BusinessWeek Pronounces Auto Industry 'Needs' Bailout, Says Republicans Tell Industry to 'Drop Dead'


Well, I guess that settles it. We don't need any political discussion or economist's studies. The auto industry officially needs a bailout. It's just a fact. After all, MSNBC and BusinessWeek have just said it. The auto industry "needs" one or it cannot survive. Oh, yeah, and MSNBC is also informing the world that Republicans have told auto workers to "drop dead." I think this is what the Old Media calls "news."

This story by David Kiley of BusinessWeek is amazing for its assumptions, pronouncements and slanted anti-capatilist rhetoric and it boggles the mind that it could be called journalism. It certainly isn't "news" because of all the personal opinions that Kiley pads this thing with, anyway.

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Of course, as with most of these opinion pieces disguised as news we start with a slanted headline: Republicans to Detroit: Drop dead -- stated as "Republicans" want the businesses in Detroit to be destroyed. The sub-head continues the lies: GOP opposes bailout for automakers, even if it means bankruptcy -- no the GOP just doesn't want to fund the bad business practices and union malfeasance that has put Detroit in this condition in the first place and they also don't want to continue the same failure on the public's dime. No Republican wants to see America's car manufacturers to go bankrupt.

So, right off, with the first 15 words of this faux news item we get a misconstruction of the Republican position.

Naturally, it gets more ridiculous with each passing paragraph.

In the very first paragraph, for instance, we get this Old Media scribbler pronouncing that the auto makers "need" a bailout.

Democrats may have been the big victors on Election Day. But the Republicans still in charge in the White House and representing a possibly immovable minority in the Senate may keep the U.S. auto industry from getting the help it needs before Barack Obama is inaugurated as President in January.

Who says the auto industry is not "getting the help it needs" to survive? Who says they "need" it? I guess David Kiley just did. So, that settles it. David is the man!

But, wait. Kiley will say it isn't only he that claims the bailout is necessary. He offers us this...

Without at least $15 billion in loans, General Motors, say insiders, could face bankruptcy next year. The total loan package sought by Democrats for automakers and their suppliers could be as high as $50 billion, a number floated by aides to President-elect Obama.

Ah, yes. He takes the word of the failures from General Motors and Democrats (and by extension the jobs killing unions) as to who "needs" a bailout. He takes the word of the people responsible for destroying their own profitability with cars no one wants and union deals that strangle competitiveness. That is the barometer of "need" for David Kiley. Got it? Good.

Kiley then lists a plethora of questions that some stuffy Senate banking committee will ask the auto execs in the coming weeks. There's questions about liquidity, about paying back the bailout, there's questions about guarantees and how they got that way. But one major question seems to be left off that list.

Who is going to scale back the destructive unions?

Did you know that in 2006 alone, unions forced the auto makers to spend $750 to $900 million on workers that sat in a room for 8 hours a day and did nothing just so they wouldn't lose their jobs? Is this the sort of "business" practice that assures profitability? Is this the sort of practice that the American people's taxes should be wasted on?

Up to $900 million dollars wasted on union stupidity... and this is only one small example of such waste as there are many, many more. Why isn't THAT being asked in Kiley's piece or the Senate banking committee? Of course, the reason is, neither Kiley, nor the Democrat controlled Senate banking committee are interested in any real reasons why Detroit is a failure. They only want to protect their political money train.

Farther down in the story, Kiley at last gives some Republicans a chance to say a word or two. Still, however, Kiley couches it in a sort of disclaimer, one that seems aimed to cause the reader some doubt that the Republicans against this bailout could be in the right.

For all the Democratic support to help the auto companies, the opposition by Republicans is just as strident. Senator Richard Shelby (R-Ala.), a member of the Senate Banking, Housing, & Urban Affairs Committee, said: "The financial straits that the Big Three find themselves is not the product of our current economic downturn, but instead is the legacy of the uncompetitive structure of its manufacturing and labor force." He added: "I do not support the use of U.S. taxpayer dollars to reward the mismanagement of Detroit-based auto manufacturers in such a way that allows them to continue and compound their ongoing mistakes."

Shelby is dead on with his comments, of course. But notice how Kiley tries to massage the reader into wondering why the Democrats could be so united, "for all the Democratic support," and how they want to "help the auto companies," yet Republicans still show "opposition." As far as Kiley is concerned, Democrats equal "help" but Republicans seem to be just mean, fractious, and insanely against the poor, innocent auto makers.

Kiley drones on and on with his "news" piece, but it never really gets any more newsworthy than he began. Suffice to say he has decided that the auto industry is the victim of mean ol' Republicans that want them to fail. He has pronounced it. And he has gotten the word of the true guilty parties to back him up on that absurd pronouncement.

This is what MSNBC and BusinessWeek call "journalism."

