House Republicans throw wrench in the works

[Intrepidation]

Autoblog

We've gone from $25 billion to $34 billion and back down to $15 billion. The Detroit 3 CEOs have appeared before Congress twice. Congressional Democrats and the White House have spent the last few days wrangling over the final version of a long-in-the-making Auto Rescue/Bailout Bill and just before it's ready to take center stage on the floor of the House and Senate, this happens.

House Republicans today have introduced a new bill in the 11th hour as an alternative to the bill we've all been talking about this past week that was engineered by Congressional Democrats and the Bush administration. The new House bill proposes that instead of handing over loans to U.S. automakers before a viable roadmap for their long-term sustainability is in place, the government should instead provide insurance that would be funded in part by the automakers themselves and cover up to 50% of the losses of new investment in the case of default. This can be difficult to follow, but it's similar to a plan introduced during recent Congressional debates over federal aid for the financial industry. In essence, the U.S. government would be insuring private investment in the Detroit 3, which House Republicans hope would help "unlock immediate private investment" in them. If the U.S. auto industry still went under, those investments would be covered up to 50% until March 31, 2009.

House Republicans think their bill is superior because it doesn't make the U.S. taxpayer a direct stakeholder in the automakers, while we think it's ludicrous because there's no guarantee that investors would suddenly pour money into Detroit just because half of their risk is covered. It sounds like a really fast way to lose half a fortune to us.

You can check out verbiage of the American Automotive Reorginization and Recovery Plan for yourself after the jump and sound off in the comments if you think it's the right way to go (or not).

[FUTURE_OF_GM]

Well,

That settles it... I used to side with the repubs on a lot, but this is the line.

How can this party be so out-of-touch with america and, literally full of $h!?

By god, the financial buddies get whatever they want, but the auto industry has to beg and beg....

[avant1963]

The RePUGs give their final FU to the middle class, unions, and US manufacturing.

If you are not white, male and WEALTHY, you ain't Americun in their eyes.

Wear a suit? Here's a trillion dollars. Wear a uniform or get a little dirty? FU.

[avant1963]

And you do realize that the Republican stronghold is down south, and do they have a lot of there?

Transplant factories.

F GM, we got Hyundai.

[ZL-1]

The political bickering will continue until Spring. They'll announce a bipartisan compromise/solution then.

Edited December 10, 2008 by ZL-1

[Robert Hall]

And you do realize that the Republican stronghold is down south, and do they have a lot of there?

Transplant factories.

F GM, we got Hyundai.

Which is a strange juxtaposition considering the Republican pres. candidate ran on the 'Country First' theme.. God, guns, and Asian cars for all!

[avant1963]

'Country First

He never quite mentioned which country.

[loki]

Well,

That settles it... I used to side with the repubs on a lot, but this is the line.

How can this party be so out-of-touch with america and, literally full of $h!?

By god, the financial buddies get whatever they want, but the auto industry has to beg and beg....

well.. the R's aren't what they used to be, as a party.

[VenSeattle]

I loved the picture Autoblog put up... and I agree with it 100%

[Intrepidation]

I loved the picture Autoblog put up... and I agree with it 100%

Autoblog's caption series is hilarious.

[BuddyP]

I know a lot of you won't agree with me on this but I'm still not convinced this "UAW" bailout is the way to go. It simply will not solve the issues. It'll prolong an already somewhat bad situation. Let's just go through Chapter 11, if they can't get the crediters, then use the $15b for that and to cover warranty if GM did fail (which I highly doubt). Restructer. This will not work without major restructuring at this point. More people may suffer up front but let's get it done and over with and back on track. More people will slowly suffer over time otherwise. GM has so much bad baggage that could be completely cut free with Chapt. 11.

I am for this because after reading and reading into all of this over the past couple months, this will be the best way to preserve GM for the future. I can't see GM coming out better if they are gov't regulated and are restricted of what they can build. You guys will not be happy within a few months. You can absolutly bet that if the bailout does go through, many will not buy GM products because of that.

