Ford offering employee pricing, auto bailout bad for America on clarkhoward.com

Ford is offering employee pricing to all customers because they can't get people to buy their SUVs and trucks. People often wonder if employee pricing is real. It is the real deal. The idea behind it is to reduce existing inventory before the new models come in.

The employee pricing is good on almost all Ford, Lincoln and Mercury 2008 and 2009 models -- from now until the first week of 2009. The only vehicle not covered is the Ford F-150 truck, which was once the most popular vehicle in America.

In related news, the auto bailout has a flat tire at the moment. That's good news for our country -- when you view it from a vantage point of sound economic principle. In short, it's a lousy idea to bailout industrial corporations.

There will be another big push for the automaker bailout when Obama comes in, but Clark hopes it doesn't happen. Not because he wants people to suffer and lose jobs, but because our country suffers when you bailout a company that made too many bad decisions.

Want proof of that statement? Read the New York Times' piece about the outcome of England's $16.5 billion of automaker British Leyland back in the '80s. Leyland ended up failing anyway and all that taxpayer money went down the toilet.

Meanwhile, other industries are lining up at the bailout teller window looking for a handout. We have to do more than just draw a line in the sand -- we have to stand up as a country and say "no more."

Think Clark is a hypocrite for opposing an automaker bailout, yet begrudgingly supporting one for Wall Street? You've got to realize that, as we see in the latter example, capitalism needs capital to function. But that's a far cry from bailing out a private industry.

What others are saying

Hi
Hi,
All the customer should aware with their rights.

kim

Used Cars
By kim1987 @ 02/19/09 02:29:42 AMreport abuse
Wall Street Firms are Private Industry Too
Clark distinguishes the Wall Street firms from the automakers because the automakers are a "private industry?"

What are/were these Wall Street firms? I am unaware that these banks, investment houses, etc were anything but "private industry."

Now one can argue that their function is more critical to the economy, but the Wall Street bailouts still amount to a handout to "private industry."

What Clark is saying is that one type of private industry is more valuable than another; again, a defensible argument. But let's not obscure the facts by drawing a false line of demarcation.

Let's also realize that if we allow the auto industry to fail now, the consequences would be catastrophic. Can anyone maintain otherwise?

Imagine the day one of these car companies goes under...the stock market craters, and then we see waves of unemployment hit. This doesn't save taxpayers any money, since we now have to absorb more payouts for unemployment insurance, the pension guarantee programs, etc.

Bailing out the auto makers can work if proper conditions are attached; however, there is one option worse, and that is letting these companies fail at this point in time.
By Just A Thought @ 12/07/08 04:46:34 PMreport abuse
Bailout
How hard is it to see that the common denominator in this mess is the UAW?!!!
By Michael @ 11/23/08 03:51:05 PMreport abuse
Big 3 Auto Bailout...
There are executive pay excesses at every major Fortune 500 corporation, not just the Big 3. They are paid to 'manage' the financial results of their businesses. They get paid more if the business does well. The UAW has tied the US auto industry in knots and added excess cost to the mfgrg of the vehicles for decades. There has been inept management in place for years. It takes 2-3 years minimum, maybe more, to turn the corner on new, unique, adaptive designs. Kinda like developing a new vaccine...all of which costs money. Some of the airlines have survived bankruptcy, some have not. A bail out is not the answer. A bridge loan may be. For sure, Detroit is getting it's proverbial butt kicked, by the Asian mfgrs. They can re-work themselves into leaner, more efficient businesses via Chapter 11. Lots of businesses do it. At the end of the day, greed and power will and have bring them down, unless they are right sized. Getting out from under the existing union contracts is absolutely critical to reducing their cost base.
By Allen @ 11/21/08 08:49:52 AMreport abuse
Bailout
I agree 100% with Clark - there was poor management on all sides, the "BIG 3" allowed this to happen. They could have stood up to the unions, they could have followed the patterns of the foreign automakers in providing a quality product with minimal labor. To bail them out is just one more step towards socialism. It is time for America to stand up and say we are not taking this anymore without a fight.
By Anna @ 11/20/08 10:49:48 PMreport abuse
No Bail-Out, Sell the Lear Jets
All came in their private lear-jets. Let congress ask each one if they would sell their Lear-Jet today and ride "Grayhound" back to their homes!!!
By Mike @ 11/20/08 10:03:03 PMreport abuse
NO Bailout
With union workers with the big three auto makers making with benefits over $70/hr. and Toyota workers making just under $50/hr. including benefits something is seriously wrong. Detroit isn't making a car we Americans want so giving them a loan to continue making cars we don't want is crazy.