(Photo credit: Businessweek.com)


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Warner, I didn't read the

Warner, I didn't read the entire article, but I'm guessing that he also left out the $25 billion that the unions want separately, to fund their pensions and future health costs of their retirees and their families.

Talk about chutzpah!

How could you have guessed?

How could you have guessed?

That is the part of this

That is the part of this that infuriates me the most!! They promise their workers gold-plated benefits, and then when they can't make good on it, they expect the taxpayers to bail them out.

Will an Obama administration care that by raising taxes for this kind of crap they will be hamstringing people from saving more for their own retirements?

Probably not:  I fear they intend to herd us all into some kind of "government-guaranteed" retirement program...

You know, like Social Security.

Only not as "generous."  LOL

 

I'm sure you're a very nice

I'm sure you're a very nice person, but I hope to Almighty God you and I are wrong. Because I unfortunatly agree with you!

motherbelt,

This is nothing more than a bailout for the UAW.

If they were honorable companies, they would take the honorable route and file for bankruptcy and then reorganize into leaner, meaner companies and eventually come back in a much stronger position, even if it means sacking the union.

BTW-I read somewhere the GM alone spends $17mil/yr on Viagra for its employees. I don't want my tax dollars going to pay for next years supply. Let them buy their own fun pills.

As for the UAW, fork 'em and feed 'em Spam.

-Dave

Did this country just elect Obama/Biden, or was it Soros/Ayers?

UAW Bailout, Not Detroit Bailout

As I've posted elsewhere . . .

Any auto bailout, if it happens, will be a bailout supporting the UAW and their bloated wages/benefits/pensions, not a bailout to save the Detroit Big Three.

Even though it would hurt my own income, I believe the best thing to happen to Chrysler/Ford/GM would be bankruptcy reorganization from which they'd emerge with labor costs at parity to the non-Detroit brands.

As for management, the sins for which the industry is currently suffering were committed long ago by prior managers and prior boards, giving in to unsustainable demands from the unions and giving in to unreasonable expectations from regulators. Firing the current management for the failings of their predecessors is about as logical as going after the descendants of plantation owners for slavery reparations.

Detroit makes plenty of small fuel-efficient cars (GM has more than 30 over 30 MPG), but they have to sell them at a loss to compete with the costs of the non-Detroit brands. Just to break even, Detroit has to sell at least one "eeevvviiilll" SUV to make up for every small car they sell.

Fuel economy standards that ignore actual buyer preference are exactly what has forced the Detroit brands to sell small cars at a loss. How will piling on more regulation improve their financial viability???

 


It's depressing.

  WTH puts the kibosh on this joke of journalist and nothing. Is he going to lose his job? Will he issue a correction? Will he be subjected to criticism from his fellow journalist?

  We know unions kill companies. Yet once again we have the Democrats trying to shove even more unions down our throat with the misnomer free choice act.

  We know socialism is a failed government. Yet liberals keep pushing the Democrats to keep hoisting ever more socialist programs on us until we wake up one day and realize oops, we have a socialist government.

  The internet is a big fat FAIL. Good sites pointing out the truth like Newsbusters seem to get completely overlooked in the rush to get ones head filled with garbage.

  Oh, do I not have enough hopeychange left after the election?  Someone seems to have stolen it all.

Sincerely,

a Veteran of a 1000 psychic wars.

I am filling out my....

incorporation papers today. Maybe I'll get a piece of the pie too.

People in HELL

Need icewater but it does not mean they get it!!!!!!

Good Riddance GM

I'll never buy their product again. The last vehicle I bought from UAW shop needed it's transmission rebuilt twice, until ultimately it was replaced with a "factory rebuild." That was before it reach 35,000 miles. The transmission still slips on an incline. Other problems include, ABS module failure & steering column problems. But hey, I have airbags ... I wonder if they work? 

But hey, I have airbags ...

But hey, I have airbags ... I wonder if they work?

Yeah, if they don't kill you, they work.

How many Republican votes do they need?

Last I checked, the Democrats ran both chambers of Congress.  They wouldn't need a single Republican vote in the House and only 9 votes for cloture in the Senate to pass any bill.  They would need Bush's vote, but they haven't even put a bill together.  Why?

It's like the bailout--Pelosi and Reid are not going to let this be hung around their necks without the cover of "bipartisanship."  They could have passed that horrific bill a week prior to when they did without Republican support.

Next point:  Toyota, Honda, Nissan, Kia, Hyundai and Mercedes all manufacture cars in the US.  Toyota has more than 13,000 US employees and they're building more plants (in Red states not unsurprisingly).  Nissan, Honda, Kia and Hyundai have similar numbers and are growing.  GM, Ford and Chrysler are all contracting and sending their jobs to Mexico and Canada.  Bailing them out won't stop this trend, just extend it.

