McCain says he opposes Detroit 3 bailout

[Oracle of Delphi]

June 27, 2008 - 2:15 pm ET

WARREN, Ohio (Reuters) -- Republican presidential candidate John McCain said on Friday he would oppose a government bailout of the ailing auto industry and voiced strong support for free trade in the hard-hit state of Ohio.

The Arizona senator toured General Motors' Lordstown auto plant and watched as high-mileage Chevrolet Cobalt and Pontiac G5 economy cars rolled down the assembly line, cars that are suddenly popular at a time of record-high gasoline prices.

Economic concerns dominated a town-hall meeting McCain held at the GM plant as he campaigns against Democratic nominee Barack Obama before the Nov. 4 election.

Ohio's economy lags well behind much of the country, with an unemployment rate of 6.3 percent in May, above the national average of 5.5 percent. Some 238,000 manufacturing jobs have been lost since President George W. Bush took office.

"America is hurting now," McCain said. But he said the future of the auto industry was in building high-mileage vehicles. "It's going to be hard, it's going to be long and it's going to be tough."

U.S. automakers GM, Ford Motor Co. and Chrysler LLC are struggling with a sharp sales falloff and painful restructurings that have resulted in plant closings and thousands of job losses, especially in economically hard-hit Michigan.

McCain, speaking to reporters after the town-hall meeting, said he supported putting government dollars into research and development of batteries and other sources of energy for the next generation of automobiles.

But he said he was against an overall industry bailout.

"I'm afraid not," he said. "A bailout, I don't think works."

Liquidity concerns for the three have spiked with consumers shifting away from sport utilities amid gasoline prices more than $4 per gallon, the housing crisis and the credit crunch.

Earlier this week, Chrysler drew down a $2 billion credit line and by Thursday was denying market rumors it faced a cash-crunch or was headed for bankruptcy.

GM shares hit their lowest level since 1955 on Thursday during a panicky slide prompted by concerns about cash, which the company said was adequate.

McCain faced questions from one employee at the GM plant about free-trade agreements that Democrats complain are costing Americans' jobs.

Raymond Francisco, 37, of Canfield, Ohio, said he had to move from his native New Jersey when he was laid off at an auto plant there.

"Is there any way that the trade can become more fair?" he asked.

McCain said he strongly supported free trade agreements and wanted to resist protectionism and isolationism.

But he said he did not believe that every trade agreement was completely fair, and that he would support setting up mechanisms within free-trade agreements so violations of them can be handled faster.

"I would do everything in my power to make sure that trade practices are fair and equitable," he said.

Link: http://www.autonews.com/apps/pbcs.dll/arti...p;rssfeed=RSS31

[Camino LS6]

I need to hear the candidates offering real help via leveling the playing field and easing the regulations that hamstring the industry.

Do that and a "bailout" won't be needed.

I'm still waiting.

[Newbiewar]

they dont need a bailout, but stop helping the foriegns...

whats wrong with a small terrif to encourage american products?

i dont think any leader from any country would concur that its healthy

[PurdueGuy]

+1 for not doing a bailout, but taking measures to ensure that the competition is on a level playing field.

[CARBIZ]

How about McCain makes an alternate energy research fund equal to the amount the Japanese government spent on the synergy drive for Toyota. From that fund, the Big Three can dip into to further their research into alternate propulsion sources.

[loki]

How about McCain makes an alternate energy research fund equal to the amount the Japanese government spent on the synergy drive for Toyota. From that fund, the Big Three can dip into to further their research into alternate propulsion sources.

as a tax payer....NO!

well luckily or not, the fed really isn't part of the government...other than it's "allowed" powers.

uh..what else. McCain is only trying to look very conservative now that he has no competition. He's one bad moth SHUT YOUR MOUTH, just talking about McCain't. LOL just made that up.

[Z-06]

Or is it because he saw Wagoner with Obama?

[Intrepidation]

The first one to unveil a real plan to level the playing field gets my vote. Then again they're both douchebags so yeah...

[loki]

The first one to unveil a real plan to level the playing field gets my vote. Then again they're both douchebags so yeah...

you might have to look at a "third party" ... libertarian or constitutional parties.