Secondly, the CEO, FEO, Pres., Board of Directors and etc. all need to spend a little time behind bars. That also goes for the Wall Street bunch as well.
By JWM @ 11/20/08 06:26:39 PMreport abuse
bailout
Nope, "they are deserving of what they get", "the worm has turned" The big has screwed their own customers for years and now its time for them to get the drive shaft.
By william @ 11/20/08 06:20:50 PMreport abuse
Auto bailout
I say No to the bailout. The big 3 need to downsize to become more effective. They need to re-negotiate the Union contracts that pay the workers far too much in terms of pay & benefits compared to the average worker. Plus they need to trim out management's ranks as well though both layoffs & salary reductions. They also need to shed the excessive dealer network & concentrate on building what Americans need, not what some people want (trucks & Suv's). I work in the auto industry and we went from a defined benefit to a defined contribution retirement plan long ago. The UAW needs to wake up & smell the roses if they want to remain in business
By Scott @ 11/20/08 03:14:26 PMreport abuse
GM Bailout
If your livelihood depended on a pension check from GM would you feel this way? GM is not the only company who has made unwise decisions. What about the Oil Companies etc?
By Retiree @ 11/20/08 02:10:14 PMreport abuse
Bailouts and work ethic
If I pay you more, will you work harder and better? Don't count on it!
By TO @ 11/20/08 01:06:07 PMreport abuse
Auto bailout
Thankyou Clark, I AGREE !
By Dan Curtis @ 11/20/08 12:52:52 PMreport abuse
GMAC applys as bank holding company
Now General Motors Acceptance Corporation, the largest lender to General Motors Corp. car dealers, has applied for status as a bank holding company. This is just what American Express did recently and once they were approved they requested funding from the taxpayers.

These handout have to stop.

