructuring so why did they do such a dumb thing? This was the 2008 edition of the Terry Schivo case.

The bailout of the financial sector was poorly managed by Paulson, but that is no reason to be smarter with the car companies.

Although we are not out of the woods, there is a reasonable chance that the market is bottoming which means the economy would pick up in late 2009.

Posted by: Gator-ron | December 12, 2008 4:59 PM | Report abuse

Just passing by...

You know, this gives "Pimp My Ride" a whole new meaning.

Posted by: JohnQuimby | December 12, 2008 4:57 PM | Report abuse

Before the Bush cuts were implemented in 2002, the number of filers who paid no federal income taxes was 30 million, or 23% of all tax filers. Last year, 44 million people paid nothing (or got full refunds) and that's the highest number in U.S. history, up to 33% of all tax filers.

In addition to these 44 million zero-tax filers there were another 14 million whose incomes are so low, $20,000 or less, they are off the tax roles entirely.

We need to shrink government even more.

Posted by: JakeD | December 12, 2008 4:53 PM | Report abuse

P.S. if Bill Gates or Warren Buffet wanted to voluntarily contribute more money to the U.S. Treasury, no one is stoping them -- they want others to be forced into doing so -- that's my problem with it. Shrink government and get it off the back of hard-working Americans. That's what we need to do.

Posted by: JakeD | December 12, 2008 4:46 PM | Report abuse

Did I say that all people who are financially disadvantaged are so because they are of poor character? For instance, I agree that the cost of healthcare is a major issue forcing lots of good people into bankruptcy. Except for willfully self-inflicted conditions, those are otherwise good people. Socialized medicine will hurt them the worst.

Posted by: JakeD | December 12, 2008 4:44 PM | Report abuse

"JRM2:

Both Bill Gates and Warren Buffet paid more than a dime in federal taxes last year ; )

Posted by: JakeD | December 12, 2008 4:34 PM |"
---
Yes, two Obama supporters ;-)

Posted by: JRM2 | December 12, 2008 4:39 PM | Report abuse

"I meant INCOME tax ; )

Posted by: JakeD | December 12, 2008 4:31 PM |"
-----
Because if one is at a poverty wage then one cannot afford to pay income tax, what little money they can generate goes to basic sustenance, society and Government should have a responsibility in this.

Not all people who are financially disadvantaged are so because the are of poor character.

Posted by: JRM2 | December 12, 2008 4:38 PM | Report abuse

JRM2:

Both Bill Gates and Warren Buffet paid more than a dime in federal taxes last year ; )

Posted by: JakeD | December 12, 2008 4:34 PM | Report abuse

I meant INCOME tax ; )

Posted by: JakeD | December 12, 2008 4:31 PM | Report abuse

"TheBabeNemo:

You mean all the "poor people" who don't pay a dime in federal taxes?

Posted by: JakeD | December 12, 2008 4:27 PM |"
---
Don't forget the real rich ones who don't pay a dime either.

Posted by: JRM2 | December 12, 2008 4:30 PM | Report abuse

"What's next, JRM2? After socialized healthcare, will we be able to bailout the construction / home building industry? Department stores? Restaurants? Fruit vendors? Who is going to "bailout" a bankrupt U.S. government?

Posted by: JakeD | December 12, 2008 3:37 PM |"
------
Ok, I agree, we can't bail out everyone, point taken.

Re: Socialized healthcare. Has it occurred to you that if the burden of providing healthcare to U.S. workers is lifted from private companies that it will attract more business and let American companies become more competitive rather than shipping jobs overseas?

Posted by: JRM2 | December 12, 2008 4:29 PM | Report abuse

TheBabeNemo:

You mean all the "poor people" who don't pay a dime in federal taxes?

Posted by: JakeD | December 12, 2008 4:27 PM | Report abuse

JRM2:

Can we "bailout" ALL of these people too?

http://www.census.gov/indicator/www/m3/appendixb.pdf

Posted by: JakeD | December 12, 2008 4:25 PM | Report abuse

it has become
We, the Rich People
versus We, the Poor People...