Last point:  Liberals are secularists and demand that our children be indoctrinated with the theory of evolution.  However, when it comes to real life, they try like the dickens to remove the consequences of behavior that rightly leads to survival of the fittest.  Economically and by the law of evolution (albeit somewhat misapplied), the Big Three should be left to die to allow for the evolution of a fitter car company.  Would it hurt their employees?  Actually it would free them up to pursue other employment that isn't reliant on corporate welfare and constantly has a sword hanging above their heads?  If they couldn't find work, well, that's evolution and we all have been taught that that's the way of the world.

This may sound cold-hearted, but it is even more cold-hearted to forcibly confiscate money from generations who haven't reached the age of majority (most of whom are not even born) to give it to an industry that is committing economic suicide and stringing along their workers.

Will McCain be the Democrats Useful Idiort Come January

Excellent points Winglet!!

Do you think McCain will be the Democrats "useful idiot" come January provided the cover of bi-partisanship that the Democrats  can drag out in the next election cycle?

They are useful idiots

Come January????

He is already and he's not alone!!

Hop on over to the forum and see the thread Bigtimer has started about Lindsey Graham and McCain collaborating already...on immigration of all things!

Bring your duct tape!!

I sure hope not due to the

I sure hope not due to the fact that he has nothing to gain by it.  I sure hope he is bitter after seeing himself hung out to dry by the "bi-partisan" left.  If not, then he is just a lemming. 

he is just a lemming.

he is just a lemming.

Dam Skippy!!

He got the message from the MSM...if you want any attention, John, go back to being the Republican-bashing "maverick" we knew and loved!

Filibuster Proof

Good points about the 60 seats. It doesn't matter if Democrats reach that number (although they seem likely to do so).

With  McCain and Graham cooperating in a spirit of bi-partisanship the Democrats are already there.  McCain's ego will just not allow him to be criticized in the press.

The dynamic duoe will likely provide "bi-partisan" cover for immigration and other "reforms".

It will be a long two years.

Is McCain a "Useful Idiot?"

Unfortunately, most of the Republican Party are.  There are very few who are principled and most of them have acted like their constituencies want Socialism-lite regulation, unlimited government and earmarks for their districts.  This is why they have been slaughtered in the last two elections.

Besides George Allen and Rick Santorum, nearly all of the Republicans who have lost were left-leaning--Sununu, Dole, Gordon Smith, Chafee, et al.  Norm Coleman and Ted Stevens are still awaiting their fates and they happen to be liberal Republicans.

The media keep making such a big deal out of the prospect of a filibusterproof Senate.  The Dems may not have it now, but the liberals do.  Olympia Snowe, Susan Collins and Arlen Specter can be counted on to vote for the looniest left bills.  McCain, Graham and Coleman (provided he survives the recount) will organize the other Republicans to make sure they don't resist.  Sadly, there are fewer than 20 conservative senators in the Senate.  Tom Coburn is the best one out there, but he is a lonely voice of dissent in a funhouse of liberality.

Well I do have to include

Well I do have to include Jeff Sessions in with Coburn here...there are a few others too...just wanted to make sure and add him too.

"America isn't the problem...America is the solution." ~ Rush Limbaugh

downpayment

This is going to be the first installment that the US taxpayers will apply to the cost of combating "man-made global warming." Let's see. We don't want cars that spew that nasty CO2. But we don't want people to lose their jobs. GM has an idea for a car that runs almost totally on electricity. It's going to cost $30 to 35 thousand dollars and only travels 40 miles (is that in the morning traffic jam with the lights and windshiled wipers and radio on?), but that's OK because we know people will just flock to it to save the planet. Let's give GM $25 billion to re-tool so they can make this great car, then will give them $25 billion more so people don't lose their jobs. To ensure people will want to buy this car we will continue to prohibit drilling for oil off our coasts and in ANWR. That way, when the economy recovers the price of oil will skyrocket again making this car look attractive. We won't tell them that if this car does catch on, gas prices will probably plummet and electricity rates will skyrocket. We'll just remind everyone that it's a small price to pay for saving the planet.  All the while China and Russia will continue to develop using the cheapest energy they can find.

I fear for this country,

I fear for this country, for I feel that your tarot cards are accurate.

Squeeze the UAW!

OTSS!  Let's squeeze these pathetic businesses out of the market.  They can't make a car that people want to buy, and they can't make a car that will last.  All this, and they can't even keep the jobs in America.  Before you know it, they will be outsourcing to China, as if Mexico and Canada aren't bad enough.  Canada isn't bad, but it isn't America.