They will try any approach to get the 25B which they are not deserving of. If they ran there business properly they would not need the 25B. I recommend we do not approve GMAC's request nor the 25B by the big 3, I would rather see all 3 file for bankruptcy and restructure. Also get rid of the highly paid management.
By Mikey @ 11/20/08 09:55:33 AMreport abuse
auto industry bailout comment
No one is bailing me out each month,when i try to figure out,how to balance my buget! Gmac repo'd on me years ago,and they did not bail me out! We keep pouring tax payingmoney down the toilet,how abought helping me out! Even an idiot knows,that "you build a house,from the foundation,and not the roof". The government needs to stop bailing period,let bad decision suffer when bad consequences,for they got paid big time and still get golden parachutes,when they bailout and run and hide! We need to throw them out the airplane and keep the chute! The auto industry has had over 50+ to get it right,with better gas mileage,safety,and profit. If they want help,then have them give back all of the money,that i have spent over the years on lemons,jack up interest,overpriced repairs,overpriced warrantys,bad customer service,repo extra jack up charges,being humiliated,and talked down too. I could go on but ,you get ,the point. let the enconomy rock and roll,until the crooks go out of business,and decent people start up ,new ones,for that's suppose,o be the quote unquote:american way......
By mr.johnny giles,jr. @ 11/20/08 07:23:10 AMreport abuse
No more bail outs!!!
No bail outs for the unions!!!!! Let them go bust!!!! Let the unions go to Acorn and ask them for a bail out. The auto makers need to make better cars that are more fuel efficient and affordable to buy and not big gas guzzlers!!!
By Change auto 3 or good bye @ 11/20/08 06:48:28 AMreport abuse
The Auto Industry
First there are way too many cars in America! If we as a country would take care of what we have, we could use the vehicles already on the road and in sales lots FOR THE NEXT 25 YEARS +++. This would actually create more tech jobs to keep these vehicles running. The main vehicles that should still be selling is alternative fuel, power vehicles. Think out-side the box. Keep what we have working for now, and invest in other ideas that would free our dependency on fossil fuels. This would also create new jobs.
By Jeremy @ 11/19/08 11:41:25 PMreport abuse
bail
dont give a deadman my turniquit when I need it for my bleeding!
By rob @ 11/19/08 11:19:42 PMreport abuse
Auto Bailout
I watched the Senate Hearings tuesday, and after hearing all of that foolishness, I say don't bail them out. Three Reasons: 1. the average american really can not afford the over priced cars(that's part of why we are in the situation we are in) 2. most of our credit scores would not let us qualify for a loan 3. The cars are over priced.
By Mark @ 11/19/08 10:48:39 PMreport abuse
Goodbye Big 3
Any money given to them will be wasted. They will all 3 go under and have to file Bankruptcy. They can't just start producing better and different vehicles tomorrow. It takes years or retooling, re-design, etc...to get a new car out that can compete with Toyota, Honda, etc...Don't throw billions at these dinosaurs.
By Wade @ 11/19/08 10:07:17 PMreport abuse
loan, not bailout, sure
Detroit MO for years was planned or some say "engineered obsolescence", cars that only lasted 60,000 miles. That way of management and thinking has brought them to their knees. As a Nissan owner I say goodbye...My 1991 4 cylinder engine has 314,000 miles...How you like that Detroit?
By Car Al @ 11/19/08 09:55:10 PMreport abuse
bailout
Each of the Big 3 CEO's flew to Washington this week to ask for a taxpayer bailout. How did they get there? Each one took their company's PRIVATE JET. At the estimated expense of $20k per flight. They could have flown commercial for $500 or so. And they didn't even consider "jet-pooling" in from Detroit, which would have at least saved $40k. It is that attitude that explains the state of their failing companies. NO BAILOUT!!!!
By HHS @ 11/19/08 09:54:50 PMreport abuse
bailout
Seems like they fired all the union traffic controllers and had people lining up big time to take their jobs. They need to clean house. The unions have sucked the auto industry dry.
By mreed @ 11/19/08 08:31:27 PMreport abuse
Ford Bailout
Ford was warned of this so many years ago, They should have tried to compete more with the demand of economy cars.
By Jeff S. @ 11/19/08 07:58:53 PMreport abuse
Let them file bankruptcy
I recommend that they negotiate with the Union, reduce union cost and eliminate many of the high paying union positions, in addition, recommend that the CEO's of the Big 3 take a walk and get some new blood running the businesses.

If congress approves the 25B bailout for the Big 3 then all large corporations in America should also be entitled. Just because a company is mismanaged for many years does not entitle them for government bailouts, let all three file bankruptcy.