[gm4life]

I am disapointed with both canidates just let me put it that way. I will end up voting for the one the keeps the most money in my pocket. Listen I agree no bail-out but a small terrif sounds tempting but could back fire. McCain could capitalize on that and say I own a Cadillac CTS and support the American auto makers I wish more people would too. Dumb ass and so is Barack. I want whomever is elected to level the playing field, like that will ever happen. I have a better chance of losing 50 lbs and that ain't prolly ever gonna happen either.

Edited June 28, 2008 by gm4life

[Newbiewar]

a small terrif might backfire, but we have less to lose then other countries...

the only way it would backfire is if somehow we lost our agriculture export... the major companies that actually export might include deree catapillar microsoft intel, GE, General Mills, Kellogg, Hersheys, etc... maybe 1 or two companies per industry and thats it excluding agriculture.

almost every product sold in america is from foriegn soil. if america is to become debt free, it must pinch a little off the top of every other country. free trade is not something that is in the best intrest of america... never will never has been... America is best isolated on our own continent. and if people want to buy our foods & weapons, good for them, otherwise we'll be here...

[Oracle of Delphi]

Hershey's is moving their production facilities out of the USA and into Mexico. I'm not sure what they will do about their production facilities in Canada.

[Newbiewar]

Hershey's is moving their production facilities out of the USA and into Mexico. I'm not sure what they will do about their production facilities in Canada.

free trade is a bitch... its alright, there soon wont be any chocolate left in this world... good job crop diseases

[Drew Dowdell]

"I'm afraid not," he said. "A bailout, I don't think works."

except for... ya know... that last time the government bailed out a car company...

[traumadog]

Chrysler wasn't "bailed out" with direct cash, just loan guarantees - ones which Chrysler actually paid back early.

[Drew Dowdell]

Chrysler wasn't "bailed out" with direct cash, just loan guarantees - ones which Chrysler actually paid back early.

So?

1. It is still referred to as the "Chrysler Bailout"

2. Why couldn't we do it again?

[loki]

So?

1. It is still referred to as the "Chrysler Bailout"

2. Why couldn't we do it again?

...government welfare. not that most of americans don't "love us some welfare". government shouldn't get involved with private matters unless it's unlawful....even then it's almost never actual federal laws, and always get's taken care of by the states.

[balthazar]

The government is into 'private matters' up to their proverbial ear lobes- never stopped them before.

But the future well-being of one of the world's largest manufacturers and one of this nation's largest employers falls into the area of 'public' interest, IMO. I see no negative side to guaranting loans for GM, should that come to pass, someone detail how that would be tangibly 'bad', please.

[Camino LS6]

One could make the case that through legislative malpractise, the government "owes" GM and Ford "damages". :AH-HA_wink:

[FUTURE_OF_GM]

I really don't understand WHY the government is so opposed to supporting what little manufacturing we have left in this country. I mean, maybe not a bailout, but some support WOULD BE NICE. Detroit has a hard enough time FIGHTING the asian companies nd FIGHTING our own government. There is no way in hell they will survive if they have to FIGHT other governments as well.

The first one to unveil a real plan to level the playing field gets my vote. Then again they're both douchebags so yeah...

Agreed and agreed.

No worries though, it's not like McCain has a chance or anything. Mark my words; our next president WILL be Obama. I'm a storied conservative, you all know that, but I'm happy to say that MY VOTE will probably go to Obama because he seems to be the least 'out of touch' of all the candidates.

Edited June 30, 2008 by FUTURE_OF_GM

[A Horse With No Name]

My vote is going to be for Obama, I dislike McCain but I agree in the free market approach to things, but also agree that the "playing field" needs to be level.

Chris

[loki]

My vote is going to be for Obama, I dislike McCain but I agree in the free market approach to things, but also agree that the "playing field" needs to be level.

Chris

no offense, but you think Obama will change things?

http://massdiscussion.blogspot.com/2008/06...flip-flops.html

McCain has tons more though....he's been at it longer.

edit

just found on digg.com http://www.huffingtonpost.com/david-sirota...o_b_109831.html

Edited June 30, 2008 by loki

[haypops]

Unless there has been a Major change in Japan, wouldn't a level field mean that the car owner was responsible for an almost impossible to pass vehicle inspection at three years of age (the car; not the driver :AH-HA_wink: ). And wouldn't that inspection include visual items like ding-less body panels and a bright shiny paint job.