This entire economic bailout (buyout) began 7 to 8 years ago.
We, the Poor People have been feeling the hits for a decade or longer. Didn't help.

It wasn't until We, the Rich People started complaining and raising holy hell to their elected officials (& Washington) about all the $75,000 to $150,000 "hits" they took this year.

When We, the Rich People started complaining......oh god, hold the presses,
Washington D.C. started doing something.

When "they" talk about "on the taxpayers' dime" (new catch phrase), it is on the We, the Poor People's dime.

Posted by: TheBabeNemo | December 12, 2008 4:22 PM | Report abuse

So we've made all the stuff we need for a while. Now we can cut back our hours and enjoy the fruits of our labor.

Yeah right.

The problem is that the real wealth we real workers created has all been taken by fake workers (A.K.A. executives, financiers, stockholders, insurance companies, lobyists, etc.).

Posted by: rooster54 | December 12, 2008 4:06 PM | Report abuse

I have to retract my statement about horse carriages. These are, indeed, American-made: http://www.buggy.com/instock.html

I think you got my point though ; )

Posted by: JakeD | December 12, 2008 3:46 PM | Report abuse

What's next, JRM2? After socialized healthcare, will we be able to bailout the construction / home building industry? Department stores? Restaurants? Fruit vendors? Who is going to "bailout" a bankrupt U.S. government?

Posted by: JakeD | December 12, 2008 3:37 PM | Report abuse

JRM2:

You only asked for any "good". I'm not here to argue whether that will outweigh the "bad". Long-term, I have no worries about America.

Posted by: JakeD | December 12, 2008 3:32 PM | Report abuse

The car companies' CEOs could take a lesson from the infamous Howard Hughes when he was involved with TWA.
Put YOUR own money into YOUR company.
But I guess the trophy wives need Botox, a new wardrobe, new car, and a Europe vacation each year. Heaven forbid if they must forego with those luxuries.
Don't forget the CEOs that got busted ripping off 401k(s) earlier in the decade.
Tyco was one and I remember the CEO of Tyco just had to have his 6,000 dollar gold leaf encrested shower curtain.

Take a loan on your 401k(s) folks. And do it now before you cannot do it any longer.
If you have 30,000 in, take a loan of 25,000---leave 5,000 in.
And if the company comes to you and says you can't...bingo....you've got a case.

Posted by: TheBabeNemo | December 12, 2008 3:28 PM | Report abuse

" America no longer manufactures horse carriages eithe"
JakeD
---
Because aside from a few vendor in Central Park and the Amish nobody uses horse carriages anymore, last time I checked I and millions of other Americans were still driving cars. My God Jake, for a guy who used to be a lawyer you don't make a very logical argument.

Posted by: JRM2 | December 12, 2008 3:08 PM | Report abuse

"The "good" would be that capital would be best used to seek its highest rate of profit. America no longer manufactures horse carriages either.

Posted by: JakeD | December 12, 2008 3:02 PM |"
---
The offset in financial damages would exceed the amount of the highest rate of profit.

Posted by: JRM2 | December 12, 2008 3:05 PM | Report abuse

JRM2:

The "good" would be that capital would be best used to seek its highest rate of profit. America no longer manufactures horse carriages either.

Posted by: JakeD | December 12, 2008 3:02 PM | Report abuse

"I say let the car companies go bankrupt!

Posted by: JakeD | December 12, 2008 1:05 PM |"
----
Sure, if we all were retired with our future firmly in place like you it would be easy to say that.

But we are talking millions of job losses here, financial catastrophe for millions of hard working families. What good could come out of America no longer manufacturing cars?

You think our cars are crappy now?, just wait until Ford is the last standing American auto maker with almost no American competition.

Posted by: JRM2 | December 12, 2008 2:59 PM | Report abuse

joelist: sign up with every temp agency you can. Work 10 to 25 of them at the same time if you can. Forget about benefits right now.