You can't afford to buy "American"

I quit buying GM cars after the Diesel fiasco of the 80's. Two year, three fuel pump replacements and more shoptime than road time. I bought one of the first Saturns (when it was independant). It was a good car but bad on brakes. After GM called them back into corporate it became a very mediocre car bad on just about everything. Bought Ford (Mexico) then Mercury (Canada)..both good cars priced themselves out of the market. When I replaced my last Merc. intended to get another. Base price plus safety options put the beast around 44,000. Then I looked foreign, now drive a Hyundai which, with all the safety features I wanted was still 2,000 LESS than base Merc. The UAW has killed the auto industry and bad management has let it do so. Bail them out..not only no but hell no

Just compare the new Altima

Just compare the new Altima or Accord to the Impala or Malibu, is there even much competition?

Hyundia

Your Hyundia was probably built in Mongomery, AL. They have a big plant there. Don't know if it is union or not but it is a big place

YOU CAN KEEP "THE CHANGE" PALIN 2012

GImme $25 bn

Give me $25 billion and I promise not to come back begging for more.

  • LYDSEXICS UNTIE!

It's almost time for a tax strike.

It's almost time for a tax strike, at least before Obama staffs his civilian imposition army.

I AGREE!

I AGREE!

You people don't understand....

   The automakers and the democrats NEED to get this passed right away!  That's because they need to hang this bag of rocks around George Bush's neck.  They don't want their fingerprints on it and also can later use the 'precedent' set during a 'Republican' administration to reward other needy unions.

  "The automakers and the

  "The automakers and the democrats NEED to get this passed right away!"

Like when they told us that it was so important to slip $700 billion through their greased fingers ... just not important enough to cancel a scheduled two day congressional holiday for roshashana.  

Like global warming, the

Like global warming, the science is settled. No further discussion is required, and any pathetic attempts at dissent will be crushed.

Resistance is futile. You will be assimilated.

 

»→ Frankly, Tres Grandes

Y'all know the rest.

Those who wish to freely donate $1500 at signing, to the benefits package of the UAW?  That's your business!

It should not be the business of the Federal Government to endorse unsound business practices.

"Tres Grandes" has a right to fail, let's not rob them of that right.

  • LYDSEXICS UNTIE!

I remember well

     Early November 1970. The Boeing Co. was very busy with their plans for the USA version of the SST. There was a Senator from Wisconsin, William Proxmire D, and he was dead set against the building of that plane. He lobbied hard to have the plane voted down, and he won that battle. Boeing lost! Within weeks, Boeing laid off approx. 80,000 people. That snowball affected a ton of little venders in the area, and nobody seems to remember, a 12 year Metro Construction project of sewer & watermain was wrapping up, and I was hauling castings and pipe to a lot of those places. It was a really tuff time for me, and, most everyone I knew.

       I was laid off from a job I would never get back. The entire area suffered greatly and I don't ever remember anyone ever using the word BAILOUT. Did we ever have a BAILOUT that I don't know about? As far as I ever knew, people like me and thousands of others had to suck it up in the best way we could and fight thru it. Things didn't change overnite, and over time, things worked their way to the surface and life went on.

     When I see this BAILOUT, that will probably end up to be given out in Detroit, I don't understand why. The conventional thinking is, you are allowed to fail, and when you do, you find another way to get it going. When do these hand outs end? Who gets choosen over who? Why does one entity get a BAILOUT and another one doesn't? It's obvious to anyone with a brain, if it doesn't stop, we are all doomed!

The Big Three should

file for protection under Chap 11, get rid of the union and all union contracts, keep all employees who wish to stay WITHOUT a union, set pay and benifits to mirror others in the industry such as Toyota, reorganize, and come back strong!

Employees wishing to stay without unions will be the best and hardest working. They will take pride in the product they build, the product will be less expensive, and better built.

And the Union Heads can ROT!!! or go to Mexico.

Bailout? give me a break!

As a 70 year old self employed retiree that though out my 50 year working career, payed my own NON-DEDUCTIBLE health care premiums, 100% of my SS. and lost 1/3 of my retirement in the past year, I find it hard to understand why I should have my tax dollars spent on a UAW thug, who doesn't want his co-pay raised by $5! 

LET THE UAW BUY OUT THE BIG THREE! 

UAW TAKEOVER

In the 70's, Hyatt Roller Bearing in Clark,NJ (a GM division) was taken over by the UAW because GM got weary of the constant harrasssment of the union. I know this for a fact, because I lasted only 2 weeks in that HELL-HOLE! There is no way any human can work that slow. Two years after the takeover, the factory was bulldozed and replaced by a very nice golf course.

It's time for the " Fair Tax

It's time for the " Fair Tax "/Consumption tax.  Lets get rid of the IRS and the 16th Amendment.  Read up on it...makes total sense and takes the power out of Washington and their class warfare w/ the tax codes.  It also gets the Govt out of the business of being in business against the private sector....and these pigs think they can run our health care system...I would not trust them to be able to wipe their own a$$.