Then the Big 3 would potentially be run leaner and meaner and will show a profit.
By anonymous @ 11/19/08 05:30:53 PMreport abuse
why bail them out? nobody buying their cars to begin with. so what make they think that people would buy their car after the bailout?
By tim @ 11/19/08 04:22:04 PMreport abuse
auto industry
Unions aren't the problem. They're the only thing bringing folks health plans, retirement plans, a decent wages. Our international automakers who sell here subsidize or have their nations provide these benefits, just as they do with other industries. Until these are equalized, you can't compare them. It isn't the workers, but the management who haven't adjusted their models, quality, and mpgs to fit the public. Those countries without energy have already adjusted, our management are the laggards.
By patrick @ 11/19/08 02:52:06 PMreport abuse
auto industry help
This is not a "bailout" but a loan with negotiating teeth. If we can spend this much in a week in the Middle East with no return and an incalculable amount on Wall Street including bonuses for execs with no strings and no visibility and no help for homeowners, then I think we can find it in our budget to help our manufacturing industry - getting a better product and result.
By patrick @ 11/19/08 02:45:54 PMreport abuse
The UAW is to blamd for Detroit's demise.
The Detroit auto bailout should only occur if all UAW contracts and obligation can be canceled. The United Auto Workers and their union is what destroyed these companies. Money that should have been spent on innovation, quality or making cars cost effective was sucked away by UAW benefits.
By Tom Smythe @ 11/19/08 12:47:58 PMreport abuse
They already get tax bailouts - no more
I agree that this is a bad idea. They already get tax subsidies/credits from the government.It's time they truly re-evaluate their business.
By MD @ 11/19/08 12:47:12 PMreport abuse
Bailout
If we bail them out, then what makes them want to change the way they compensate the top people or the terrible union contracts they have. They will just keep doing business as usual and fall farther behind the other car manufactors.
By Mike @ 11/19/08 12:10:02 PMreport abuse
bailouts are nothing new
I along with most others on this post feel this is not such a great idea. Letting the big 3 downsize natually is probably the best thing. These bailouts are nothing new, look at beach renourishment. The gov't spends billions every year to try to protect multi-million dollar beachfront homes and their demise is inevitable. Stop wasting money and let them fall in the sea!
By city planner @ 11/19/08 12:10:00 PMreport abuse
Auto Bailout
They need the bailout to free themselves of the shakles put on them by the Unions. They need to be on the same level playing field as the others producing cars in the US. That way they can resume their rightful position as the world leader in manufacturing.
By Bob Townsend @ 11/19/08 12:01:07 PMreport abuse
auto bailout
We should not give any bailout to a big private business Why not give every American a $ 10,000 government rebate. People will buy cars. Factory workers will keep jobs.Money will circulate again.Probably too simple. Execs won't gety their hands on it.
By kathy @ 11/19/08 10:19:12 AMreport abuse
Big 3 Bailout
If we approve the 25B to save the Big 3 from their bad decisions that they have make over the years then why not allow every company in America 25B also.
By Mikey @ 11/19/08 09:57:23 AMreport abuse
you people better wake up
Letting the auto industry die is going to signal the death of this country. The US will no longer have the means to produce for the world, or produce the goods it has to defend herself.

Most of the suppliers will quickly follow, pulling the remaining companies down with them. How does a company function in Chapter 11? They get money via bridge loan while their debt is reorganized. The last time I checked we were still have very shaky credit markets. How productive will any company be without money to make the payroll? Wake up people!

The Big 3 goes down, mark that date as the end of our country as we know it. We have to give them money, but put some VERY BIG STRINGS attached to it.

Jobs bank - gone.
100% pay on shutdown - gone.
Senior management - gone.
Board of directors - gone.
Employees contributing zero to retirement - gone.