I have also just heard that the repubs have thrown out a proposal that the UAW matches.... MATCHES... wages and productivity that Honda and Toyota have here in the US. You know the UAW won't go for that!

Edited December 11, 2008 by BuddyP

[gm4life]

I know a lot of you won't agree with me on this but I'm still not convinced this "UAW" bailout is the way to go. It simply will not solve the issues. It'll prolong an already somewhat bad situation. Let's just go through Chapter 11, if they can't get the crediters, then use the $15b for that and to cover warranty if GM did fail (which I highly doubt). Restructer. This will not work without major restructuring at this point. More people may suffer up front but let's get it done and over with and back on track. More people will slowly suffer over time otherwise. GM has so much bad baggage that could be completely cut free with Chapt. 11.

I am for this because after reading and reading into all of this over the past couple months, this will be the best way to preserve GM for the future. I can't see GM coming out better if they are gov't regulated and are restricted of what they can build. You guys will not be happy within a few months. You can absolutly bet that if the bailout does go through, many will not buy GM products because of that.

I have also just heard that the repubs have thrown out a proposal that the UAW matches.... MATCHES... wages and productivity that Honda and Toyota have here in the US. You know the UAW won't go for that!

Right on. Since people seem to saying how out of touch republicans are and how they are f***ing the American people and compaines I will jump in as well... I wasn't going to get political but the way a few people have decided to bash the right I have to get in it.

Edited December 11, 2008 by gm4life

[gm4life]

The RePUGs give their final FU to the middle class, unions, and US manufacturing.

If you are not white, male and WEALTHY, you ain't Americun in their eyes.

Wear a suit? Here's a trillion dollars. Wear a uniform or get a little dirty? FU.

Dems aren't the party they were with JFK! It is hard to find a moderate dem save for Hillary Clinton... But dems became LIBERAL and switched from the party of JFK to Jimmy Carter and I changed along with them. I once was a democrat and proud of it. My father voted D his life until Jimmy Carter and voted for republican ever since. If you think the dems are the party for the common man your really full of it. I am middle class and a proud Republican. GM gave in to the UAW too much and the UAW asked for too much and they don't have 50 percent market like they did when they could pay great wages and health care packages they once did. The UAW has been in a fantasy world for nearly 20 years and they need to get a taste of the real world. Lower wages and less perks just like the execs should as well. I like the fact they want to help the industy but loans should be given no strings attached and they should get rid of CAFE let the market decide what they want not the Goverment. The Goverment also practiced bad trade policy, I think the republicans have a good plan and this another example of Bush letting down the more conservative folks. Oh but wait isn't goverment the answer to our problems, many believe that but I don't. I don't want a car czar or a bunch of "green strings" attached. I support the loans only with no strings attached, if not go with what the republicans proposed or go into chapter 11 like everyother company because long term that is best for GM. I can't believe how ignorant some people sound that the republicans actually want to screw the American car compaines... No they want them to live, and not to have to keep asking for goverment money. I would advise you to actually think why any political figure dem or repub would want to hurt America? I just want the GOVERMENT TO STOP solving my problems, telling me what kind of car to drive and let the FREE market decide. Obama is a big Union boy and will give 'em the money fact is it will prolong the process and they will still need to file chapter 11. I can see it now all of you liberal car people rooting for the money and the car czar saying no Challenger, no Charger, no G8 GXP, no Camaro, Mustang GT, and Corvette. Then telling them to build all bland Prius/Camry wanta-be's. Just wait they'll get the money not make enough changes still need to file for chapter 11 and in addition have to build a bunch of wussy ass econ/liberal green cars.

Edited December 11, 2008 by gm4life

[G. David Felt]

BOTH PARTIES SUCK!!!, Screw the Unions they never did anything good in the last 30 Years except take hardworking peoples money and be corrupt. They are past the days of doing good, but keep these companies and people working.

[Sixty8panther]

The Republican party has completely LOST it,

and for the record so have the Democrats,

just in the opposite extreme.

I am more and more Libertarian by the day.

The RePUGs give their final FU to the middle class, unions, and US manufacturing.

