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Obama Supports Government Assistance for Auto Industry, Emanuel Says (SUVs and trucks are doomed)
abc ^ | 11/9/2008 | MARY BRUCE

Posted on 11/09/2008 11:13:31 AM PST by tobyhill

In his first interview since joining the Barack Obama team, incoming White House Chief of Staff Rep. Rahm Emanuel, D-Ill., said this morning that Obama supports government assistance for the auto industry using existing authority.

"First the auto industry is an essential part of our economy and an essential part of our industrial base," Emanuel said in a "This Week with George Stephanopoulos" interview.

"Second they should look at accelerating the $25 billion that was offered for re-tooling for the industry going forward.

Third, there are other authorities within the administration that they should use at this time and fourth, President-elect Obama has asked his economic team to look at different options at what it takes to help bridge the auto industry so not only are they apart of a revived economy but part of an energy policy where America is less dependent of foreign oil."

(Excerpt) Read more at abcnews.go.com ...


TOPICS: Extended News; News/Current Events; US: Michigan
KEYWORDS: 111th; automakers; bho2008; rahm

1 posted on 11/09/2008 11:13:31 AM PST by tobyhill
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To: tobyhill

Of course. He’s indebted to the UAW.


2 posted on 11/09/2008 11:15:16 AM PST by conservativeinbflo.
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To: tobyhill

Obama’s fault.


3 posted on 11/09/2008 11:16:30 AM PST by Prophet in the wilderness (PSALM .53 : 1 The FOOL hath said in his heart, there is no GOD.)
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To: tobyhill

Once Obama-economics are instituted, you won’t need pickup trucks. There won’t be any work.


4 posted on 11/09/2008 11:18:00 AM PST by realcleanguy
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To: tobyhill
Hi, I am from the Government and I am here to help you out.


5 posted on 11/09/2008 11:18:34 AM PST by darkwing104 (Lets get dangerous)
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To: tobyhill

What will I do with my $100.000 (comparatively cheap) motorhome? What will my friends do with their $750,000 rig in which they live and travel 24/7/365?

How about my SIL who has a small truck to perform his work chores. How about my daughter’s company that uses a ‘big rig’ to buy/sell wholesale tomatos? How about the hundreds of Wal-Mart trucks delivering from warehouse to store?


6 posted on 11/09/2008 11:19:12 AM PST by dbacks (God help the USA.)
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To: tobyhill

The auto industry are in their current position for a reason. How does giving them 50 billion change anything? If they don’t change what brought them to this place, they will be right back where they are now after they lose the bailout money.

If a business is failing, it needs to...


7 posted on 11/09/2008 11:19:19 AM PST by KoRn
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To: conservativeinbflo.

A new “People’s car” much like the Soviet Zaporozhets or a Chinese Geeley. Little cars that get 44 mpg and go 26 mph.


8 posted on 11/09/2008 11:19:30 AM PST by K-oneTexas (I'm not a judge and there ain't enough of me to be a jury. (Zell Miller, A National Party No More))
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To: realcleanguy
When Obie started talking about “sacrifice” no body, not even any Pubbies asked him what people would have to give up.
9 posted on 11/09/2008 11:19:52 AM PST by gov_bean_ counter ( Sarah Palin is America's Margaret Thatcher; Obama is America's George Galloway.)
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To: tobyhill

What will I do with my $100.000 (comparatively cheap) motorhome? What will my friends do with their $750,000 rig in which they live and travel 24/7/365?

How about my SIL who has a small truck to perform his work chores. How about my daughter’s company that uses a ‘big rig’ to buy/sell wholesale tomatos? How about the hundreds of Wal-Mart trucks delivering from warehouse to store?


10 posted on 11/09/2008 11:19:54 AM PST by dbacks (God help the USA.)
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To: conservativeinbflo.
Of course. He’s indebted to the UAW.

Someone has to pay for those salaries, pensions and insurance promised by a bankrupt auto industry.

11 posted on 11/09/2008 11:20:28 AM PST by kcvl
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To: tobyhill

Anybody heard that 10 Billion will go to the Unions supposedly for health care of Union members?


12 posted on 11/09/2008 11:20:35 AM PST by Red_Devil 232 (VietVet - USMC All Ready On The Right? All Ready On The Left? All Ready On The Firing Line!)
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To: tobyhill

Sure, I’m going to put around the Riverside county hill country with a Hyundai 4 cylinder enviro-friendly piece of crap. Bail out Detroit, and dump on their products. The audacity of hypocrisy.


13 posted on 11/09/2008 11:20:52 AM PST by HondaCRF450
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To: gov_bean_ counter

Obama will give up looking for another job. We will give up all our money and freedoms


14 posted on 11/09/2008 11:21:45 AM PST by realcleanguy
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To: K-oneTexas

http://en.wikipedia.org/wiki/Trabant
Trabant


15 posted on 11/09/2008 11:22:15 AM PST by abb ("What ISN'T in the news is often more important than what IS." Ed Biersmith, 1942 -)
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To: abb

That works too. Classic. Sleek. Priced for everyone.