But don't worry Clark, at least you can live on water...oops, Atlanta imports that too.
By Steve @ 11/19/08 08:57:30 AMreport abuse
Bailout
I wholeheartedly agree with NOT supporting a bailout of the 'Big 3' -- but what happens to all those retirement accounts/401k funds that are holding large blocks of what will then be trash stocks? Won't those accounts take a real beating if the automakers go belly-up?
By Big 'E' @ 11/19/08 07:58:01 AMreport abuse
Governm
Company I woked for laid me off. Lost my house to foreclosure. GMC truck needs 2 k in repairs. If gov't bails out big Auto when they made bad decisions. Do you think I will pay taxes. Glad we have 2nd Amendmant right still. Writing is on the wall "When people fear the government there is tyrrany, when government fears people there is liberty." Thomas Jefferson
By Soothsyer @ 11/18/08 08:13:20 PMreport abuse
What a great deal - NOT!
I wan't the laid-off, my company is bankrupt, ex-employee pricing. Ford and GM (Chrysler's already dead) need to dry up and blow away. Their ashes will fertilize new and better companies that can operate in the 21st century.
By Freddy @ 11/18/08 04:33:13 PMreport abuse
No More Bailouts!
Your right Clark! No more bailouts! What an unAmerican concept!! Isn't American suppose to be about free markets????? The big three have been making crappy cars for years. Let them all go down the toliet.
By patdesign @ 11/18/08 04:31:20 PMreport abuse

Hi,
All the customer should aware with their rights.

kim

Used Cars

By kim1987 @ 02/19/09 02:29:42 AMreport abuse

Wall Street Firms are Private Industry Too

Clark distinguishes the Wall Street firms from the automakers because the automakers are a "private industry?"

What are/were these Wall Street firms? I am unaware that these banks, investment houses, etc were anything but "private industry."

Now one can argue that their function is more critical to the economy, but the Wall Street bailouts still amount to a handout to "private industry."

What Clark is saying is that one type of private industry is more valuable than another; again, a defensible argument. But let's not obscure the facts by drawing a false line of demarcation.

Let's also realize that if we allow the auto industry to fail now, the consequences would be catastrophic. Can anyone maintain otherwise?

Imagine the day one of these car companies goes under...the stock market craters, and then we see waves of unemployment hit. This doesn't save taxpayers any money, since we now have to absorb more payouts for unemployment insurance, the pension guarantee programs, etc.

Bailing out the auto makers can work if proper conditions are attached; however, there is one option worse, and that is letting these companies fail at this point in time.

By Just A Thought @ 12/07/08 04:46:34 PMreport abuse

Bailout

How hard is it to see that the common denominator in this mess is the UAW?!!!

By Michael @ 11/23/08 03:51:05 PMreport abuse

Big 3 Auto Bailout...

There are executive pay excesses at every major Fortune 500 corporation, not just the Big 3. They are paid to 'manage' the financial results of their businesses. They get paid more if the business does well. The UAW has tied the US auto industry in knots and added excess cost to the mfgrg of the vehicles for decades. There has been inept management in place for years. It takes 2-3 years minimum, maybe more, to turn the corner on new, unique, adaptive designs. Kinda like developing a new vaccine...all of which costs money. Some of the airlines have survived bankruptcy, some have not. A bail out is not the answer. A bridge loan may be. For sure, Detroit is getting it's proverbial butt kicked, by the Asian mfgrs. They can re-work themselves into leaner, more efficient businesses via Chapter 11. Lots of businesses do it. At the end of the day, greed and power will and have bring them down, unless they are right sized. Getting out from under the existing union contracts is absolutely critical to reducing their cost base.

By Allen @ 11/21/08 08:49:52 AMreport abuse

I agree 100% with Clark - there was poor management on all sides, the "BIG 3" allowed this to happen. They could have stood up to the unions, they could have followed the patterns of the foreign automakers in providing a quality product with minimal labor. To bail them out is just one more step towards socialism. It is time for America to stand up and say we are not taking this anymore without a fight.

By Anna @ 11/20/08 10:49:48 PMreport abuse

No Bail-Out, Sell the Lear Jets

All came in their private lear-jets. Let congress ask each one if they would sell their Lear-Jet today and ride "Grayhound" back to their homes!!!

By Mike @ 11/20/08 10:03:03 PMreport abuse

NO Bailout

With union workers with the big three auto makers making with benefits over $70/hr. and Toyota workers making just under $50/hr. including benefits something is seriously wrong. Detroit isn't making a car we Americans want so giving them a loan to continue making cars we don't want is crazy.

