T Nation

Majority Against Auto Industry Bailout


What will they do next I wonder? Maybe they will just give everyone a check so they can get a free American made car anyway?


The days of us borrowing money is almost over.

What do we do?

We just print more. Governments can do that.
What's the worst that can happen?



Skyrocketing inflation for one. Plus, we will become more in debt.


Yeah, I was being a tad sarcastic.

Although, another fantastic solution:



I think the auto industry should be bailed out....

...under chapter 11 restructuring.


Bail them out under these conditions

1/ All union worker take a 25% pay cut

2/ Union workers can not strike for seven years

3/ Management most cancell all bonus, perks and expence acounts

4/ Management must show a financial plan for rebuilding the industry

Put up or fuck off!


Who are they going to show a plan to? A bunch of career politicians who have never owned a successful business, produced anything or had a career outside of being a lawyer? Or maybe the government can have them model their businesses off of their successful and popular ventures like the IRS and social security...


It is sad because in the past couple years ford had really taken some steps to improve their product because they realized they were making crap.

But they should drown people have been complaining about their products forever and they didn't do anything.


I don't have a problem with congress bailing the industry out, I just have problems with the industry actually doing the right thing. Left to their own devices, they'll continue down this same path of creating large, fuel inefficient monstrosities that allow soccer moms and bodybuilders sitting on phonebooks to sit above traffic.


So if I financed my truck through Ford Credit and they go under, does that mean I own it free and clear? Their credit lines are paid off in their bankruptcy deal?

Or do I just pay directly to which ever bank gave them their credit line?

Anybody know what kind of lien the various parties would have in that scenario?



Sad but true.


You guys are missing the point. The goal is NOT to bail out anyone but to have them grovelling and begging.

Remember how some kids would beat up the kids who made good grades? Same thing. The auto companies were worn down over the years by losers (government and union thugs) until they now have to plead for life. Why do you think all those regs were put on the auto industry in the first place? To 'protect consumers'? LOL!!!

Its all about power.


There is large truth to this, but I've worked inside the auto industry in this city and I'm here to tell you that they are every inch the incompetently managed bureaucratic quicksand pit that congress is.

I agree though, regulation is almost entirely for regulation's sake. It kills me that people actually believe that politicians give a shit about anything except power and money which are 2 sides of the same coin.


What I believe would happen is either...

Ford Credit would spin off into an entirely different company if it isn't already, and continue to collect your payments.

OR some other lender would buy the receivable (your payable) from the defunct lender and you would then make payments to the new lender.

You'll still have to pay for your asset.

Worst case, you make your check out to a new name.

From what I heard Ford is in the best shape of all three, and can last at least another year. But I'm not so sure I believe that.


Yeah. Seems to be the same problem Congress has and why that check hasn't already been written. I was happy to hear them demand plans from the auto industry. But the auto industry couldn't deliver. When asked their plan for reorganization and how they would improve things, they just stammered and stuttered.


Congress should've done the same thing with the banks. If the bailout is appropriate at all (a dubious proposition), the money should not be used to acquire other banks. More strings, better plans, less blank check.


Damn straight on both counts. The American auto industry is even more of an incompetent bungler than Congress. Some regs were appropriate. Some definitely weren't. But the auto industry's own mismangement had more to do with bringing them to this point than any Congressional oversight.


The problem with that argument is that states too have been enacting their own regulations against auto manufacturers:


I'm not saying that. This government has been a ball and chain around business's neck for a long time and major industries like automobiles have been hit the worst. Both sides are full of shit.

Congress is pathetically humorous when it tries to even intelligently comment on what the effect their incestuous affair with the unions has been and the industry leaders are just as bad when they testify that this recent recession is the reason why they're in trouble.

They've been in trouble since the 70's.

Government, union bullshit AND mickey mouse management have all three turned the city that put the world on wheels into a financial joke. The worst possible thing that could happen would be for these congressional vultures to get their poisonous claws even further into these companies by loaning them money and then setting policy for them.

Also, like it or not the unions are choking these companies into unconsciousness. Don't even try to tell me otherwise. I saw it with my own 2 eyes. None of this changes the fact that the auto companies are burdened with mountainous layers of bureaucratic book larned managers who are concerned about everything except selling cars which BTW is kinda necessary if they wish to stay afloat.


good points. except the union comment is a bid far reaching. i dunno how the auto unions look, but i worked union welding up until i went to college, and the actual workers are not grinding axes for their bosses, and i doubt they want their company to go under to be unsuccessful, obvious reasons.

the union bosses and upper union management make way too much money and benefits, and are responsible for all the shit that unions are getting now a days.

my union rep drove a pretty nice car and never seemed to worry about anything, but my coworkers drove buckets and lived in shitty areas of san diego.