16 posted on 11/09/2008 11:23:35 AM PST by K-oneTexas (I'm not a judge and there ain't enough of me to be a jury. (Zell Miller, A National Party No More))
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To: K-oneTexas

Although Trabants had been exported from East Germany, they became well-known in the West after the fall of the Berlin Wall when many were abandoned by their Eastern owners after migrating westward. News reports inaccurately described them as having cardboard bodies. This is likely due to the fact that the body of the Trabant was Duroplast, a material that, in East German production, often made use of varying quantities of different fibers, such as cotton, or occasionally paper.


17 posted on 11/09/2008 11:25:49 AM PST by abb ("What ISN'T in the news is often more important than what IS." Ed Biersmith, 1942 -)
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To: tobyhill

Them makin’em, and us buyin’em, is two different things.


18 posted on 11/09/2008 11:26:40 AM PST by FrankR (Let's sit back and watch the show - popcorn anyone?)
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To: abb

Is enough for the masses. White for the People’s and black for the gobermint. Black Caddies.


19 posted on 11/09/2008 11:28:37 AM PST by K-oneTexas (I'm not a judge and there ain't enough of me to be a jury. (Zell Miller, A National Party No More))
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To: tobyhill
In line with the Obama Maladministration’s offer to bail out the U.S. auto industry if they stop production of SUVs and trucks and retool for smaller, more fuel-efficient vehicles, Obama today ordered ALL presidential and White House vehicles be replaced with this new design (which looks suspiciously like the ’85 Yugo GV).

Photobucket

20 posted on 11/09/2008 11:29:15 AM PST by Dick Bachert
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To: Dick Bachert

Trabant 600 Wagon

21 posted on 11/09/2008 11:34:00 AM PST by abb ("What ISN'T in the news is often more important than what IS." Ed Biersmith, 1942 -)
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To: tobyhill

At the end of 2002, General Motors, the company with the largest workforce and therefore the greatest pension obligation, had $39 billion in pension assets.

A major UAW goal in pension negotiations is to provide basic lifetime pension benefits that replace a reasonable percent of the worker’s pre-retirement income. This is part of the “three-legged stool” of retirement security, which includes a pension, government Social Security benefits and personal savings.

******

October 22, 2007

Under GM’s new contract with the UAW, new hires for nonproduction jobs will earn $15.30 in base pay after initially getting $14-an-hour training pay. Including health insurance and a 401(k)-style pension plan, the new hires will make $25.65 an hour, GM said.

Existing GM hourly employees earn base wages of $28.12 an hour. Including health insurance ...

******

March 12, 2004

GM Says Health Care Obligation Hit $67.5B

GM currently pays health care expenses for 450,000 retirees

******

March 7, 2006

GM retirees balk at higher health care costs

General Motors Corp. retirees asked a federal judge Monday to reject a settlement that would require them to pay more for their health care, saying it violates their contracts. But GM and the United Auto Workers said the agreement is critical to the struggling automaker’s future. “This is the only hope that there is that GM will be able to continue to survive,” said Julia Penny Clark, an attorney for the UAW. “GM is at risk of not being able to provide these benefits.”


22 posted on 11/09/2008 11:34:07 AM PST by kcvl
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To: tobyhill

Next time America needs to manufacture a bunch of main battle tanks in an extreme hurry — there will be some posters on this board who will be happy, our auto industry is getting some support right now.


23 posted on 11/09/2008 11:36:04 AM PST by Cringing Negativism Network (PALIN 2012: No more RINOS... Ever!!)
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To: KoRn
Let Chrysler die. Between Daimler and Cerberus, they have killed off all future development and have left a stable of poorly built junk. No money to GM unless they fire the Board of Directors and all senior executives (and even then, no money to them as they are soon to sink unless a miracle occurs). If you give money to any of them, Ford is at least heading down the road to “getting it right”, unless the arrogance of the fiefdoms kills Mulally’s gains and the company itself.
24 posted on 11/09/2008 11:36:17 AM PST by Corporate Law (Palin/Jindal 2012)
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To: tobyhill

none of GM’s management miscues was so damaging to its long-term fate as the rich pensions and health care that robbed [GM] of its financial flexibility and ultimately, of its cash. ... Detroit was too flush to envision it would ever face a financial strain. ... [GM] got into the dubious habit of steadily increasing worker benefits. In the ‘90s, the consequences of maintaining a corporate welfare state became too obvious to ignore. ... GM acknowledged it its most recent annual report that from 1993 to 2007 it spent $103 billion ‘to fund legacy pensions and retire health care.’

http://tinyurl.com/59xmlq


25 posted on 11/09/2008 11:36:38 AM PST by kcvl
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To: tobyhill

Maybe he should suggest a $700 billion bail out.