Secondly, the CEO, FEO, Pres., Board of Directors and etc. all need to spend a little time behind bars. That also goes for the Wall Street bunch as well.

By JWM @ 11/20/08 06:26:39 PMreport abuse

bailout

Nope, "they are deserving of what they get", "the worm has turned" The big has screwed their own customers for years and now its time for them to get the drive shaft.

By william @ 11/20/08 06:20:50 PMreport abuse

Auto bailout

I say No to the bailout. The big 3 need to downsize to become more effective. They need to re-negotiate the Union contracts that pay the workers far too much in terms of pay & benefits compared to the average worker. Plus they need to trim out management's ranks as well though both layoffs & salary reductions. They also need to shed the excessive dealer network & concentrate on building what Americans need, not what some people want (trucks & Suv's). I work in the auto industry and we went from a defined benefit to a defined contribution retirement plan long ago. The UAW needs to wake up & smell the roses if they want to remain in business

By Scott @ 11/20/08 03:14:26 PMreport abuse

GM Bailout

If your livelihood depended on a pension check from GM would you feel this way? GM is not the only company who has made unwise decisions. What about the Oil Companies etc?

By Retiree @ 11/20/08 02:10:14 PMreport abuse

Bailouts and work ethic

If I pay you more, will you work harder and better? Don't count on it!

By TO @ 11/20/08 01:06:07 PMreport abuse

Thankyou Clark, I AGREE !

By Dan Curtis @ 11/20/08 12:52:52 PMreport abuse

GMAC applys as bank holding company

Now General Motors Acceptance Corporation, the largest lender to General Motors Corp. car dealers, has applied for status as a bank holding company. This is just what American Express did recently and once they were approved they requested funding from the taxpayers.

These handout have to stop.

They will try any approach to get the 25B which they are not deserving of. If they ran there business properly they would not need the 25B. I recommend we do not approve GMAC's request nor the 25B by the big 3, I would rather see all 3 file for bankruptcy and restructure. Also get rid of the highly paid management.

By Mikey @ 11/20/08 09:55:33 AMreport abuse

auto industry bailout comment

No one is bailing me out each month,when i try to figure out,how to balance my buget! Gmac repo'd on me years ago,and they did not bail me out! We keep pouring tax payingmoney down the toilet,how abought helping me out! Even an idiot knows,that "you build a house,from the foundation,and not the roof". The government needs to stop bailing period,let bad decision suffer when bad consequences,for they got paid big time and still get golden parachutes,when they bailout and run and hide! We need to throw them out the airplane and keep the chute! The auto industry has had over 50+ to get it right,with better gas mileage,safety,and profit. If they want help,then have them give back all of the money,that i have spent over the years on lemons,jack up interest,overpriced repairs,overpriced warrantys,bad customer service,repo extra jack up charges,being humiliated,and talked down too. I could go on but ,you get ,the point. let the enconomy rock and roll,until the crooks go out of business,and decent people start up ,new ones,for that's suppose,o be the quote unquote:american way......

By mr.johnny giles,jr. @ 11/20/08 07:23:10 AMreport abuse

No more bail outs!!!

No bail outs for the unions!!!!! Let them go bust!!!! Let the unions go to Acorn and ask them for a bail out. The auto makers need to make better cars that are more fuel efficient and affordable to buy and not big gas guzzlers!!!

By Change auto 3 or good bye @ 11/20/08 06:48:28 AMreport abuse

The Auto Industry

First there are way too many cars in America! If we as a country would take care of what we have, we could use the vehicles already on the road and in sales lots FOR THE NEXT 25 YEARS +++. This would actually create more tech jobs to keep these vehicles running. The main vehicles that should still be selling is alternative fuel, power vehicles. Think out-side the box. Keep what we have working for now, and invest in other ideas that would free our dependency on fossil fuels. This would also create new jobs.