If you are not white, male and WEALTHY, you ain't Americun in their eyes.

Wear a suit? Here's a trillion dollars. Wear a uniform or get a little dirty? FU.

With all due respect... why, in 2008 are we still

bringing RACE into it? Is Condi Rice any LESS

Republican than the Bush clan?

I'm in a Union & I'll tell ya... plenty of Democrats

f*** the little guy, most of them are dirty pieces

of sh!% just like most poloiticins! Let's not drink

from the Socialist/Bleeding Heart Koolaid just yet.

[gm4life]

68 makes a great point.

[Sixty8panther]

We need to do as Japan does, tax the F*** out of ANY

car with a high import-parts content.

We'll see how many Toyotas are sold in the USA when a

4-cylinder Camry LE costs $45,000.

The UAW has been in a fantasy world for nearly 20 years and they need to get a taste of the real world. Lower wages and less perks just like the execs should as well. I like the fact they want to help the industy but loans should be given no strings attached and they should get rid of CAFE let the market decide what they want not the Goverment.

Hell yeah!!!

I can see it now all of you liberal car people rooting for the money and the car czar saying no Challenger, no Charger, no G8 GXP, no Camaro, Mustang GT, and Corvette. Then telling them to build all bland Prius/Camry wanta-be's. Just wait they'll get the money not make enough changes still need to file for chapter 11 and in addition have to build a bunch of wussy ass econ/liberal green cars.

I fear this as well.

Politicians are so effin out of touch they'll scream for more

green, watered down, non-offensive, vagina-friendly crap

and veto anything with a V8 or a frame..

(mentime they are driven aroud in Town Cars, Devilles &

Escalades on the taxpayer's dime while taking bribes from

Toyopet & Hondur!)

Edited December 12, 2008 by Sixty8panther

[Intrepidation]

Just because people are Democrat doesn't make them liberal, and likewise not all Democrats fall into the extreme liberal category some of you make them out to be.

I swear, next prison to make the generalization gets a Prius up their ass.

[Sixty8panther]

DF:

I agree 100% that in general, by in large, generalization is a bad thing.

I'm not a Repulican, though I'm way RIGHT of center, but the constant

"Republicans are white millionaire pricks" stereotype is annoying and

quite ignorant.... my post was REACTIONARY.

[gm4life]

Some generalizations were made about republicans too. Read above in my quote. Most dems (the politicans) anyways want all this green $h! and I don't. Yes all democrats aren't liberal but that is the trend. A moderate or conservative democrat hardly exist. DodgeFan I was really reacting to the silly things someone post at the start of the thread...

Edited December 12, 2008 by gm4life

[Robert Hall]

The Republican party has completely LOST it,

and for the record so have the Democrats,

just in the opposite extreme.

The Republican party today seems to be a wierd coalition of the wealthy white fiscal conservative CEO class and suburban/rural white conservative evangelical social conservatives (Bible Belt) and gun nuts. It's a very strange combination that I can't relate to. The Democratic party seem to be the only party rational, diverse, and modern enough for me to embrace.

Edited December 12, 2008 by moltar

[Sixty8panther]

I'm a semi-agnostic Atheist, not religious at all (I am however, spiritual)

I AM mot certainly a gun-nut and a proponent of the 2nd amendment,

which I value over my own life.

Wealthy... err.... I work two jobs and still have a hard time affording my

basic bills! I am white though, so somehow that makes me in a position

of power....? I think not.

I can't side entirely with either party, both have MAJOR flaws.

[rkmdogs]

The Republican party today seems to be a wierd coalition of the wealthy white fiscal conservative CEO class and suburban/rural white conservative evangelical social conservatives (Bible Belt) and gun nuts. It's a very strange combination that I can't relate to. The Democratic party seem to be the only party rational, diverse, and modern enough for me to embrace.

You need to take off your rose-colored glasses then and:

Question with Boldness

Listen for and to Answers

Hold to the Truth

Speak without Fear

..... and read Thomas Paines' book Common Sense! He only wrote it over 100 years ago!

[Satty]