26 posted on 11/09/2008 11:37:02 AM PST by stevem
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To: tobyhill

The government gives them money. The government tells them what to build.


27 posted on 11/09/2008 11:38:49 AM PST by Terry Mross ( It's just a matter of time before we're all 'GUILTY' of hate speech.)
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To: tobyhill

UAW urges public to oppose House bill that harms pensions - 12/06/05

The U.S. House is about to take up a pensions bill that the United Auto Workers says will outlaw early retirement benefits in plant closing and will freeze the pension benefits of hundreds of thousands of workers in well-funded plans by changing accounting rules. Alan Reuther is Legislative Director for the UAW.

[Alan Reuther 1] : “These proposals we think are being pushed by people who want to get rid of defined benefit pensions plans. And that’s why they’re pushing these counterproductive ideas.”

“We’re asking people to call their members of Congress and to urge them to oppose this pension bill and to send a strong message that it’s not right to be freezing the pensions of workers and retirees.


28 posted on 11/09/2008 11:39:40 AM PST by kcvl
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To: tobyhill

the all new GM HUGO is here! (A Yugo named after O’s best friend Chavez.)


29 posted on 11/09/2008 11:39:40 AM PST by Terry Mross ( It's just a matter of time before we're all 'GUILTY' of hate speech.)
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To: tobyhill

Emmanuel is a moron who doesn’t understand anything except the nice cushy office he works out of.

Of course if he had a lick of common sense, he would realize that the work crews that built his office, home, etc... relied on trucks.


30 posted on 11/09/2008 11:39:53 AM PST by autumnraine (Churchill: " we shall fight in the fields and in the streets, we shall never surrender")
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To: conservativeinbflo.

indebted to the UAW.


There you go. It’s the UAW goons that got the corporate boytoy elected...they and all the union comrades out there


31 posted on 11/09/2008 11:40:20 AM PST by eleni121 (EN TOUTO NIKA!! +)
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To: tobyhill

32 posted on 11/09/2008 11:44:35 AM PST by BenLurkin
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To: KoRn
The auto industry are in their current position for a reason. How does giving them 50 billion change anything? If they don’t change what brought them to this place, they will be right back where they are now after they lose the bailout money.

Exactly. Obama wants to reward and encourage bad management and failure.

With our money.

33 posted on 11/09/2008 11:45:03 AM PST by Allegra
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To: Corporate Law

“Let Chrysler die”

Makes sense, but we are moving to liberal fascism/big government conservatism.

In the old days these companies would look to banks for loans. Banks are for the little people these days, the big guys go for the govt. moolah, while the class warriors are distracted by obsessions with unions.


34 posted on 11/09/2008 11:51:38 AM PST by Shermy ( "You know, Paul, Reagan proved deficits don't matter,")
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To: tobyhill

Sweeeeeeet

Some UAW union guy hearing this is booking an extra 2 week vacation to Hawaii, purchasing a new ski-doo, reconsidering that vacation home, getting braces for the kids and putting an extra $200 down on the Lions.


35 posted on 11/09/2008 11:56:33 AM PST by Drango (A liberal's compassion is limited only by the size of someone else's wallet.)
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To: abb

That must be the Sports Model w/ racing stripe.


36 posted on 11/09/2008 12:12:31 PM PST by Vinnie (You're Nobody 'Til Somebody Jihads You)
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To: tobyhill
"First the auto industry is an essential part of our economy and an essential part of our industrial base," Emanuel said...

Translation: We don't want black riots on the streets of Detroit: It just wouldn't look good if there were rioting given that Obama won....

37 posted on 11/09/2008 12:16:03 PM PST by TaxRelief (Walmart: Keeping my family on-budget since 1993.)
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To: tobyhill
Emanuel Says (SUVs and trucks are doomed)

Not to worry. They'll be cranked out in peace-loving, free and wonderful paradise of the democratic People's Republic of China, a.k.a Red China.

But hurry! GM can help Red China more with some of the money now!

General Motors Aims to Raise Stake in China Venture

"Nov. 9 (Bloomberg) -- General Motors Corp., the biggest overseas automaker in China, is in talks with a local partner to increase its stake in a venture that produces vans and light trucks under the Wuling brand.

The U.S. automaker is seeking to buy additional shares in SAIC-GM-Wuling Automobile Co., Hu Maoyuan, chairman of SAIC Motor Corp., said yesterday in an interview in Tianjin. SAIC is the majority shareholder of the venture with 50.1 percent, GM owns 34 percent and Liuzhou Wuling Motors Co. holds the rest. . . . "

38 posted on 11/09/2008 12:16:53 PM PST by WilliamofCarmichael (If modern America's Man on Horseback is out there, Get on the damn horse already!)
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To: KoRn

This is a payout to the union voters that put Obama in power. All “bailouts” in future will buy votes for Obama’s re-election.