By Jeremy @ 11/19/08 11:41:25 PMreport abuse

bail

dont give a deadman my turniquit when I need it for my bleeding!

By rob @ 11/19/08 11:19:42 PMreport abuse

Auto Bailout

I watched the Senate Hearings tuesday, and after hearing all of that foolishness, I say don't bail them out. Three Reasons: 1. the average american really can not afford the over priced cars(that's part of why we are in the situation we are in) 2. most of our credit scores would not let us qualify for a loan 3. The cars are over priced.

By Mark @ 11/19/08 10:48:39 PMreport abuse

Goodbye Big 3

Any money given to them will be wasted. They will all 3 go under and have to file Bankruptcy. They can't just start producing better and different vehicles tomorrow. It takes years or retooling, re-design, etc...to get a new car out that can compete with Toyota, Honda, etc...Don't throw billions at these dinosaurs.

By Wade @ 11/19/08 10:07:17 PMreport abuse

loan, not bailout, sure

Detroit MO for years was planned or some say "engineered obsolescence", cars that only lasted 60,000 miles. That way of management and thinking has brought them to their knees. As a Nissan owner I say goodbye...My 1991 4 cylinder engine has 314,000 miles...How you like that Detroit?

By Car Al @ 11/19/08 09:55:10 PMreport abuse

Each of the Big 3 CEO's flew to Washington this week to ask for a taxpayer bailout. How did they get there? Each one took their company's PRIVATE JET. At the estimated expense of $20k per flight. They could have flown commercial for $500 or so. And they didn't even consider "jet-pooling" in from Detroit, which would have at least saved $40k. It is that attitude that explains the state of their failing companies. NO BAILOUT!!!!

By HHS @ 11/19/08 09:54:50 PMreport abuse

Seems like they fired all the union traffic controllers and had people lining up big time to take their jobs. They need to clean house. The unions have sucked the auto industry dry.

By mreed @ 11/19/08 08:31:27 PMreport abuse

Ford Bailout

Ford was warned of this so many years ago, They should have tried to compete more with the demand of economy cars.

By Jeff S. @ 11/19/08 07:58:53 PMreport abuse

Let them file bankruptcy

I recommend that they negotiate with the Union, reduce union cost and eliminate many of the high paying union positions, in addition, recommend that the CEO's of the Big 3 take a walk and get some new blood running the businesses.

If congress approves the 25B bailout for the Big 3 then all large corporations in America should also be entitled. Just because a company is mismanaged for many years does not entitle them for government bailouts, let all three file bankruptcy.

Then the Big 3 would potentially be run leaner and meaner and will show a profit.

By anonymous @ 11/19/08 05:30:53 PMreport abuse

why bail them out? nobody buying their cars to begin with. so what make they think that people would buy their car after the bailout?

By tim @ 11/19/08 04:22:04 PMreport abuse

auto industry

Unions aren't the problem. They're the only thing bringing folks health plans, retirement plans, a decent wages. Our international automakers who sell here subsidize or have their nations provide these benefits, just as they do with other industries. Until these are equalized, you can't compare them. It isn't the workers, but the management who haven't adjusted their models, quality, and mpgs to fit the public. Those countries without energy have already adjusted, our management are the laggards.

By patrick @ 11/19/08 02:52:06 PMreport abuse

auto industry help

This is not a "bailout" but a loan with negotiating teeth. If we can spend this much in a week in the Middle East with no return and an incalculable amount on Wall Street including bonuses for execs with no strings and no visibility and no help for homeowners, then I think we can find it in our budget to help our manufacturing industry - getting a better product and result.

By patrick @ 11/19/08 02:45:54 PMreport abuse

The UAW is to blamd for Detroit's demise.

The Detroit auto bailout should only occur if all UAW contracts and obligation can be canceled. The United Auto Workers and their union is what destroyed these companies. Money that should have been spent on innovation, quality or making cars cost effective was sucked away by UAW benefits.

