Obama Asserts Control Over Auto Industry

[rudywoofs (Pam)]

Quote:

Obama Asserts Control Over Auto Industry

By DAVID ESPO, AP Special Correspondent

WASHINGTON – President Barack Obama asserted unprecedented government control over the auto industry Monday, bluntly rejecting turnaround plans by General Motors Corp. and Chrysler LLC, demanding fresh concessions for long-term federal aid and raising the possibility of quick bankruptcy for either ailing auto giant.

Obama took the extraordinary step of announcing the government will back new car warranties issued by both GM and Chrysler, an attempt to reassure consumers their U.S.-made purchases will be protected even if the companies don't survive.

"I am absolutely committed to working with Congress and the auto companies to meet one goal: The United States of America will lead the world in building the next generation of clean cars," Obama said in his first extended remarks on the industry since taking office nearly 10 weeks ago. And yet, he added, "our auto industry is not moving in the right direction fast enough to succeed."

Obama, flanked by several administration officials at the White House, announced a short-term infusion of cash for the firms, and said it could be the last for one or both.

Chrysler, judged by the administration as too small to survive, got 30 days' worth of funds to complete a partnership with Fiat SpA, the Italian manufacturer, or some other automaker.

GM got assurances of 60 days' worth of federal financing to try and revise its turnaround plan under new management with heavy government participation. That would involve concessions from its union workers and bondholders. The administration engineered the ouster of longtime CEO Rick Wagoner over the weekend, an indication of its deep involvement in an industry that once stood as a symbol of American capitalism.

the rest of the story

[Neil D]

Concider that GM expenses are about $2billon per month...This is the 3rd bailout that it is asking for....Why are we proping up a failed mechanized industry that needs to pare back drastically...Something not right in managment....

[bonnie]

Concider that GM expenses are about $2billon per month...This is the 3rd bailout that it is asking for....Why are we proping up a failed mechanized industry that needs to pare back drastically...Something not right in managment....

Something is not right in government that they keep propping up.

All economists I heard in the beginning advised bankruptcy and restructuring . Now the same noises are coming from the government. Who is minding the store that keeps sinking money down a bottomless hole?

[Woody]

At what point are they going to realize that we need the 'free market' to be free and not supported by the government.

[bonnie]

At what point are they going to realize that we need the 'free market' needs to be free and not supported by the government.

A free market,free people are totally opposed to what Obama is after. You cannot control those that live under a free market

[there buster]

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Why are we proping up a failed mechanized industry that needs to pare back drastically

Because if it went into bankruptcy, the UAW contract would be nullified, and the Democrat party is a wholly owned subsidiary of big labor.

[jasd]

QR frame:

Unless our Gov’t intends to subsidize the UAW, the union contracts must be renegotiated – downwards, large. It would be exceedingly unwise for us to allow our auto manufacturing capabilities to become just an extension of the rust belt. A time of Nat’l emergency is

not the time to discover that we need to rebuild a manufacturing base for our military.

Remember the Bros Reuther? Isn’t it that Walter and the UAW are practically synonymous terms? Further, didn’t he, almost single-handedly – make the UAW a major factor (an axe in a corrupted fasces, as it were) of Democrat Party politics?

And, wasn’t it the Bros Reuther who are credited with the following statement (paraphrase)?

“Carry on the fight for a Soviet America.”

The above said, were Obama to indeed force Chrysler to merge with Fiat – he would be forcing Chrysler to merge with an Italian communist auto worker’s union and a Corporation that is a third mob-owned.

I don’t know how the problems in the auto industry will eventually wash – but to force the merger of Chrysler with yet another European Corporation – seems awfully, umm, sinister to me.

Remember? "As goes GM, so goes America."

[Woody]

Quote:

Why are we proping up a failed mechanized industry that needs to pare back drastically

Because if it went into bankruptcy, the UAW contract would be nullified, and the Democrat party is a wholly owned subsidiary of big labor.

Good point there buster.