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 ...
I heard Kudlow talking about that on the radio yesteray
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.
The construction industry will cease to exist without trucks to haul their materials and tools.
How about agriculture?
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.
You might end up living in it!
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...
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.
Good move we can but Asian SUVs. The reason for not having an SUV is gong away.
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