By Tom Smythe @ 11/19/08 12:47:58 PMreport abuse

They already get tax bailouts - no more

I agree that this is a bad idea. They already get tax subsidies/credits from the government.It's time they truly re-evaluate their business.

By MD @ 11/19/08 12:47:12 PMreport abuse

If we bail them out, then what makes them want to change the way they compensate the top people or the terrible union contracts they have. They will just keep doing business as usual and fall farther behind the other car manufactors.

By Mike @ 11/19/08 12:10:02 PMreport abuse

bailouts are nothing new

I along with most others on this post feel this is not such a great idea. Letting the big 3 downsize natually is probably the best thing. These bailouts are nothing new, look at beach renourishment. The gov't spends billions every year to try to protect multi-million dollar beachfront homes and their demise is inevitable. Stop wasting money and let them fall in the sea!

By city planner @ 11/19/08 12:10:00 PMreport abuse

They need the bailout to free themselves of the shakles put on them by the Unions. They need to be on the same level playing field as the others producing cars in the US. That way they can resume their rightful position as the world leader in manufacturing.

By Bob Townsend @ 11/19/08 12:01:07 PMreport abuse

auto bailout

We should not give any bailout to a big private business Why not give every American a $ 10,000 government rebate. People will buy cars. Factory workers will keep jobs.Money will circulate again.Probably too simple. Execs won't gety their hands on it.

By kathy @ 11/19/08 10:19:12 AMreport abuse

Big 3 Bailout

If we approve the 25B to save the Big 3 from their bad decisions that they have make over the years then why not allow every company in America 25B also.

By Mikey @ 11/19/08 09:57:23 AMreport abuse

you people better wake up

Letting the auto industry die is going to signal the death of this country. The US will no longer have the means to produce for the world, or produce the goods it has to defend herself.

Most of the suppliers will quickly follow, pulling the remaining companies down with them. How does a company function in Chapter 11? They get money via bridge loan while their debt is reorganized. The last time I checked we were still have very shaky credit markets. How productive will any company be without money to make the payroll? Wake up people!

The Big 3 goes down, mark that date as the end of our country as we know it. We have to give them money, but put some VERY BIG STRINGS attached to it.

Jobs bank - gone.
100% pay on shutdown - gone.
Senior management - gone.
Board of directors - gone.
Employees contributing zero to retirement - gone.

But don't worry Clark, at least you can live on water...oops, Atlanta imports that too.

By Steve @ 11/19/08 08:57:30 AMreport abuse

I wholeheartedly agree with NOT supporting a bailout of the 'Big 3' -- but what happens to all those retirement accounts/401k funds that are holding large blocks of what will then be trash stocks? Won't those accounts take a real beating if the automakers go belly-up?

By Big 'E' @ 11/19/08 07:58:01 AMreport abuse

Governm

Company I woked for laid me off. Lost my house to foreclosure. GMC truck needs 2 k in repairs. If gov't bails out big Auto when they made bad decisions. Do you think I will pay taxes. Glad we have 2nd Amendmant right still. Writing is on the wall "When people fear the government there is tyrrany, when government fears people there is liberty." Thomas Jefferson

By Soothsyer @ 11/18/08 08:13:20 PMreport abuse

What a great deal - NOT!

I wan't the laid-off, my company is bankrupt, ex-employee pricing. Ford and GM (Chrysler's already dead) need to dry up and blow away. Their ashes will fertilize new and better companies that can operate in the 21st century.

By Freddy @ 11/18/08 04:33:13 PMreport abuse

No More Bailouts!

Your right Clark! No more bailouts! What an unAmerican concept!! Isn't American suppose to be about free markets????? The big three have been making crappy cars for years. Let them all go down the toliet.

By patdesign @ 11/18/08 04:31:20 PMreport abuse

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Nov 18, 2008 -- Ford offering employee pricing, auto bailout bad for America

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