This auto bailout makes me harken back to William Demming (father of TQM) and the 1940s-1950s. When Total Quality Management was shunned by America. Demming took it to Japan, and look what happened.

Posted by: TheBabeNemo | December 12, 2008 2:32 PM | Report abuse

wapo9- go study the Constitution under what powers a President really has.

Then you can understand.
Presidents don't "work" with Congress.

Posted by: TheBabeNemo | December 12, 2008 2:30 PM | Report abuse

I voted for Obama and I don't think he can do much until he is sworn in as President .
I don't know what good a bailout would do .
These companies are not being run properly and because of this the Japanese have gained alot of market share . GM and Chrysler (maybe Ford eventually) will just keep asking for more and more money . Nothing will change and they will continue to lose market share to the Japanese . Meanwhile , my company has declared bankruptcy and I am looking for a new job-where is my bailout ?

Posted by: joelist | December 12, 2008 1:40 PM | Report abuse

If Senator Obama is so disappointed that the Senate couldn't pass the bailout, perhaps he should work with his fellow senators to pass a bill, and he should vote in favor of the bailout.

Whoops, he can't do that because he resigned so that he wouldn't have to make any difficult decisions until next month!

Posted by: wapo9 | December 12, 2008 1:30 PM | Report abuse

Posted by: JakeD | December 12, 2008 1:23 PM | Report abuse

the voice of main street....
what is the voice of main street???

I don't even believe, or think, that main street truly understands this all.
We have been hit too consistently in the last 5 years with too much.
People are in chaos/control theory and have no answers to what has happened.

We are in such a "rock and a hard place", that we all better start praying to whatever higher power you believe in.

Posted by: TheBabeNemo | December 12, 2008 1:13 PM | Report abuse


It is called transition and President-Elect Obama must be involved at this point.
God knows Bush doesn't care at all now.
He's busy pardoning and seeing what he can Executive Order over, so he "skirts" the law.
He's also busy buying houses in Dallas and taking his staff to the ranch for the next month to have parties.

They (Congress) can revamp this bill in a New York second and have another go around with it. And they know it.

GM is filing bankruptcy. Or at least talking to bankruptcy lawyers.

The House giveth, and the Senate taketh away.

Posted by: TheBabeNemo | December 12, 2008 1:10 PM | Report abuse

davidwayneosedach:

I say let the car companies go bankrupt!

Posted by: JakeD | December 12, 2008 1:05 PM | Report abuse

President elect Obama can be disappointed all he wants. He will not be running the United States until January 20th. Meanwhile, let the voice of Main St. be heard.

Posted by: davidwayneosedach | December 12, 2008 1:00 PM | Report abuse

It should be clear to even the least observant, that the GOP has (and since Eisenhower, has always had) Union busting, obstruction of all thing put up by DEMs, and pandering to the most ignorant segment of society, i.e. the religious right as their agenda. Period!

Posted by: lufrank1 | December 12, 2008 12:56 PM | Report abuse

Many of the self-serving Senators will be out next year. Maybe we can then start to accomplishing something.

Posted by: fred35 | December 12, 2008 12:52 PM | Report abuse

The Senate voted down the rescue loan for the auto-makers. Brilliant! What are they thinking?

The $trillions in bailout plans for the housing industry and the financial sectors were passed before the election. Now after the election, the party that lost the election voted against the relatively tiny $14 billion auto bailout. I hope it isn't political, that they want to make it that much more difficult for the next Administration to pull the country out of the abyss.

Because they can't be that stupid (can they?). Bankruptcy of even one of the auto-makers would be only the beginning of a cascading flood of bankruptcies across the country. Suppliers to the industry, having their payments for parts and supplies already provided to the automakers thrown into the trashcan by the bankruptcy, would have no choice but to stop paying their suppliers, and also declare bankruptcy. I don't know if the estimates of 2 or 3 million more jobs being lost almost immediately are accurate. But it would be a big number. Imagine what that would do to the just developing recession.

Surely something will be done.

Posted by: FutureJumps | December 12, 2008 12:37 PM | Report abuse

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