39 posted on 11/09/2008 12:18:00 PM PST by TaxRelief (Walmart: Keeping my family on-budget since 1993.)
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To: tobyhill

So how does this position jibe with the fact that their government wants to spend hundreds of billions of dollars on “green” projects designed to lower “greenhouse gases”? If you jack up the carbon taxes, the first ones to suffer will be the Detroit automakers.


40 posted on 11/09/2008 12:26:10 PM PST by Fractal Trader
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To: Red_Devil 232

I heard Kudlow talking about that on the radio yesteray


41 posted on 11/09/2008 12:30:17 PM PST by jersey117
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To: Allegra
I really get tired of all of this “bad management” I read about here.

If you guys were old enough, this is what you would know.

Our auto manufacturers are in the mess they are in for the same reason the banks are in trouble. Too much government.

In WWII, the NLRB required the major manufacturers doing war work to have a union shop.

Once they had their hooks in, they demanded more and more and more.

After the war, they threatened strikes at every drop of the hat. Business was booming and the presidents of the auto industry had no choice but to go along with the unions. How can the president of a stockholder company survive the next election of officers if he shut the company down for 6 months or a year? He couldn't.

At the same time, a machinery company I represented shut down for 6 months in a fight with the union. They could do it because it was family held. Everyone was in agreement to lose substantial business to combat unrealistic demands.

Now add to the union bleeding them, the EPA and other government burdens added later, including the present one that they must have fleet average of 35 miles per gallon by ...when? I think 2012, but I am not sure.

The point is that no management no matter how astute could have steered our auto industry through all of that crap and ended up anywhere except where they are today.

42 posted on 11/09/2008 12:58:46 PM PST by old curmudgeon
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To: tobyhill

The construction industry will cease to exist without trucks to haul their materials and tools.

How about agriculture?


43 posted on 11/09/2008 12:59:47 PM PST by ridesthemiles
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To: tobyhill

Many rural and mountain people rely on trucks and four wheel drive for their safety. When you are traveling the back dirt roads of the forest, you need a heavy vehicle to get you out of potentially dangerous situations - like pulling a tree from the road or passing through rutted or muddly places. Farmers also need something substantial for the fields for winter feeding (ranch truck.) Others need 4-wheel drive for snow - particularly when all roads are not immediately ploughed.

I could not get up my driveway without a vehicle with high clearance and 4 wheel drive in the winter. A midget car would not survive here.


44 posted on 11/09/2008 1:00:37 PM PST by marsh2
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To: dbacks
What will I do with my $100.000 (comparatively cheap) motorhome?

You might end up living in it!

45 posted on 11/09/2008 1:03:40 PM PST by lonestar
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To: Fractal Trader
So how does this position jibe with the fact that their government wants to spend hundreds of billions of dollars on “green” projects designed to lower “greenhouse gases”?

Simple. All future cars from the Big 3 will be "green" cars.

You want our money? You adhere to our demands!

It won't matter a whit if Americans want to buy them (or something else) or not. It's called a "command economy". For specific guidance, look to the role of specifications used in current government contracts. No deviation from spec is allowed. You make it like that and that's it. Otherwise, no money!

No doubt it will soon be set up on a 5 Year Plan...

46 posted on 11/09/2008 1:06:54 PM PST by Gritty (Barack will never allow you to go back to your lives as usual - Michelle Obama)
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To: jersey117
I heard it mentioned on Fox this morning. In my opinion the the unions should be specifically refused any bail out monies. No money for golden parachuts and no money for the unions.
47 posted on 11/09/2008 1:12:44 PM PST by Red_Devil 232 (VietVet - USMC All Ready On The Right? All Ready On The Left? All Ready On The Firing Line!)
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To: tobyhill

This auto bailout needs to go through. It cost a lot to retool for the new 15,000 lb, 500 HP Escalade hybrid being planned for 2010. This first 50 billion installment will keep the auto industry alive through June 2009 at which time another bailout will be needed in order to finance the 2010 rollout. GM claims this escalade will be positioned to compete directly with Ford’s new MONSTER SUV also being rolled out in 2010, a 17,000 lb, 600 HP luxury SUV that seats 2 but offers bowling, 60 inch TV and other amenities.


48 posted on 11/09/2008 1:19:10 PM PST by Joan Kerrey
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To: tobyhill

Good move we can but Asian SUVs. The reason for not having an SUV is gong away.


49 posted on 11/09/2008 1:38:55 PM PST by Mike Darancette (Vote Obama: Get more stuff!)
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